State RegulationsFL specificDifficulty 2/5
Under Florida's Small Employer Rating, Renewability and Portability Act requirements, a carrier setting premium rates for a small employer group:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, small employer rating rules confine carriers to the rating structure Florida allows, with variation only for permitted factors, and prohibit setting a group's premium from its own health status or claims experience. The design balances pricing realism with the principle that a small business should not be priced out of coverage precisely because its employees got sick.
Why the other options are wrong
- B) Individual rate-setting from employees' medical files is experience-based health rating, which the small employer rules prohibit.
- C) The rules permit limited variation for recognized factors, so a single statewide rate is not required.
- D) The owner's credit history is not an authorized rating factor for small employer health coverage under the Act's framework.
Memory hook
Rate the allowed factors, never the group's claims.