State RegulationsFL specificDifficulty 1/5
How is the amount of employee life coverage typically determined under a Florida group life plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, group life plans set the amount of employee coverage by the plan's benefit schedule - commonly a flat amount for each class or a multiple of each employee's earnings. The amount is not set by individual underwriting, prior claims experience, or any election made at claim time. Agents explaining a plan to employees should point to the schedule shown in the certificate.
Why the other options are wrong
- A) Individual applications and medical histories are individual underwriting; group life avoids exactly that.
- B) Claims experience may affect future group rates, but it does not set each employee's benefit amount.
- D) The benefit amount is fixed by the plan while the employee is covered, not chosen after death.
Memory hook
Flat per class, or a multiple of pay - the schedule sets the benefit.