Florida Law Allows Insurance Policies for Paid Family Leave

Florida has enacted a law that permits life insurance issuers to transact paid family leave insurance. The law took effect on May 25, 2023.

Qualifying Events

Paid family leave insurance may cover leave from work taken by an employee for any of the following circumstances:

• Caring for a family member with a serious health condition;
• Bonding with the employee’s child during the first 12 months after the child’s birth or placement for adoption or foster care;
• Addressing a qualifying military exigency as interpreted under the federal Family and Medical Leave Act;
• Caring for a family member who was injured in the line of duty while serving in the U.S. armed forces; or
• Caring for a family member or other leave as specified in the policy.

Types of Policies Permitted

Family leave insurance may be purchased by employers as an amendment or rider to a group disability income policy, included in a group disability income policy or issued as a separate group insurance policy.

Required Terms

Paid family leave insurance policies must specify the details and requirements of all qualifying events; the length and amount of benefits available for each covered circumstance, which must be at least two weeks; the conditions of any waiting periods; the definition of and method for calculating income on which benefits will be issued; and any income offsets. The law also specifies certain
permissible limitations, exclusions and reductions on eligibility for benefits.

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.