Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1488
                        Barcode 445952
                            CHAMBER ACTION
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       05/05/2005 08:17 PM         .                    
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11  Senator Garcia moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 56, line 19, through
15            page 57, line 8, delete those lines
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17  and insert:  
18         Section 14.  Effective July 1, 2005, subsections (1)
19  and (7) of section 627.7015, Florida Statutes, are amended,
20  and subsection (2) of that section is reenacted, to read:
21         627.7015  Alternative procedure for resolution of
22  disputed property insurance claims.--
23         (1)  PURPOSE AND SCOPE.--This section sets forth a
24  nonadversarial alternative dispute resolution procedure for a
25  mediated claim resolution conference prompted by the need for
26  effective, fair, and timely handling of property insurance
27  claims. There is a particular need for an informal,
28  nonthreatening forum for helping parties who elect this
29  procedure to resolve their claims disputes because most
30  homeowner's and commercial residential insurance policies
31  obligate insureds to participate in a potentially expensive
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    8:14 AM   05/02/05                             s1488c2c-40-z6c

Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 445952 1 and time-consuming adversarial appraisal process prior to 2 litigation. The procedure set forth in this section is 3 designed to bring the parties together for a mediated claims 4 settlement conference without any of the trappings or 5 drawbacks of an adversarial process. Before resorting to these 6 procedures, insureds and insurers are encouraged to resolve 7 claims as quickly and fairly as possible. This section is 8 available with respect to claims under personal lines and 9 commercial residential policies for all claimants and insurers 10 prior to commencing the appraisal process, or commencing 11 litigation. If requested by the insured, participation by 12 legal counsel shall be permitted. Mediation under this section 13 is also available to litigants referred to the department by a 14 county court or circuit court. This section does not apply to 15 commercial coverages, to private passenger motor vehicle 16 insurance coverages, or to disputes relating to liability 17 coverages in policies of property insurance. 18 (2) At the time a first-party claim within the scope 19 of this section is filed, the insurer shall notify all 20 first-party claimants of their right to participate in the 21 mediation program under this section. The department shall 22 prepare a consumer information pamphlet for distribution to 23 persons participating in mediation under this section. 24 (7) If the insurer fails to comply with subsection (2) 25 by failing to notify a first-party claimant of its right to 26 participate in the mediation program under this section or if 27 the insurer requests the mediation, and the mediation results 28 are rejected by either party, the insured shall not be 29 required to submit to or participate in any contractual loss 30 appraisal process of the property loss damage as a 31 precondition to legal action for breach of contract against 2 8:14 AM 05/02/05 s1488c2c-40-z6c
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 445952 1 the insurer for its failure to pay the policyholder's claims 2 covered by the policy. 3 4 5 ================ T I T L E A M E N D M E N T =============== 6 And the title is amended as follows: 7 On page 4, lines 2-6, delete those lines 8 9 and insert: 10 property; amending s. 627.7015, F.S.; revising 11 purpose and scope provisions relating to an 12 alternative procedure for resolution of 13 disputed property insurance claims; providing 14 that failure of an insurer to notify a claimant 15 of the availability of mediation excuses an 16 insured from being required to submit to 17 certain loss appraisal processes; amending s. 18 627.702, F.S.; 19 20 21 22 23 24 25 26 27 28 29 30 31 3 8:14 AM 05/02/05 s1488c2c-40-z6c