Life · Chapter 8 · Group Basics
Employee's Beneficiary Right (Incident of Ownership)
Definition
The employer owns the group policy and holds all ownership rights EXCEPT one: the employee (certificate holder) names and changes the beneficiary. In Florida, employee group life is written "for the benefit of persons other than the employer" (F.S. 627.552) — so the employer is not an eligible beneficiary of the group certificate. Employer-benefiting coverage on an employee's life is a separate arrangement under the insurable-interest statute, F.S. 627.404(2)(b), not a group beneficiary designation.
Exam tip
"Who names the beneficiary in group life?" → the EMPLOYEE, never the employer. This is the employee's "incident of ownership."
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