Florida Statutes 626.798 – Life agent as beneficiary; prohibition
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(1) A life agent may not place or modify life insurance coverage with a life insurer covering the life of a person who is not a family member of the life agent when the life agent or a family member of the life agent is the named beneficiary under the life insurance policy, or the modification names the life agent or a family member of the life agent the named beneficiary, unless the life agent or family member of the life agent has an insurable interest in the life of such person.
(2) A life agent or a family member of the life agent may not serve as a trustee or guardian or accept authority to act under a power of attorney for any person the life agent conducts insurance business with, unless he or she is:
(a) A family member of the person or insured; or
Terms Used In Florida Statutes 626.798
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- person: includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. See Florida Statutes 1.01
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
(b)1. Acting as a fiduciary;
2. Licensed as a certified public accountant under s. 473.308; and
(3) For the purposes of this section:
(a) “Family member” means an individual who is related to the life agent as father, mother, son, daughter, brother, sister, grandfather, grandmother, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister.
(b) “Insurable interest” means that the life agent or family member of the life agent has an actual, lawful, and substantial economic interest in the safety and preservation of the life of the insured or a reasonable expectation of benefit or advantage from the continued life of the insured.