Proposed Restrictions on Employer-Owned Life Insurance (SB 894)

The Frame

What this does

The bill would have established new legal rights for employees to opt out of company-owned life insurance and created a for families to sue if companies violated these rules, while imposing up to $1 million in fines on insurers for non-compliance.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Rank-and-file employees

The bill would have prohibited employers from holding life insurance policies on these individuals.

Key persons

These individuals would have been required to provide informed, written consent for policies and would have been granted the right to opt out.

Insurers

Insurers would have been required to file notices with the state and would have faced fines of up to $1 million for non-compliant policies.

What changed

Last recorded activity March 13, 2026.

What's next

Introduced.

Summary

This bill would have regulated 'dead peasant' insurance policies, where companies take out life insurance on employees, by banning policies on rank-and-file staff and setting strict consent and disclosure rules for key executives. It would have also eliminated tax deductions for these policies and subjected death benefits to corporate income tax.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is 'employer-owned life insurance'?

It is a life insurance policy owned by or payable to an employer on the life of a current or former employee, often referred to as company-owned or corporate-owned life insurance.

Can an employer still take out a life insurance policy on me?

Under this bill, employers could only insure 's' (senior executives, partners, or managers) with written consent, and they would be prohibited from insuring rank-and-file employees.

What happens if a company violates these rules?

The policy would be void, the employer could face civil penalties up to five times the death benefit, and the employee's family would have the right to sue to recover the value of the benefit.

Why It Matters

The bill would have established new legal rights for employees to opt out of company-owned life insurance and created a for families to sue if companies violated these rules, while imposing up to $1 million in fines on insurers for non-compliance.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

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Taxation of Corporate Insurance

The bill explicitly sought to remove tax advantages for employer-owned life insurance by making premiums non-deductible and subjecting death benefits to corporate income tax.

Florida Legislature