The national guide explains term, whole life, universal, variable and indexed products, endowments and special-use policies. This page covers the Florida rules on group life (627.551 to 627.571), credit life, variable contracts and policy plans Florida prohibits.

Group life in Florida

• Eligible groups include employer-employee, debtor, labor union, trustee and credit union groups. A group formed just to buy insurance doesn't qualify (627.552 to 627.556).
• Coverage may extend to spouses and dependent children (627.5575).
• Policy provisions:
  • 31-day grace period (627.559)
  • incontestable after two years, except for nonpayment (627.560)
  • each insured receives a certificate describing benefits, beneficiary and conversion rights (627.565)
• Conversion:
  • A departing insured converts without evidence of insurability by applying and paying within 31 days (627.566).
  • If the group policy itself ends, people insured at least five years may convert. The converted amount may be capped at $10,000 (627.567).
  • If the person dies during the conversion period, the convertible amount is paid as a group claim even without an application (627.568).
• Assignment: an insured may assign the incidents of ownership of group life, including conversion rights and the right to name a beneficiary (627.571).

Credit life

• Credit life on a debtor may never exceed the debt (627.679).

Variable contracts

• Variable life and variable annuities hold assets in a separate account (627.8015).
• Selling them requires passing the variable contracts exam, which is part of the Life exam, plus securities registration (626.7845).

Other Florida rules

• Nonforfeiture: permanent policies must provide nonforfeiture options such as cash surrender, reduced paid-up and extended term (627.476).
• Prohibited plans: tontine-style plans, and specialty policies such as annual endowment, founder's and coupon-bearing policies (627.479).
• Annuity and pure endowment grace period: one month, but not less than 30 days (627.465).

Exam traps

• Group life: 31-day grace period and 31-day conversion window.
• When the whole group plan ends, conversion requires 5 years of coverage and may be capped at $10,000.
• Credit life can never exceed the debt.