State RegulationsFL specificDifficulty 3/5
How does Florida's guaranteed issue requirement for small employer groups change underwriting compared with traditional individual underwriting?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, guaranteed issue removes health status from the accept-or-reject decision for small employer groups: a qualifying group must be issued coverage without the medical-history screening that dominates individual underwriting. The trade-off is that rating and renewability rules are structured to keep the market stable, so no side door exists for rejecting the sick group after examining its medical files.
Why the other options are wrong
- B) Guaranteed issue eliminates the medical-examination gatehouse for the group's eligibility; no exam requirement takes its place.
- C) Rejecting an employee because of a prior claim is health-based discrimination the small employer rules prohibit.
- D) The owner's personal health history is not the touchstone; the group as a whole must be issued coverage on guaranteed issue terms.
Memory hook
Guaranteed issue = no medical sieves for the small group.