State RegulationsFL specificDifficulty 3/5
Tom's group life coverage ended when he left his Tampa employer. He dies during the conversion period without having applied for an individual policy. What is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, if an employee whose group life coverage has terminated dies during the conversion period without having converted, the insurer must pay the death benefit in the amount the employee was entitled to convert. The conversion privilege protects the employee's right to continue the coverage, and death inside that window does not extinguish it. The protection is limited, though - once the conversion period runs out, so does the entitlement.
Why the other options are wrong
- A) The whole point of conversion-period protection is that the right survives termination of the group coverage.
- C) The insurer, not the former employer, stands behind the death benefit.
- D) A refund of premiums is not the remedy; the convertible amount is payable as a death benefit.
Memory hook
Died mid-window? The conversion amount still pays.