Life · Chapter 8 · Eligibility & Underwriting
Group Underwriting
Definition
The insurer underwrites the group's characteristics — size, participation, purpose, persistency — rather than each member. Members are normally issued without individual evidence of insurability, but Florida lets the policy reserve that right: the contract must set out the conditions, if any, under which the insurer may require evidence of individual insurability (F.S. 627.562), and a noncontributory plan may exclude anyone whose evidence is unsatisfactory (F.S. 627.552(2)). Adverse selection is otherwise controlled by participation requirements and the law of large numbers.
In plain English
The insurer sizes up the whole team, not each player. Good risks outweighing bad ones is the whole bet.
Exam tip
"Group members are never individually underwritten" is a generalization, not a rule. Late enrollees, amounts above the guaranteed-issue limit, and any condition the policy itself spells out under F.S. 627.562 can all trigger evidence of insurability.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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