If a business owner decides to let their Group Life policy lapse, what must be done regarding employee notification?

The correct choice emphasizes the responsibility of the employer to ensure that employees are notified when a Group Life policy lapses. This requirement is important because employees have vested interests in their life insurance coverage, which is often a significant part of their benefits package.

Under Florida law, employers must inform employees about changes to their insurance coverage, including policy cancellations or lapses. Without this notification, employees may be left unaware of the loss of their life insurance protections, which could have serious implications for their financial planning and security.

The option that states that only the insurance company needs to notify employees overlooks the employer's obligation to communicate directly with their staff, which is vital for ensuring transparency and trust. The choice indicating that notification is optional misrepresents the necessity of communication regarding benefits changes, which is a standard practice. Lastly, suggesting that employees will be informed automatically by the policy system underestimates the importance of proactive communication from the employer. Employers play a crucial role in ensuring that their employees are well-informed about their benefits, including any changes or lapses in insurance coverage.