State RegulationsFL specificDifficulty 2/5
A Florida employee's spouse, insured as a dependent under his group life plan, dies. Who generally receives the dependent's death benefit?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, dependent coverage exists for the member's benefit: when a covered dependent such as a spouse dies, the death benefit is generally payable to the employee member (or to a beneficiary the plan lets the employee designate for that coverage). The employer holds the master policy but has no claim to members' benefits, and the proceeds do not go to the dependent's creditors.
Why the other options are wrong
- B) The employer is the policyholder for administration only; it takes no benefits from members' or dependents' coverage.
- C) The benefit is a payable death claim, not a premium refund.
- D) The dependent's creditors have no claim to this group death benefit payable on the employee's coverage.
Memory hook
Dependent dies, employee collects - that's whose loss it covers.