Florida Legislature Once Again Considers Amendment To Civil Remedies Against Insurers Statute

A bill is pending before the Florida Senate that would amend Section 624.155, Florida Statutes, providing for civil remedies against insurers (“statutory bad faith”). While seemingly not as drastic as amendments proposed in the past, it does seek to subject common-law bad faith claims to its provisions, and requires that Civil Remedy Notices (“CRNs”) be filed with the Department of Financial Services as a prerequisite to initiating an action based on a theory of common-law bad faith. If the bad faith claim is premised on the insurer’s failure to pay or tender moneys, the notice must so state, and the insurer has 60 days from the filing of an acceptable notice within which to cure the violation by paying the moneys. If the claimant files the notice, the amendment provides that the insured is entitled to a release upon the insurer’s tender of the amount demanded in the notice or of policy limits. The amendment also authorizes an interpleader action on the part of a liability insurer in a multiple-claimant situation where the total value of the claims exceeds policy limits. The bill’s text in PDF format may be viewed here