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

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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

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HB 427

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