State RegulationsFL specificDifficulty 2/5
A Florida entity wants to operate as a prepaid (limited) health service organization, contracting to provide a defined set of health services to subscribers on a prepaid basis. Which chapter of the Florida Statutes governs these organizations?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 636, Florida Statutes, prepaid (limited) health service organizations are governed: entities that contract, on a prepaid basis, to provide specified, limited health care services to their subscribers. The other chapters anchor different bodies of law, Chapter 631 houses the Life and Health Insurance Guaranty Association, Chapter 624 contains general insurer provisions, and Chapter 627 governs insurance contract provisions, so knowing the chapter home for prepaid service organizations is a classic exam discriminator.
Why the other options are wrong
- A) Chapter 631 contains the guaranty association provisions for insolvent insurers, not the prepaid limited health service framework.
- C) Chapter 624 holds general insurance code provisions such as insurer licensing and penalties, not the prepaid service organization chapter.
- D) Chapter 627 governs insurance policy provisions, including many health contract standards, but prepaid limited health service organizations have their own chapter.
Memory hook
Prepaid and limited? That is Chapter 636.