State RegulationsFL specificDifficulty 2/5
Which statement about the policy produced by Florida's group life conversion privilege is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, when an employee exercises the group life conversion privilege the insurer must issue an individual policy on any form it customarily issues, other than term, and the employee pays the applicable individual rate. The conversion produces real permanent individual insurance - not an extension of the group term coverage and not a subsidized group rate. The employee owns the new policy outright once it is issued.
Why the other options are wrong
- A) Term insurance is excluded from the forms available for conversion.
- B) Individual rates, not group rates, apply once the coverage is converted.
- D) The departing employee, not the employer, pays the premium on the converted policy.
Memory hook
Convert to permanent, priced as an individual.