Bill Text: FL H0427 | 2012 | Regular Session | Introduced


Bill Title: Civil Remedies Against Insurers

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-31 - Unfavorable by Civil Justice Subcommittee, laid on Table; YEAS 7 NAYS 8 [H0427 Detail]

Download: Florida-2012-H0427-Introduced.html
HB 427

1
A bill to be entitled
2An act relating to civil remedies against insurers;
3amending s. 624.155, F.S.; requiring that before
4bringing a common-law bad faith action against an
5insurer, the party bringing the action must first
6provide to the department and insurer prior written
7notification of a specified number of days; requiring
8that a notice relating to the bringing of a common-law
9claim of bad faith must specify the common-law duty
10violated by the insurer; requiring a notice to specify
11the amount of moneys that an insurer has failed to
12tender or pay if the specific statutory or common-law
13based violation includes such failure; providing that
14the circumstances giving rise to certain statutory or
15common-law based violations are corrected by
16specifically described monetary tenders by an insurer;
17providing that either a third-party claimant or
18insured is entitled to a general release under certain
19circumstances; providing that the applicable statute
20of limitations is tolled for a specified period of
21time when certain notices alleging a common-law based
22violation are mailed; revising provisions to conform
23to changes made by the act relating to statutory or
24common-law based actions being brought against
25insurers; providing an effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Subsections (3) and (8) of section 624.155,
30Florida Statutes, are amended to read:
31     624.155  Civil remedy.-
32     (3)(a)  As a condition precedent to bringing an action
33either under this section or based on the common-law claim of
34bad faith, the department and the authorized insurer must have
35been given 60 days' written notice of the violation. If the
36department returns a notice for lack of specificity, the 60-day
37time period shall not begin until a proper notice is filed.
38     (a)(b)  The notice shall be on a form provided by the
39department and shall state with specificity the following
40information, and such other information as the department may
41require:
42     1.  The statutory provision or common-law duty, including
43the specific language of the statute, if applicable, which the
44authorized insurer allegedly violated.
45     2.  The facts and circumstances giving rise to the
46violation and, if the violation includes failure to pay or
47tender moneys, the amount of such moneys.
48     3.  The name of any individual involved in the violation.
49     4.  Reference to specific policy language that is relevant
50to the violation, if any. If the person bringing the civil
51action is a third-party third party claimant, she or he shall
52not be required to reference the specific policy language if the
53authorized insurer has not provided a copy of the policy to the
54third-party third party claimant pursuant to written request.
55     5.  A statement that the notice is given in order to
56perfect the right to pursue the civil remedy authorized by this
57section or by the common law.
58     (b)(c)  Within 20 days after of receipt of the notice, the
59department may return any notice that does not provide the
60specific information required by this section, and the
61department shall indicate the specific deficiencies contained in
62the notice. A determination by the department to return a notice
63for lack of specificity shall be exempt from the requirements of
64chapter 120.
65     (c)(d)  No action shall lie if, within 60 days after filing
66notice, the damages are paid or the circumstances giving rise to
67the violation are corrected. If the alleged violation is based
68on this section or on the common-law claim of bad faith, the
69insurer's tender of either the amount demanded in the notice or
70the applicable policy limits constitutes correction of the
71circumstances giving rise to the violation. In third-party
72liability claims:
73     1.  If the claimant files the notice, the insured is
74entitled to a general release from the claimant upon the
75insurer's tender of the amount demanded in the notice or the
76applicable policy limits.
77     2.  If the insured files the notice and the claimant
78accepts the insurer's tender, the insured is entitled to a
79general release from the claimant.
80     (d)(e)  The authorized insurer that is the recipient of a
81notice filed pursuant to this section shall report to the
82department on the disposition of the alleged violation.
83     (e)(f)  The applicable statute of limitations for an action
84under this section or based on the common-law claim of bad faith
85shall be tolled for a period of 65 days by the mailing of the
86notice required by this subsection or the mailing of a
87subsequent notice required by this subsection.
88     (8)  Except as provided in subsection (3), the civil remedy
89specified in this section does not preempt any other remedy or
90cause of action provided for pursuant to any other statute or
91pursuant to the common law of this state. Any person may obtain
92a judgment under either the common-law remedy of bad faith or
93this statutory remedy, but shall not be entitled to a judgment
94under both remedies. This section shall not be construed to
95create a common-law cause of action. The damages recoverable
96pursuant to this section shall include those damages which are a
97reasonably foreseeable result of a specified violation of this
98section by the authorized insurer and may include an award or
99judgment in an amount that exceeds the policy limits.
100     Section 2.  This act shall take effect July 1, 2012.


CODING: Words stricken are deletions; words underlined are additions.
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