Thrivent Fin. for Lutherans v. State, 1D13–5299.

• Court: Court of Appeal of Florida (US)
• Citation: 145 So.3d 178
• Docket Number: No. 1D13–5299.,1D13–5299.
• Parties: THRIVENT FINANCIAL FOR LUTHERANS, Appellant, v. STATE of Florida, DEPARTMENT OF FINANCIAL SERVICES, Appellee.
• Decision Date: 05 August 2014

145 So.3d 178

THRIVENT FINANCIAL FOR LUTHERANS, Appellant,
v.
STATE of Florida, DEPARTMENT OF FINANCIAL SERVICES, Appellee.

No. 1D13–5299.

District Court of Appeal of Florida,
First District.

Aug. 5, 2014.

[145 So.3d 179]

Timothy G. Schoenwalder of Blank & Meenan, P.A., Tallahassee, and Andrew B. Kay of Cozen O'Connor, Washington, D.C., for Appellant.

Wendy L. Furman of Pett Furman, PL, Boca Raton, and Jason P. Gosselin and Laura M. Zulick of Drinker Biddle & Reath LLT, Philadelphia, PA, for American Council of Life Insurers, Amicus Curiae in support of Thrivent Financial for Lutherans.

Richard T. Donelan, Jr., Chief Counsel, and Paul C. Stadler, Jr., Assistant General Counsel, Tallahassee, for Appellee.

Steve Burgess, Insurance Consumer Advocate and Michael Kliner, Senior Attorney, Office of the Insurance Consumer Advocate, Florida Department of Financial Services, Amicus Curiae in support of Florida Department of Financial Services.

WOLF, J.

Appellant, Thrivent Financial for Lutherans (Thrivent), appeals from a declaratory statement issued by the Department of Financial Services (DFS) interpreting section 717.107, Florida Statutes (2013). We find DFS' interpretation of section 717.107 is clearly erroneous because it ignores the plain language of the statute. Accordingly, we reverse.

[145 So.3d 180]

I. Relevant Statutes

Section 717.107, which is part of the Florida Disposition of Unclaimed Property Act, requires insurers to remit to DFS any life insurance funds that remain “unclaimed” for a certain period of time—referred to as the “dormancy period”—after the funds become “due and payable.” DFS may impose penalties and charge interest on funds that are not reported and paid to DFS as required by chapter 717. See § 717.134, Fla. Stat. Section 717.107 states in relevant part:

(1) Funds held or owing under any life or endowment insurance policy or annuity contract which has matured or terminated are presumed unclaimed if unclaimed for more than 5 years after the funds became due and payable as established from the records of the insurance company holding or owing the funds, but property described in paragraph (3)(b) is presumed unclaimed if such property is not claimed for more than 2 years. The amount presumed unclaimed shall include any amount due and payable under s. 627.4615.

...

(3) For purposes of this chapter, a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the company is deemed matured and the proceeds due and payable if:

(a) The company knows that the insured or annuitant has died; or

(b)1. The insured has attained, or would have attained if he or she were living, the limiting age under the mortality table on which the reserve is based;

2. The policy was in force at the time the insured attained, or would have attained, the limiting age specified in subparagraph 1.; and

3. Neither the insured nor any other person appearing to have an interest in the policy within the preceding 2 years, according to the records of the company, has assigned, readjusted, or paid premiums on the policy; subjected the policy to a loan; corresponded in writing with the company concerning the policy; or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the company.

...

(6) Notwithstanding any other provision of law, if the company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within 4 months after the death, the company shall take reasonable steps to pay the proceeds to the...