Life · Chapter 8 · Conversion
Conversion Privilege (Group → Individual)
Definition
On leaving the group (quit, laid off, terminated), an employee may convert group coverage to an individual policy on any form the insurer then customarily issues — in practice a permanent form such as whole life, because the group policy is allowed to exclude term — by applying and paying the first premium within 31 days, with no evidence of insurability. Premium is the insurer's customary rate for that form, that class of risk, and the insured's attained age (F.S. 627.566). Coverage continues under the group policy during the 31 days: if the person dies before converting, the group policy pays.
In plain English
You get one month to trade your work coverage for your own permanent policy, no health questions asked — and you're still covered while you decide.
Exam tip
Exam shorthand is "convert to whole life at attained age." The Florida statute actually says any form the insurer customarily issues — the group policy may exclude term (F.S. 627.566). Same practical answer, but don't be thrown if an option says "a permanent form other than whole life." Death on day 20, unconverted? The GROUP policy pays.
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