Bill Amendment: FL S1334 | 2020 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Financial Services
Status: 2020-03-14 - Died in Banking and Insurance [S1334 Detail]
Download: Florida-2020-S1334-Senate_Committee_Amendment_452858_to_Amendment_632742_.html
Bill Title: Financial Services
Status: 2020-03-14 - Died in Banking and Insurance [S1334 Detail]
Download: Florida-2020-S1334-Senate_Committee_Amendment_452858_to_Amendment_632742_.html
Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 1334 Ì452858RÎ452858 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Brandes) recommended the following: 1 Senate Amendment to Amendment (632742) (with title 2 amendment) 3 4 Delete lines 145 - 187 5 and insert: 6 Section 5. Subsections (1) and (3) of section 624.155, 7 Florida Statutes, are amended, and subsection (10) is added to 8 that section, to read: 9 624.155 Civil remedy.— 10 (1) Any person may bring a civil action against an insurer 11 when such person is damaged: 12 (a) By a violation of any of the following provisions by 13 the insurer: 14 1. Section 626.9541(1)(i), (o), or (x); 15 2. Section 626.9551; 16 3. Section 626.9705; 17 4. Section 626.9706; 18 5. Section 626.9707; or 19 6. Section 627.7283. 20 (b) By the commission of any of the following acts by the 21 insurer: 22 1. Not attempting in good faith to settle claims when, 23 under the totality ofallthe circumstances, it could and should 24 have done so, had it acted fairly and honestly toward its 25 insured and with due regard for her or his interests; 26 2. Making claims payments to insureds or beneficiaries not 27 accompanied by a statement setting forth the coverage under 28 which payments are being made; or 29 3. Except as to liability coverages, failing to promptly 30 settle claims, when the obligation to settle a claim has become 31 reasonably clear, under one portion of the insurance policy 32 coverage in order to influence settlements under other portions 33 of the insurance policy coverage. 34 35 Notwithstanding paragraphs (a) and (b)the provisions of the36above to the contrary, a person pursuing a remedy under this 37 section need not prove that such act was committed or performed 38 with such frequency as to indicate a general business practice. 39 (3)(a) As a condition precedent to bringing an action under 40 this section, the department and the authorized insurer must 41 have been given 60 days’ written notice of the violation. Notice 42 to the authorized insurer must be provided by the department to 43 the e-mail address designated by the insurer under s. 624.422. 44 (b) The notice shall be on a form provided by the 45 department and shall state with specificity the following 46 information, and such other information as the department may 47 require: 48 1. The statutory provision, including the specific language 49 of the statute, which the authorized insurer allegedly violated. 50 2. The facts and circumstances giving rise to the 51 violation. 52 3. The name of any individual involved in the violation. 53 4. Reference to specific policy language that is relevant 54 to the violation, if any. If the person bringing the civil 55 action is a third party claimant, she or he shall not be 56 required to reference the specific policy language if the 57 authorized insurer has not provided a copy of the policy to the 58 third party claimant pursuant to written request. 59 5. A statement that the notice is given in order to perfect 60 the right to pursue the civil remedy authorized by this section. 61 (c) No action shall lie if, within 60 days after the 62 insurer receivesfilingnotice from the department in accordance 63 with this subsection, the damages are paid or the circumstances 64 giving rise to the violation are corrected. 65 (d) The authorized insurer that is the recipient of a 66 notice filed pursuant to this section shall report to the 67 department on the disposition of the alleged violation. 68 (e) The applicable statute of limitations for an action 69 under this section shall be tolled for a period of: 70 1. Sixty65days after the insurer receives from the 71 departmentby the mailing ofthe notice required by this 72 subsection. 73 2. Sixty days after the date appraisal is invoked pursuant 74 to paragraph (f)or the mailing of a subsequent notice required75by this subsection. 76 (f) A notice required under this subsection may not be 77 filed within 60 days after appraisal is invoked by any party in 78 a residential property insurance claim. 