Bill Text: FL S0924 | 2020 | Regular Session | Introduced
Bill Title: Civil Actions Against Insurers
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2020-03-14 - Died in Banking and Insurance [S0924 Detail]
Download: Florida-2020-S0924-Introduced.html
Florida Senate - 2020 SB 924 By Senator Brandes 24-00450C-20 2020924__ 1 A bill to be entitled 2 An act relating to civil actions against insurers; 3 amending s. 624.155, F.S.; providing that, in third 4 party bad faith actions against insurers, insureds and 5 claimants have the burden to prove that an insurer 6 acted in reckless disregard for insured rights which 7 resulted in damage to the insured or the claimant; 8 providing that insured or claimant actions or 9 inactions are relevant in bad faith actions; 10 specifying an affirmative defense; specifying an 11 insurer’s duties to insureds; providing that an 12 insurer is not liable if certain conditions are met; 13 providing that an insurer is not liable beyond 14 available policy limits as to certain competing third 15 party claims if it files an interpleader action within 16 a certain timeframe; providing construction; providing 17 an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Subsection (1) of section 624.155, Florida 22 Statutes, is amended, and subsections (10) and (11) are added to 23 that section, to read: 24 624.155 Civil remedy.— 25 (1) Any person may bring a civil action against an insurer 26 when such person is damaged: 27 (a) By a violation of any of the following provisions by 28 the insurer: 29 1. Section 626.9541(1)(i), (o), or (x); 30 2. Section 626.9551; 31 3. Section 626.9705; 32 4. Section 626.9706; 33 5. Section 626.9707; or 34 6. Section 627.7283. 35 (b) By the commission of any of the following acts by the 36 insurer: 37 1. Not attempting in good faith to settle claims when, 38 under all the circumstances, it could and should have done so, 39 had it acted fairly and honestly toward its insured and with due 40 regard for her or his interests; 41 2. Making claims payments to insureds or beneficiaries not 42 accompanied by a statement setting forth the coverage under 43 which payments are being made; or 44 3. Except as to liability coverages, failing to promptly 45 settle claims, when the obligation to settle a claim has become 46 reasonably clear, under one portion of the insurance policy 47 coverage in order to influence settlements under other portions 48 of the insurance policy coverage. 49 50 Notwithstanding paragraphs (a) and (b)the provisions of the51above to the contrary, a person pursuing a remedy under this 52 section need not prove that such act was committed or performed 53 with such frequency as to indicate a general business practice. 54 (10) Notwithstanding subsections (1)-(9), in an action for 55 third-party bad faith under this chapter or at common law: 56 (a) An insured or a claimant has the burden to prove that 57 the insurer acted in bad faith. An insured or a claimant must 58 prove that the insurer acted in reckless disregard for the 59 rights of any insured and that the reckless disregard caused 60 damage to the insured or claimant. 61 (b) The actions or inactions of the insured or claimant are 62 relevant in an action for bad faith. It is an affirmative 63 defense to a claim for bad faith that the insured’s or 64 claimant’s own conduct, in whole or in part, caused an excess 65 judgment. 66 (c) An insurer must advise an insured of settlement 67 opportunities, advise an insured as to the probable outcome of 68 the litigation, warn an insured of the possibility of an excess 69 judgment, advise an insured of steps to avoid an excess 70 judgment, and defend an insured against a legal action when the 71 complaint alleges facts that fairly and potentially bring the 72 suit within policy coverage. An insurer is not liable if the 73 insurer fulfills such obligations and the trier of fact finds 74 that, within 45 days after receipt of the written notice of 75 loss, the insurer stood ready and willing to settle for policy 76 limits. 77 (11) If two or more third-party claimants in a liability 78 claim make competing claims arising out of a single occurrence 79 which in total exceed the available policy limits of one or more 80 of the insured parties who may be liable to the third-party 81 claimants, an insurer is not liable beyond the available policy 82 limits for failure to pay all or any portion of the available 83 policy limits to one or more of the third-party claimants if, 84 within 90 days after receiving notice of the competing claims in 85 excess of the available policy limits, the insurer files an 86 interpleader action under the Florida Rules of Civil Procedure. 87 The competing third-party claimants are entitled to a prorated 88 share of the policy limits as determined by the trier of fact. 89 An insurer’s interpleader action does not alter or amend the 90 insurer’s obligation to defend its insured. 91 Section 2. This act shall take effect July 1, 2020.