Florida Life Insurance Disputes
When a life insurance claim is denied or two people claim the same proceeds, Florida law and the policy govern. A key protection is incontestability — after a policy has been in force two years during the insured's life, the insurer generally can't contest it (Fla. Stat. § 627.455). But employer-provided policies are often governed by federal ERISA instead, which changes the rules and the court.
By Find Local Law Editorial Team · Last reviewed: May 25, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. Whether Florida law or federal ERISA governs your policy changes everything — talk to a Florida attorney.
A life insurance dispute usually arises in one of two ways: the insurer denies or delays a claim, or more than one person claims the proceeds.
The two-year incontestability rule
Florida’s most important protection for beneficiaries is incontestability. Under Fla. Stat. § 627.455, a life policy must become incontestable after it has been in force for two years during the insured’s lifetime (other than for nonpayment of premiums). That means an insurer’s window to rescind a policy for an alleged material misrepresentation on the application generally closes after two years. Within that window, application accuracy and “material” misstatements are the battleground.
Beneficiary disputes
- Competing beneficiaries. When two or more people claim the same proceeds, the insurer typically files an interpleader action — depositing the funds with the court and letting a judge decide — which discharges the insurer.
- The slayer rule. Under Fla. Stat. § 732.802, a beneficiary who unlawfully and intentionally kills the insured forfeits the proceeds, which pass as though the killer had died first.
The ERISA threshold question
This is the single most important issue: if the life insurance came through an employer’s benefit plan, it’s usually governed by the federal ERISA law — not Florida insurance law. ERISA generally moves the dispute to federal court, applies its own rules, and (where the plan gives the administrator discretion) can mean a more deferential review of a denial. So before anything else, determine whether ERISA applies.
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Start your free intakeFrequently asked questions
- Can a life insurer deny a claim over a mistake on the application?
- Generally only during the policy's first two years. Under Florida's incontestability statute (Fla. Stat. § 627.455), once a policy has been in force two years during the insured's lifetime, the insurer generally can't contest it — except for nonpayment of premiums.
- What happens if two people both claim to be the beneficiary?
- The insurer often files an 'interpleader' lawsuit, deposits the money with the court, and lets a judge decide who is legally entitled — which discharges the insurer from further liability.
- My life insurance was through my job and the claim was denied — is that different?
- Likely yes. Employer-provided group life insurance is usually governed by the federal ERISA law, not Florida insurance law, which generally means the dispute is heard in federal court under different rules. Whether ERISA applies is the threshold question.
Sources
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