State RegulationsFL specificDifficulty 1/5
Which of the following is an eligible group for Florida group life insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, employer-employee groups are the classic eligible group for group life insurance: the employer is the policyholder and the employees are the insured members. Groups assembled solely to buy insurance or random collections of applicants lack the common employment or membership bond the law requires, and shareholders as such do not form an eligible group.
Why the other options are wrong
- A) A group must exist for reasons other than obtaining insurance; a buy-insurance club is ineligible.
- C) Unrelated applicants gathered by an agent have no common bond and cannot form a group.
- D) Shareholder status alone is not an eligible grouping for life insurance purposes.
Memory hook
Common bond first: employment or membership, not bargain hunting.