State RegulationsFL specificDifficulty 2/5
A Florida employee transfers from a covered class into a position that is not covered by her employer's group life plan. What happens to her group life coverage?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, group life coverage depends on membership in an eligible class as defined by the plan. When the employee moves out of that class - just as when employment ends - the coverage terminates, and the conversion privilege becomes available to her without evidence of insurability. The trigger is loss of eligibility, not merely leaving the employer's building.
Why the other options are wrong
- A) Coverage follows eligibility; once she leaves the covered class, the group coverage does not continue.
- C) Conversion is a right the employee must elect and apply for - it never happens automatically.
- D) Group life does not become a free lifetime paid-up benefit for anyone.
Memory hook
Leave the class, lose the coverage - but you can convert.