What Florida law applies to changes to the beneficiary designations of a life insurance policy?

Under Florida law, changes to beneficiary designations under a life insurance policy must strictly comply with the policy’s conditions. Protective Life Ins. Co. v. Walker, No. 8-09-cv-363-T-EAJ, 2010 WL 11628819, *2 (M.D. Fla. Jan. 7, 2010) (quoting Brown v. Di Petta, 448 So. 2d 561, 562 (Fla. 3d DCA 1984)). The doctrine of strict compliance is one that protects insurance companies and rejects the view that equitable arguments can prevail over a contract’s express terms. U.S. Life Ins. Co. in the City of N.Y. v. Logus Mfg. Corp., 845 F. Supp. 2d 1303, 1314−15 (S.D. Fla. 2012). An individual claiming to be a substitute beneficiary under a life insurance policy bears the burden of proving strict compliance. Lincoln Benefit Life Co. v. LaFrance, No. 6:16-cv-538-Orl-40TBS, 2017 WL 4861308, at *3 (M.D. Fla. Sept. 18, 2017).

To establish strict compliance, one must show that the insured (1) manifested to the insurer a clear intent of a desire to change the beneficiary designation and (2) took substantial affirmative steps to effectuate that change. LaFrance, 2017 WL 4861308, at *3 (quoting Logus Mfg. Corp., 845 F. Supp. 2d at 1314). A change of beneficiary will typically be deemed complete when the insured “has taken all steps necessary, and otherwise done all in his power, to effect a change of beneficiary, and all that remains to be done is some ministerial duty” on the part of the insurer. Logus Mfg. Corp., 845 F. Supp. 2d at 1315 (quoting Sheppard v. Crowley, 55 So. 841, 842 (Fla. 1911)).

Courts applying Florida law have recognized life insurance companies’ authority to reject change of beneficiary forms deemed defective. See, e.g., Logus Mfg. Corp., 845 F. Supp. 2d at 1316−17 (finding insurer’s rejection of change of beneficiary form based on insured’s failure to include his corporate title was objectively reasonable); Walker, 2010 WL 11628819, at *2 (acknowledging insurer’s rejection of change of beneficiary form due to appearing altered).

Joel Ewusiak frequently represents beneficiaries sued in federal interpleader actions by life insurance companies who seek to deposit contested life insurance benefits with the court. Please contact Joel for legal assistance with your specific matter.