The proposed bill establishes new regulations regarding employer-owned life insurance policies in Florida, specifically under the newly created 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, provided they obtain informed consent from the key person, notify their spouse or next of kin, and adhere to specific limits on the number of policies and the death benefit amounts. Additionally, it prohibits employer-owned life insurance policies for rank-and-file employees, declaring such policies void as against public policy.

The bill also mandates that insurers notify the Office of Insurance Regulation about these policies, which will maintain a public registry and publish annual reports. It specifies that premiums and related expenses for these policies are not tax-deductible, and any death benefits received by employers will be subject to corporate income tax, with certain exceptions. Violations of the regulations can result in significant civil penalties for employers and administrative fines for insurers. The bill is set to take effect on July 1, 2026, with certain provisions applying retroactively to existing policies unless the insured employee opts to maintain their policy with designated beneficiaries.