Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesMedium
A Florida life insurance policy includes a provision stating that if the insured commits suicide within a specified period from the policy's issue date, the insurer will only return the premiums paid, without interest. What is the maximum suicide exclusion period allowed under Florida law?
- A6 months
- B3 years
- C2 years
- D1 year
Show answer & explanationAnswer & explanation
Correct answer: C. 2 years
Florida law, like most states, allows life insurance policies to include a suicide exclusion clause for a maximum of two years from the policy's issue date. If suicide occurs within this period, only premiums paid are returned.
Why the other options are wrong
- A. This is incorrect; 6 months is too short for the maximum suicide exclusion period in Florida.
- B. This is incorrect; 3 years exceeds the maximum suicide exclusion period allowed by Florida law.
- D. This is incorrect; while some policies may have a one-year exclusion, Florida law allows for a maximum of two years.
Suicide Exclusion Clause
A provision in a life insurance policy that states if the insured commits suicide within a specified period (typically 2 years) from the policy's issue date, the insurer will only return the premiums paid.
- Limits insurer's liability for early suicide
- Period starts from policy issue date
- After period, suicide is covered like any other death
Memory trick: Two years for the suicide clause, after that, no more legal pause.