State RegulationsFL specificDifficulty 1/5
A Florida employee life plan in which employees pay part of the group life premium is described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, employee life plans follow two cost models: contributory plans, in which employees share the premium cost, and noncontributory plans, in which the employer pays the entire premium. When the workforce chips in for group life coverage, the plan is contributory - a distinction that also drives participation rules, since contributory plans rely on employees' willingness to enroll.
Why the other options are wrong
- B) Noncontributory means the employer pays the entire premium; here employees share the cost.
- C) Franchise insurance refers to individual policies issued to members of a group under another arrangement, not cost sharing.
- D) Employer-owned life insurance is a different product in which the employer is the policyholder and beneficiary; the term does not describe premium sharing.
Memory hook
Employees contribute = contributory.