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 and the death benefit amount. It prohibits policies covering rank-and-file employees, declaring such policies void as against public policy. Additionally, the bill mandates insurers to notify the Office of Insurance Regulation about these policies, which will maintain a registry and publish annual reports.

The legislation also addresses 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. It includes enforcement measures, allowing for civil penalties against employers who violate the provisions, and grants employees' families a private right of action for recovery of benefits collected in violation of the law. Insurers that knowingly issue non-compliant policies face significant fines and potential suspension of their authority to operate. 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 specified beneficiaries.