Developments in Life Insurance in Florida

Carlton Fields/Jordan Burt reports on Florida Life Insurance Developments, noting that life insurers will find the following Florida decisions regarding the state’s unclaimed property law and false claims act important:

  • Total Asset Recovery Services, LLC v. Metlife, Inc. and Prudential Financial Inc., Case no. 2010-CA-3719 (Fla. 2d Jud. Cir., Aug. 20, 2013), aff’d per curiam sub nom., Case no. 1D13-4420 (Fla. App., 1 Dist., Sept. 19, 2014) (“TARS”)
  • Thrivent Financial for Lutherans v. State, Department of Financial Services, 2014 WL 3819476 (Fla. App., 1 Dist., Aug. 5, 2014) (“Thrivent”)

The article notes that TARS significantly limits the ability of qui tam plaintiffs to pursue reverse false claims under the Florida False Claims Act against insurers for allegedly failing to escheat life insurance benefits.

It also notes that, like TARS, Thrivent holds that, under Florida’s unclaimed property law, life insurance funds are automatically “due and payable” at the time of the insured’s death, and that the dormancy period for an insurer’s obligation to escheat does not begin to run until the insurer receives a proof of death, until the insurer otherwise knows the insured has died, or until the insured reached, or should have reached, the limiting age under the policy.

Read more at Developments in Life Insurance in Florida | Carlton Fields Jordan Burt – JDSupra.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.