What is the required minimum percentage of employee participation for a non contributory group health insurance plan according to Florida law?

Group Policy Termination: If the master policy is terminated, each individual member who has been insured for at
least 5 years is permitted to convert to an individual policy, providing coverage up to the face value of the
group policy.

The following are other types of life insurance issued as group plans:

Franchise Life Insurance: This is used when participants are employees of a common employer (i.e., the
employer may operate several companies) or are members of a common association or society. The
employer/association/society is a sponsor of the plan and may or may not contribute to the premium payments.
Unlike the employer’s group plan, each individual will be issued an individual policy which will remain in force as
long as premiums are paid and the employee/member maintains their relationship with the sponsor. These are used
by small groups who individually do not meet the state’s minimum numbers required by law.

Group Credit Life: These are set-up by banks, finance companies, etc., to provide that if the insured dies before
a loan is repaid, the policy benefits will be used to settle the loan balance. Premiums for group credit life insurance are based on claims experience and expense factors, not necessarily the borrower's age. The premiums are usually paid by the insured. A decreasing term policy is commonly used.

Blanket Life Insurance: Covers groups of people exposed to the same hazard, such as passengers on an airplane.
No one is named on the policy and there is not a certificate of coverage given out. Individuals are only covered for
the common hazard.

Group Policy Termination: If the master policy is terminated, each individual member who has been insured for at
least 5 years is permitted to convert to an individual policy, providing coverage up to the face value of the
group policy.

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• What minimum percentage of all eligible employees must participate in a group life insurance?
• What is contributory or non contributory?
• What is required in the Florida employee Health Care Access Act quizlet?
• What is a participating life insurance policy?

The following are other types of life insurance issued as group plans:

Franchise Life Insurance: This is used when participants are employees of a common employer (i.e., the
employer may operate several companies) or are members of a common association or society. The
employer/association/society is a sponsor of the plan and may or may not contribute to the premium payments.
Unlike the employer’s group plan, each individual will be issued an individual policy which will remain in force as
long as premiums are paid and the employee/member maintains their relationship with the sponsor. These are used
by small groups who individually do not meet the state’s minimum numbers required by law.

Group Credit Life: These are set-up by banks, finance companies, etc., to provide that if the insured dies before
a loan is repaid, the policy benefits will be used to settle the loan balance. Premiums for group credit life insurance are based on claims experience and expense factors, not necessarily the borrower's age. The premiums are usually paid by the insured. A decreasing term policy is commonly used.

Blanket Life Insurance: Covers groups of people exposed to the same hazard, such as passengers on an airplane.
No one is named on the policy and there is not a certificate of coverage given out. Individuals are only covered for
the common hazard.

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Group insurance is a way to provide life insurance, health insurance, or both kinds of coverage for a number of people under one contract. Typically, group insurance is provided by an employer for its employees; however, it is available to other kinds of groups as well, as we will see. Different from individual life insurance, which is written on a single life, group life insurance is written on more than one life. Group life insurance is usually written for employee-employer groups and is most often

written as an annually renewable term policy.

Contributory and Noncontributory Plans

Contributory Plan – An employee group insurance plan in which employees share the cost. Insurance company

Noncontributory Plan – The employer pays the entire cost of the plan. Insurance company requires that 100% of all eligible employees participate. One major benefit of a noncontributory insurance plan is that it helps the insurer avoid adverse selection.

Experience rating relies on the group's track record of past claims to determine premiums.

Under a group policy, the group as a whole must qualify for coverage, not each individual. The employer as the policyowner determines the amount of coverage to be offered. The insurer can require a certain amount of employee participation before issuing coverage.

Contributory group life insurance plans are those plans in which the employee contributes a portion of the premium and the employer pays the rest. Noncontributory group life insurance plans are those plans in which the employer pays the entire premium and the employee supplies no portion of the premium costs.

Florida law requires 100% participation by eligible employees in noncontributory group life insurance plans. There is no requirement for minimal participation in contributory group life insurance plans.

Florida does not place minimum guidelines on the amount of participants required to be considered for group coverage.

Insurable groups typically fall into one of the following categories:

• Single-employer groups
• Multiple-employer groups
• Labor unions
• Trade associations
• Creditor/debtor groups
• Fraternal organizations

There are two types of insurance plans for group life insurance programs: (1) Term Life and (2) Whole Life. Group term life insurance is the least expensive group life coverage. Policy premiums at renewal time are based on the entire group's loss experience during the previous year. Group whole life insurance can be broken down into three different types of offerings: (1) Group ordinary plans, (2) group paid-up plans, and (3) group universal life plans.

Exceptions to the master policy theme are franchise, blanket, and credit life insurance.

• Franchise life insurance - Individually owned policies for small groups.
• Blanket life insurance - Temporary coverage of a specific hazard for a specific group.
• Credit life insurance - Applies to the relationship between debtor groups and creditor groups.

A MET is a popular method of marketing group benefits to employers who have a small number of employees.

A MEWA provides insurance for union employees and is self-funded with tax exempt status. Employees covered under a MEWA are required by law to have an employment-related bond.

All group life insurance policies must be convertible. The conversion period is 31 days. Any death within the conversion period is covered.

Industrial life policies that total $3,000 or more in face value can be converted into an ordinary life policy without evidence of insurability.

The information contained in Unit 10 of the Florida study manual has been presented in Lesson 6 of the online course.

You remember what contributory and noncontributory mean, don't you? If the employee must contribute to the premium payments, it is considered "contributory." On the reverse side, if the employer pays the entire premium payments on behalf of the employees where the employee makes no contribution, it is considered "noncontributory."

Some people get confused and think that contributory means the employer is making the contribution...Not so! The key to remembering the difference is that the theory rests on the employee, not the employer.

Typically, noncontributory plans require 100% employee participation; contributory plans usually require approximately 75% participation.

(However, under Florida law there is no specific minimum percentage participation for employees covered by employee group health insurance.)

Helpful Hint

What minimum percentage of all eligible employees must participate in a group life insurance?

For noncontributory plans, 100 percent of the eligible employees must participate. If a plan is contributory (partially or fully funded by employees), a minimum number of eligible employees must participate, as specified in the Employee Benefits Proposal.

What is contributory or non contributory?

Contributory - Group life insurance plans are those in which the employee 'contributes' a portion of the premium and the employer pays the rest. Noncontributory - Group life insurance plans are those in which the employer pays the entire premium and the employee supplies no portion of the premium costs.

What is required in the Florida employee Health Care Access Act quizlet?

For example, the Florida Health Care Access Act requires that any employee signing up for insurance provide a full and accurate disclosure statement.

What is a participating life insurance policy?

What is participating life insurance? Participating life insurance provides a combination of permanent life insurance (whole life insurance) protection and an opportunity for tax-preferred cash value growth. The base insurance protection is guaranteed for life, as long as you pay the premiums on time.

What is the required minimum percentage of employee participation for non contributory group health insurance?

What is the requirement minimum percentage of an employee participation for a non contributory group health insurance plan according to Florida law?

What type of group plan requires 75% participation?

What is required in the Florida employee Healthcare Access Act?