Sunday, March 6, 2011

"Bad faith" reform bills filed

Senate and House sponsors have filed comprehensive bills to reform Florida's so-called "bad faith" laws.  The Senate bill was filed by Senator John Thrasher.  The House Bill was filed by Representative Dennis Baxley.  Here are links to the bills and a summary:

SB 1592 Civil Remedies Against Insurers -- by Thrasher

HB 1187 Civil Remedies Against Insurers -- by Baxley - (identical)

  • Revises provisions of Section 624.155, Florida Statutes, relating to civil actions against insurers.
  • Revises grounds for bringing action based on an insurer's failure to accept an offer to settle.
  • Revises who may bring an action and the requirements for bringing an action.
  • Releases the insured if an insurer offers to settle a third-party claim within a specified time.
  • Provides the insurer an affirmative defense if a third-party claimant or insured fails to cooperate with the insurer.
  • Insurer is not liable for two or more claims that exceed policy limits if it files an interpleader action or makes policy limits available under arbitration.
  • Specifies responsibility for payment of liens.
  • Provides that an insurer is not liable for amounts in excess of policy limits if makes timely payment of appraisal amount.
  • Refusals to act by insurer are not presumptive evidence of bad faith.
  • Revises requirements relating to preaction notice of civil action sent to Department of Financial Services & the insurer.
  • Specifies work-product protection requirements.
  • Prohibits award of fees & costs from including any form of multiplier or enhancement.
  • Provides that provisions of act replace common law.
  • Revises & limits damages that are recoverable from an uninsured motorist carrier in civil action.
  • Provides for severability.
This summary was prepared by Perry Cone and is posted at

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