State RegulationsFL specificDifficulty 1/5
Before issuing a group life policy in Florida, an underwriter reviews each applicant group for eligibility. Which of the following groups would fail that review?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, eligible groups share a genuine common bond: employer-employee groups, labor unions, associations formed for non-insurance purposes, creditor-debtor groups, and trusts. A group of investors assembled for the sole purpose of obtaining group insurance rates has no qualifying common bond and is ineligible. The other three are textbook eligible groups.
Why the other options are wrong
- A) Employer-employee groups are the classic eligible group for group life insurance.
- B) Labor unions are a recognized eligible group category.
- D) Creditor-debtor groups, such as a finance company's borrowers, are eligible for group life.
Memory hook
No bond, no group - investing together is not insurable togetherness.