State RegulationsFL specificDifficulty 2/5
A Jacksonville employer's group life plan requires employees to pay part of the premium. What kind of plan is this, and what does it require of employees?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, a contributory group life plan is one in which employees share the premium cost: they elect the coverage during enrollment and typically pay their share through payroll deduction. In a noncontributory plan the employer pays the entire premium and generally all eligible employees are covered. The distinction matters at enrollment, because employee contributions require affirmative elections.
Why the other options are wrong
- A) A noncontributory plan is the opposite - the employer pays the entire premium.
- C) Creditor-debtor plans insure borrowers' loan balances; they are a different group category entirely.
- D) Employee-paid group life is still group life under Florida rules; there is no such exemption.
Memory hook
Contributory: employees contribute at enrollment.