By: Jason L. Perez
Department Authorized Insurance Education Provider
⭐️⭐️⭐️⭐️⭐️ | The Insurance School .com
Florida Insurance Pre-Licensing Course
Episode Three
DFS | Division of Unclaimed Property
iLaw Episode THREE (a)
DFS | Division of UNCLAIMED Property
CFO | Enforcing “FAIR” Settlement Practices.
In this Episode we’ll discuss…
– What constitutes Unclaimed Property?
– [ Define ] Collateral, Assignment,
– 
What is Mortgage Insurance?
– What is the PURPOSE of Florida’s DFS?
National Association of Insurance Commissioners – NAIC.
DFS | Department of Financial Services
Division of Unclaimed Property
To better understand the purpose of the Division of Unclaimed Property, let’s take a quick look into Life Insurance and Annuity industry. Most of us are familiar with the concept of life insurance. In a nutshell, a policyowner dies and a beneficiary get paid.
Pre-Licensing focuses on two types of life insurance policies. The most inexpensive version of life insurance is called a TERM policy. These policies only provide a death benefit for a specified period. Since they’re issued with an expiration date, they’re classified as TEMPORARY.
#Whole Life policies are the Olde School version of permanent life insurance. Universal Life policies are where consumers are today. Regardless of my preference, these two policies DO NOT EXPIRE. In addition to the death benefit, these policies have a #Tax-Favorable CASH VALUE GROWTH element. These life insurance cash value accounts operate just like the IRA Retirement products banks and financial advisors sell.
® [Define] TAX-Favorable = Policy savings / investment account shield policyowners from paying taxes on their gains until their withdrawn.
® [Identify] We’re using Universal Life for this next example because, policyowners are permitted to make CASH WITHDRAWLS from their cash value accounts.
® [Compare] Whole life only allows policyowners to access cash values through LOANS referred to as Living Benefits. If a policyowner withdrew cash from a Whole Life policy’s cash value, they’re SURRENDERING the policy and 100% of the policy’s cash account would be returned (AND) investment gains will be taxed.
Tax-Favorable savings accounts like those associated with permanent life insurance and IRA retirement accounts are designed to help people accumulate more money. One main difference between an IRA and a Universal Life Insurance policy is the Death Benefit.
® IRA Tax-Favorable accounts are designed to accumulate FUNDS for RETIREMENT. These accounts are hosted by banks and other investment type entities.
ANNUITIES are investment accounts hosted by a LIFE insurance company. In its purest form, an annuity provides account owners with an INCOME for LIFE. The accumulation method associated with IRA’s and Annuities are similar. In both instances, account owners deposit money into tax-favorable investment accounts. Funds grow untaxed until they’re accessed.
An investigation into life insurer settlement practices showed, this lopsided approach to settling a contract was an industry wide problem. Former Chief Financial Officer (Jeff Atwater) alongside the Florida Office of Insurance Regulation and the Attorney General Pam Bondi made Florida the FIRST STATE to adopt regulatory settlement guidelines.
Our CFO’s actions sparked the creation of a task force. When the National Association of Insurance Commissioners (NAIC) joined the cause, a multi-state examination process started. Public hearings to discuss industry settlement standards were held in Florida and California.
Today, insurers are REQUIRED to take appropriate measures to locate beneficiaries. When a beneficiary can’t be found, the insurer must remit the benefit to the DFS. Once the benefit has been registered with the Bureau of Unclaimed Property, it’s searchable and easy to access.
« Florida, California, Illinois, North Dakota, New Hampshire, & Pennsylvania examined the 40 largest insurance groups which comprised of 92% of the market.
« Florida has regulatory settlement agreements with 25 life insurance companies.
« Nationally the revision of settlement practices has resulted in over 7.3 Billion dollars being returned to beneficiaries and over 2.8 Billion to the states.
To search unclaimed property, go to,
*A few years ago, I searched my name and found a $110 electricity security deposit from my college days. A few years later almost $300 more miscellaneous money found its way home.
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