Bill > H0261

This bill establishes comprehensive restrictions on employer-owned life insurance policies in Florida, defining such policies as those owned by or payable to an employer on an employee's life. The legislation permits employers to purchase life insurance policies only for "key persons" - senior executives or managers whose death would cause significant financial harm - under strict conditions, including obtaining the key person's informed written consent, providing notice to their spouse or estate, limiting the number of policies to five, capping death benefits at five times the person's average annual compensation, and addressing policy ownership upon employment termination. The bill prohibits employers from purchasing life insurance policies for rank-and-file employees, declaring such policies void against public policy. Employers must disclose policy details to key persons and file notices with the Office of Insurance Regulation, which will maintain a public registry. The bill also imposes significant tax and financial penalties: premiums and related expenses will not be tax-deductible, death benefits will be subject to corporate income tax unless paid to the employee's estate, and employers face potential civil penalties up to five times the death benefit collected for violations. Insurers can be fined up to $1 million and risk losing their insurance license for knowingly issuing non-compliant policies. The law will apply to new policies issued after July 1, 2026, with retroactive restrictions on existing policies unless specific opt-out conditions are met.

Business and Industry

https://www.flsenate.gov/Session/Bill/2026/261