FL S0894

Creates new restrictions on employer-owned life insurance (EOLI) policies, limiting coverage to "key persons" (owners, senior executives, directors, officers, partners, or managers) whose death would cause material financial harm to the business

Requires employers to obtain written consent from key persons before purchasing policies, notify the employee's spouse or next of kin within 30 days, and limits policies to five key persons without prior approval from the Office of Insurance Regulation

Caps death benefits at five times the key person's average annual compensation for the preceding three years and requires policy cancellation or transfer upon termination of employment

Prohibits EOLI policies covering rank-and-file employees, declaring such policies void as against public policy, and subjects death benefits to corporate income tax unless paid directly to the employee's estate or family

Establishes penalties including civil liability up to five times the death benefit collected, a private right of action for employees' families, and fines up to $1 million per violation for insurers with possible license suspension or revocation