The proposed bill establishes new regulations regarding employer-owned life insurance policies in Florida, specifically creating Section 627.4635 of the Florida Statutes. It defines key terms such as "employer-owned life insurance," "key person," and "rank-and-file employee." The bill allows employers to purchase life insurance policies covering key persons under strict conditions, including obtaining informed consent from the key person, notifying their spouse or next of kin, and limiting the number of policies to five for the highest-ranking employees. Additionally, it prohibits policies covering rank-and-file employees, declaring such policies void as against public policy. Employers must also provide disclosures about the policies and file notices with the Office of Insurance Regulation, which will maintain a registry and publish annual reports.

Furthermore, the bill outlines tax implications, stating that premiums and related expenses for employer-owned life insurance are not tax-deductible, and death benefits received by employers are subject to corporate income tax unless paid directly to the employee's estate or family. Violations of the regulations can result in significant civil penalties for employers and administrative fines for insurers. The bill mandates the adoption of a standard form to inform key persons about the nature of the policies by October 1, 2026, and applies retroactively to existing policies unless the insured employee opts to maintain the policy with themselves or their family as beneficiaries. The act is set to take effect on July 1, 2026.