79 (10) The provisions of this subsection apply to an action 80 against a motor vehicle insurer for third-party bad faith under 81 this chapter or at common law. 82 (a) It is a condition precedent to such action that the 83 insurer first receive written notice that the insurer has 84 violated its duty to act in good faith toward its insured. A 85 notice shall state with specificity the alleged violation and 86 the facts and circumstances giving rise to the violation. The 87 insurer’s receipt of written notice does not preclude subsequent 88 written notices that an insurer violated its duty to act in good 89 faith toward its insured. The insurer shall save and document 90 any notice. 91 (b) In handling claims, an insurer stands as a fiduciary 92 for its insured. Accordingly, an insurer shall act in good faith 93 toward its insured throughout the entirety of the claim. 94 (c) A bad faith failure to settle means an insurer’s 95 failure to settle a claim when, under the totality of the 96 circumstances, it could and should have done so had it acted 97 fairly, honestly, and with due regard for the interests of an 98 insured. The claimant has the burden to establish through the 99 greater weight of the evidence that specific conduct by the 100 insurer is the cause or substantial cause of the insurer’s bad 101 faith failure to settle. 102 1. An insurer’s negligent actions alone are insufficient to 103 establish the insurer’s bad faith failure to settle, but an 104 insurer’s negligent actions are relevant when considering the 105 totality of the circumstances. 106 2. The actions or inactions of the insured or claimant are 107 relevant in an action for a bad faith failure to settle. An 108 insurer may assert as a defense that the conduct of the insured 109 or claimant caused, in whole or in part, the failure to settle 110 the claim. 111 (d) No action against a motor vehicle insurer for third 112 party bad faith shall lie if, within 45 days after the motor 113 vehicle insurer receives notice pursuant to paragraph (a), the 114 insurer cures the circumstances giving rise to the alleged 115 breach of duty of good faith to the insured. A third party may 116 proceed with a bad faith action against the insurer if the 117 insurer fails to cure the violation within this period. 118 (e) Paragraph (d) does not create a duty that the insurer 119 must offer policy limits or the amount of a demand that is less 120 than policy limits within 45 days after it receives notice under 121 paragraph (a). However, the absence of such offer may be 122 considered as part of the totality of the circumstances in 123 determining whether the insurer in bad faith failed to settle. 124 (f) If two or more third-party claimants in a liability 125 claim make competing claims arising out of a single occurrence 126 which in total exceed the available policy limits of one or more 127 of the insured parties who may be liable to third party 128 claimants, a motor vehicle insurer is not liable beyond the 129 available policy limits for failure to pay all or any portion of 130 the available policy limits to one or more of the third-party 131 claimants if such insurer continues to comply with its good 132 faith duties to its insured throughout the entirety of the 133 claim, including the pendency of an interpleader action filed 134 under the Florida Rules of Civil Procedure within 90 days after 135 receiving notice of the competing claims in excess of the 136 available policy limits. The competing third-party claimants are 137 entitled to a prorated share of the policy limits as determined 138 by the trier of fact. 139 140 ================= T I T L E A M E N D M E N T ================ 141 And the title is amended as follows: 142 Delete line 1281 143 and insert: 144 statute of limitations is tolled; providing 145 applicability; requiring that a civil remedy notice be 146 provided to a motor vehicle insurer before a third 147 party bad faith action is brought against the insurer; 148 specifying requirements for the notice; providing 149 construction relating to the notice; requiring the 150 insurer to save and document any notice; providing 151 construction relating to an insurer’s duty of good 152 faith, a bad faith failure to settle, the claimant’s 153 burden of proof, negligent actions of an insurer, and 154 actions or inactions of the insured or claimant; 155 providing that such bad faith actions are barred if 156 the insurer cures certain circumstances within a 157 certain timeframe; providing that an insurer is not 158 liable beyond policy limits in certain third-party 159 claims if it meets certain conditions; providing that 160 competing third-party claimants are entitled to a 161 prorated share of policy limits as determined by the 162 trier of fact; amending s. 624.307,