Update on Florida Lawsuit Challenging Constitutionality of DMF Search Legislation

    View Author May 2017

    On May 16, 2017, United Insurance voluntarily dismissed one of its two counts in United Insurance Co. of America v. Jeff Atwater, and now seeks declaratory and injunctive relief from the retroactive application of the amendment on due process grounds alone. The due process claim alleges that the statute adversely affects vested rights, imposes new obligations regarding DMF searches and beneficiary outreach, and imposes additional penalties for failure to perform the new obligations.

    Many life insurance companies are watching this case with great interest, for not only court guidance on the constitutionality of retroactive obligations and penalties, but also regarding the asymmetric application of those provisions.