Life · Chapter 21 · Conversion
Conversion on Policy Termination (5-Year Rule)
Definition
If the group policy terminates the insurance of any class of insured members, every member insured on the termination date — including insured dependents — who has been insured for at least five (5) years before the termination date is entitled to convert to an individual life policy without evidence of insurability. The convertible amount is capped at the LESSER of (a) the coverage lost, minus any group coverage the person becomes eligible for within 31 days, or (b) $10,000 (F.S. 627.567).
In plain English
When the whole plan (or your class of it) shuts down, five years of tenure buys you the right to convert — but only up to $10,000.
Exam tip
Two different conversion triggers, two different rules: your job ends → 31 days to convert; the policy/class ends → 5 years insured required.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms