FL H0501

Amends section 518.112 to add two delegable investment functions for fiduciaries: determining whether life insurance contracts comply with section 627.404 and investigating the financial strength of life insurance companies.

Revises notice requirements for delegation of investment functions, replacing specific mailing procedures with references to general notice provisions in Florida Statutes chapters 731 and 736.

Creates section 736.0902 to exempt trustees from duties regarding life insurance acquired on qualified persons (insureds or their spouses who funded the policy), including determining investment suitability, exercising policy options, diversifying holdings, and investigating insured health or finances.

Provides that trustees are not liable to beneficiaries for losses on life insurance contracts subject to section 736.0902, unless the trustee had knowledge of insurable interest violations or improper ownership transfer arrangements at inception.

Prohibits trustees from receiving compensation for services related to life insurance policies subject to the exemption, and excludes from the exemption any policies purchased from trustee affiliates or where the trustee receives commissions unless duties are delegated.