State RegulationsFL specificDifficulty 2/5
A Florida trade association wants to arrange health coverage for its members through a licensed insurer. How may the insurer issue coverage to such an association?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Florida insurers may issue blanket or group health coverage to a bona fide association to insure its members; the insurable interest arises from the members' common association membership. Under Chapter 627, Florida Statutes, blanket health insurance covers defined classes of persons, such as association members, in connection with their membership. No individual medical examination of each member is required, and the association need not employ its members.
Why the other options are wrong
- A) Blanket and group coverage does not depend on each member passing an individual medical examination.
- B) An insurer can issue association coverage directly; creating a new stock subsidiary is not required.
- D) Association members need not be employees of the association; their common membership itself supports the coverage.
Memory hook
One association, one blanket.