State RegulationsFL specificDifficulty 2/5
Rosa is covered under her Orlando employer's group life plan and also carries dependent coverage on her husband. If Rosa dies, what happens to the dependent coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, dependent coverage in group life is written as a supplement to the employee's own coverage - it exists only while the employee is covered and ends when the employee's coverage ends, whether by death, termination of employment, or the end of the plan. Depending on the plan's terms a surviving dependent may have conversion rights, but there is no automatic continuation at group rates. Agents should explain this limit when clients buy dependent coverage.
Why the other options are wrong
- A) Dependent coverage does not survive the covered employee's death at group rates; it is tied to the employee's own coverage.
- C) Conversion is never automatic - a surviving dependent must affirmatively apply within any conversion period the plan provides.
- D) The employer has no obligation to give the survivor a free individual policy.
Memory hook
Dependent coverage rides on the employee - no employee, no rider.