Life · Chapter 8 · Eligibility & Underwriting
Natural Group
Definition
A group formed for a purpose OTHER than buying insurance — coverage must be incidental to why the group exists. Insurers will not write a group organized just to purchase insurance. Florida sets no single minimum size for group life — the number depends on the group type: 5 persons for a miscellaneous "additional group" (F.S. 627.5565), 5 individuals per employer unit for trustee groups (F.S. 627.555), and 100 contributing members before a contributory association policy can be placed in force (F.S. 627.5567). Employee groups (F.S. 627.552) have no statutory minimum at all.
Exam tip
"Can a club formed to buy cheap life insurance get a group policy?" → NO. Insurance must be a side benefit, not the group's reason for existing. ⚠️ Course material often says "about 10 members." Florida's statute never says 10 — if a question cites a Florida section, the numbers are 5 / 5-per-employer / 100.
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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