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Escheating Life Insurance Death Benefits - Florida

When is an Insurer Obligated to Escheat Life Insurance Death Benefits?

Apparently, Florida’s Department of Financial Services (“DFS”) got it wrong. In early August, Florida’s First District Court of Appeal reversed DFS’ ruling under Florida’s Disposition of Unclaimed Property Act (the “Act”) that, escheatment is triggered upon an insured’s date of death. Thrivent Financial for Lutherans filed a petition for a declaratory statement from DFS arising out of an unclaimed property audit initiated by DFS (Thrivent Fin. for Lutherans v Fla. Dep’t of Fin. Servs.), leading to the appeal court’s reversal of DFS’ ruling.

Click here to read the appeal court’s reasoning.

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