Group Life

Standard provisions/required provisions

Remember, there is no minimum requirement (number of lives) for group insurance in Florida and it must be a natural group.

Grace Period

The grace period is 31 days for group policies.

Incontestability

This gives the insurer two years to cancel the policy if there was a material misrepresentation, just like individual policies.

Attachment of application to policy; representations in application

A copy of the application must be attached to the policy and if a claim is made and then contested by the insurance company at death then a copy of the document to which the statement was made must be furnished to the beneficiary. All statements are considered to be representations, not warranties.

Evidence of individual insurability

If an individual insured at first declined the coverage and then later wanted to enroll, the insurer has the right to require evidence of insurability for that person, but must have a provision saying as much in the policy.

Misstatement of age

The insurer will either adjust the benefits or adjust the premium if they discover the age of the insured individual was misstated.

Designated beneficiary; reimbursement for expenses

At death, the proceeds are to paid to a named beneficiary. However, if the beneficiary is not alive then the insurer, at it's option, may pay a portion of the benefit, up to $2000 to anyone who can show equitable entitlement as a reimbursement (for example, someone who paid for the funeral).

Individual certificates

A group life insurer must issue to the policyholder (the employer) a certificate for each person covered containing the group number and describing:

• the person insured
• the amount of insurance
• beneficiary
• any dependent coverage, if any
• the rights and conditions

Notification of termination

Certificate holders have to be notified when the master policy has expired or been canceled, but the insurance company may take this action through the policyholder (employer) by notifying it and request it notify the certificate holders.