{"id":6815,"date":"2026-10-28T00:10:31","date_gmt":"2026-10-28T00:10:31","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/underwriting-questions-key-person-insurance\/"},"modified":"2026-10-31T06:29:38","modified_gmt":"2026-10-31T06:29:38","slug":"underwriting-questions-key-person-insurance","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/underwriting-questions-key-person-insurance\/","title":{"rendered":"Key Person Insurance Underwriting Questions in Florida"},"content":{"rendered":"\n
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Key Person Insurance | Florida<\/p>

Know the Underwriting Questions Before You Apply for Key Person Insurance<\/h1>

A plain-language guide from NR CPAs & Business Advisors to the health, business and ownership questions insurers ask when a Florida business buys key person coverage.<\/p>

Call us today to set up a coverage review<\/a><\/div>
Call us today to set up a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 27, 2026<\/p>\n\n

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Underwriting questions for key person insurance ask about the health and habits of the person being insured. The insurer is insuring a life, so its application focuses on that individual, not on the company’s finances. This page explains the main question groups you’re likely to see, why accurate answers matter, and how to prepare.<\/p>\n

Why Insurers Ask Health Questions on a Key Person Policy<\/h2>\n

Insurers ask health and lifestyle questions because they insure a person’s life. Key person insurance is life coverage a business buys on an important owner, officer, or employee. The company is usually the owner and beneficiary of the policy.<\/p>\n

The insurable interest rule matters here. Under Fla. Stat. \u00a7 627.404<\/a>, a business may insure a key employee or key person only if that person consents in writing before the insurance is bought. The business also may not retaliate against a key person who refuses consent.<\/p>\n

The exact questions come from each insurer’s own application form. Wording varies by insurer, so the form in front of you controls. This page covers three groups: medical history, lifestyle and habits, and business details. It ends with accuracy and next steps.<\/p>\n\n

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Not sure what your next step is?<\/h3>

Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a coverage review<\/a><\/div>
Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n

Medical History Questions on the Application<\/h2>\n

Medical questions usually cover current conditions, past diagnoses, hospital stays, surgeries, and ongoing treatment. Many forms also ask about prescribed medications and recent doctor visits or tests. The wording differs from one form to the next, so read each question as written.<\/p>\n

Answers should match the medical records. A medication change or a recent test can be easy to forget. Write down dates and names before you fill out the form.<\/p>\n

A “yes” answer often leads to more steps. The insurer may ask follow-up questions, request records from a doctor, or rate the application differently. The result depends on the insurer’s underwriting rules and the facts in the file.<\/p>\n

Lifestyle, Habits, and Driving Questions<\/h2>\n

Lifestyle questions commonly ask about tobacco and nicotine use, including recent and past use. Many forms also ask about alcohol and drug use and the applicant’s driving record. Some forms ask about hazardous hobbies, aviation, or foreign travel.<\/p>\n

Each insurer defines terms like “tobacco” and “recent” in its own form. Check those definitions before you answer. Answer from your actual history, not from what you think the insurer wants to hear.<\/p>\n

Applications may also ask about family medical history. If you don’t know a detail, say so on the form. A noted gap is better than a guess.<\/p>\n

Business, Ownership, and Coverage-Amount Questions<\/h2>\n

Business questions cover the company, the insured person’s role and ownership, and the reason the coverage is requested. Key person insurance<\/a> compensates a business for financial losses caused by the death or disability of a key employee, according to the Insurance Information Institute’s key employee coverage guide<\/a>.<\/p>\n

The requested coverage amount is often tied to the person’s documented financial role in the business. The file may ask how that amount was determined. Keep a short written explanation of the calculation.<\/p>\n

Business details should match the company’s records. Formation documents and ownership schedules are the usual references. If the policy relates to a buy-sell arrangement, the buy-sell agreement insurance page explains how the two fit together.<\/p>\n\n

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Have questions about what happened?<\/h3>

Ask our team directly. Tell us what you are dealing with and we will explain how the process works from here.<\/p>

Talk to our team<\/a><\/div>
Talk to our team<\/a><\/div><\/div>\n<\/div>\n

Why Accurate Answers Matter and What Issue May Depend On<\/h2>\n

Every answer on a life insurance application should be complete and accurate. The application becomes part of the record the insurer relies on. Errors can cause problems later, even years after the policy starts.<\/p>\n

Florida law limits one kind of later challenge. Under Fla. Stat. \u00a7 627.455<\/a>, a life policy must be incontestable after it has been in force during the insured’s lifetime for 2 years from its date of issue. Fla. Stat. \u00a7 627.455<\/a> reads: “Every insurance contract shall provide that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of 2 years from its date of issue except for nonpayment of premiums and except, at the option of the insurer, as to provisions relative to benefits in event of disability and as to provisions which grant additional insurance specifically against death by accident or accidental means.” Under Fla. Stat. \u00a7 627.455<\/a>, every insurance contract must provide that the policy becomes incontestable after it has been in force during the insured’s lifetime for 2 years from its date of issue, with exceptions that include nonpayment of premiums. Fla. Stat. \u00a7 627.455<\/a> reads: “Every insurance contract shall provide that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of 2 years from its date of issue except for nonpayment of premiums and except, at the option of the insurer, as to provisions relative to benefits in event of disability and as to provisions which grant additional insurance specifically against death by accident or accidental means.”<\/p>\n

Age errors follow a separate rule. Under Fla. Stat. \u00a7 627.456<\/a>, if the age or sex of the insured, or of any other individual considered in determining the premium or benefit, was misstated, the benefit is what the premium would have bought at the correct age or sex, calculated at the insurer\u2019s rate at date of issue.<\/p>\n

Issue may depend on insurability. That means the insurer decides after underwriting whether to issue coverage and on what terms. The business’s need for coverage does not decide that alone. Fully underwritten coverage asks health questions, and the answers can affect the decision.<\/p>\n\n

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Preparing for a Coverage Review with NR CPAs<\/h2>\n

A common situation: a co-owner or key employee has a recent diagnosis, a procedure, or a medication change. That person isn’t sure what to report, and the business wants the application done correctly.<\/p>\n

Gather these items before you apply:<\/p>\n