Florida Statutes do not include a specific deadline for life insurance companies to pay death benefits upon proof of death of an insured. However, Florida Statutes Section 627.4615 does require life insurance companies to begin paying interest on the benefits from the date the insurer receives written notice of an insured’s death. If a life insurance company fails to pay the benefits within a short period of time after notice, a substantial amount of interest may accumulate. Section 627.4615 provides: “Interest payable on death claim payments.—When a policy provides for payment of its proceeds in a lump sum upon the death of the insured, the payment must include interest, at an annual rate equal to or greater than the Moody’s Corporate Bond Yield Average-Monthly Average Corporate as of the day the claim was received, from the date the insurer receives written due proof of death of the insured. If the method of calculating such index is substantially changed from the method of calculation in use on January 1, 1993, the rate must not be less than 8 percent.” Currently, the Moody’s monthly average of the composite yield on seasoned corporate bonds is approximately 4% (assuming Moody’s method of calculation has not substantially changed since 1993).
Joel Ewusiak represents beneficiaries who are seeking payment of their rightful share of death benefits owed under life insurance policies. Please contact Joel for legal assistance with your specific dispute.