State RegulationsFL specificDifficulty 3/5
Which statement about assignment of group life coverage in Florida 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, an insured employee's interest in group life coverage may be assigned - most commonly by a collateral assignment to a creditor to secure a debt. The employer holds the master policy, but the assignment rights belong to the insured employee, and the insurer acknowledges the assignment of record when one is filed. Group life proceeds are not barred from assignment, and beneficiary consent is not required to assign the employee's own interest.
Why the other options are wrong
- A) The employer holds the master policy but cannot assign the employee's interest in his own coverage.
- B) Group life interests are assignable in Florida; there is no absolute prohibition.
- D) The employee does not need beneficiary consent to assign his own interest in the coverage.
Memory hook
Even group coverage can back a loan - assign your own interest.