State RegulationsFL specificDifficulty 3/5
Which of the following is a ground on which a Florida small employer health carrier may lawfully refuse to renew an existing small employer group?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, small employer carriers must generally renew existing groups, but the statute recognizes limited grounds for nonrenewal, and nonpayment of premiums is the classic one, alongside fraud, misrepresentation, or the carrier's discontinuance of the particular product. Claims experience and the group's aging are expressly not permissible reasons, which is what makes the renewal protection meaningful for small businesses.
Why the other options are wrong
- A) Using a large claim as the reason for nonrenewal is health-status and claims-based discrimination the small employer rules forbid.
- B) The natural aging of a group is not a permissible nonrenewal ground; small employer groups would otherwise shed their coverage as they mature.
- D) Shopping for quotes is a free-market right of the employer and cannot be punished with nonrenewal.
Memory hook
No renewal on claims or age; nonpayment is the lawful out.