State RegulationsFL specificDifficulty 2/5
Which statement about eligibility requirements for Florida group life insurance is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 627, Florida Statutes, the unifying eligibility principle for group life insurance is that the group must exist for a reason beyond insurance - employment, union membership, association membership, or a creditor-debtor relationship. A group organized for the sole purpose of obtaining insurance does not qualify. This common-bond requirement is what makes group-wide underwriting without individual exams actuarially sound.
Why the other options are wrong
- A) Groups formed for the sole purpose of buying insurance are expressly ineligible.
- B) Many group types qualify, including employer, association, and creditor groups - not just unions and government employers.
- C) Group coverage is underwritten on the group as a whole, not member by member.
Memory hook
The bond comes first; the insurance comes second.