2.1 Florida Life Insurance Policy Requirements

Florida law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization.

Free Look Period

Florida provides a free look period for life insurance policies:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Florida's standard 14-day free look is different from some states that have 10-day or 30-day periods. Replacements get 21 days.

Incontestability Clause

Florida requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Florida-Specific Rules

• Incontestability period begins from the date of issue
• If policy lapses and is reinstated, a new 2-year period begins for statements in the reinstatement application
• Does not apply to disability or accidental death benefit provisions

Suicide Clause

Florida limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered like any other death
• If policy is reinstated, new 2-year period may apply
• Only applies to death benefit, not accidental death riders

Grace Period

Florida requires a minimum grace period for premium payments:

During the grace period:

• Policy remains in force
• Death benefit still payable
• Past due premium deducted from benefit if death occurs

Beneficiary Protections

Florida has specific beneficiary protection laws:

Death Master File Search

Florida law (Section 717.107) requires life insurers to:

• Cross-check policies against the Social Security Death Master File
• Conduct searches at least semi-annually
• Initiate contact with beneficiaries upon confirmed death
• Cannot charge fees for locating beneficiaries

Unclaimed Benefits

If beneficiaries cannot be found:

• Death benefits are not forfeited
• Must be reported as unclaimed property
• Escheat to Florida CFO's Office
• Beneficiaries can still claim from state indefinitely

Policy Delivery Requirements

Florida requires:

• Policy delivered within 45 days of application approval
• Delivery must include policy summary
• Receipt must be documented
• Electronic delivery permitted with consent

Standard Policy Provisions

All Florida life policies must contain: