Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for CS for SB 1980
Barcode 042402
CHAMBER ACTION
Senate House
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05/04/2006 06:01 PM .
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11 Senator Campbell moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 103, line 22, through
15 page 107, line 12, delete those lines
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17 and insert:
18 627.7074 Alternative procedure for resolution of
19 disputed sinkhole insurance claims.--
20 (1) As used in this section:
21 (a) "Neutral evaluation" means the alternative dispute
22 resolution provided for in this section.
23 (b) "Neutral evaluator" means a professional engineer
24 or a professional geologist who has completed a course of
25 study in alternative dispute resolution designed or approved
26 by the department for use in the neutral evaluation process,
27 who is determined to be fair and impartial, and who is
28 attempting to resolve the dispute or claim under this section.
29 (c) "Department" means the Department of Financial
30 Services.
31 (2)(a) The department shall certify and maintain a
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for CS for SB 1980
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1 list of persons who are neutral evaluators.
2 (b) The department shall prepare a consumer
3 information pamphlet for distribution by the insurer to
4 policyholders. The pamphlet must clearly describe the neutral
5 evaluation process and include directions and forms necessary
6 for the policyholder to request a neutral evaluation.
7 (3) Following the receipt of the report provided under
8 s. 627.7073 or the denial of a claim for a sinkhole loss, the
9 insurer shall notify the policyholder of his or her right to
10 participate in the neutral evaluation program under this
11 section. Neutral evaluation, if requested by either the
12 policyholder or insurer, supersedes the alternative dispute
13 resolution process under s. 627.7015. The insurer shall
14 provide the policyholder with the consumer information
15 pamphlet prepared by the department pursuant to paragraph
16 (2)(b).
17 (4) Neutral evaluation is nonbinding but mandatory if
18 requested by either party. The policyholder or the insurer may
19 request to participate. A request for neutral evaluation must
20 be filed with the department by the policyholder or the
21 insurer on a form approved by the department. The request for
22 neutral evaluation must state the reason for the request and
23 must include an explanation of the issues in dispute at the
24 time of the request. Filing a request for neutral evaluation
25 tolls the applicable time requirements for filing suit for 60
26 days following the conclusion of the neutral evaluation
27 process or the time prescribed in s. 95.11, whichever is
28 later.
29 (5) Neutral evaluation must be conducted as an
30 informal process in which formal rules of evidence and
31 procedure need not be observed. A party to neutral evaluation
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for CS for SB 1980
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1 is not required to attend neutral evaluation if a
2 representative of the party attends and has the authority to
3 make a binding decision on behalf of the party. All parties
4 must participate in the evaluation in good faith.
5 (6) The insurer shall pay the costs associated with
6 the neutral evaluation. However, if the policyholder seeks
7 judicial review of the recommendation of the neutral evaluator
8 and does not prevail, the policyholder shall pay the costs
9 associated with the neutral evaluation.
10 (7) Upon receipt of a request for neutral evaluation,
11 the department shall provide the parties a list of certified
12 neutral evaluators. The parties shall mutually select a
13 neutral evaluator from the list and promptly inform the
14 department. If the parties cannot agree to a neutral evaluator
15 within 10 business days, the department shall appoint a
16 neutral evaluator from the department's list. Upon selection
17 or appointment, the department shall promptly refer the
18 request to the neutral evaluator. Within 5 days after the
19 referral, the neutral evaluator shall notify the policyholder
20 and the insurer of the date, time, and place of the neutral
21 evaluation conference. The conference may be held by
22 telephone, if feasible and desirable. The neutral evaluation
23 conference shall be held within 45 days after receipt of the
24 request by the department.
25 (8) The department shall adopt rules of procedure for
26 the neutral evaluation process.
27 (9) For policyholders who are not represented by an
28 attorney, a consumer affairs specialist of the department or
29 an employee designated as the primary contact for consumers on
30 issues relating to sinkholes under s. 20.121 must be available
31 for consultation to the extent that he or she may lawfully do
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for CS for SB 1980
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1 so.
2 (10) Evidence of an offer to settle a claim during the
3 neutral evaluation process, as well as any relevant conduct or
4 statements made in negotiations concerning the offer to settle
5 a claim, is inadmissible to prove liability or absence of
6 liability for the claim or its value.
7 (11) Disclosures and information divulged in the
8 neutral evaluation process which are not subject to subsection
9 (10) are admissible in any subsequent action or proceeding
10 relating to the claim or to the cause of action giving rise to
11 the claim.
12 (12) Any pending court proceeding related to the
13 subject matter of the neutral evaluation must be stayed
14 pending completion of the neutral evaluation.
15 (13) For matters that are not resolved by the parties
16 at the conclusion of the neutral evaluation, the neutral
17 evaluator shall prepare a report stating that in his or her
18 opinion the sinkhole loss has been verified or eliminated and,
19 if verified, the need for and estimated costs of stabilizing
20 the land and any covered structures or buildings and other
21 appropriate remediation or structural repairs. The evaluator's
22 report must be sent to all parties in attendance at the
23 neutral evaluation and to the department.
24 (14) The recommendation of the neutral evaluator is
25 not binding on any party and the parties retain access to
26 courts. The neutral evaluator's written recommendation is
27 admissible in any subsequent action or proceeding relating to
28 the claim or to the cause of action giving rise to the claim.
29 (15)(a) A party may seek judicial review of the
30 recommendation of the neutral evaluator to determine whether
31 the recommendation is reasonable. The recommendation is
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1 presumed to be reasonable and the party seeking judicial
2 review has the burden to prove to the trier of fact by a
3 preponderance of the evidence that the recommendation is not
4 reasonable.
5 (b) A recommendation is presumed not reasonable if it
6 was procured by corruption, fraud, or other undue means, there
7 was evident partiality by the neutral evaluator or misconduct
8 prejudicing the rights of any party, it is not supported by
9 competent and substantial evidence, is contrary to the law, or
10 the neutral evaluator exceeded the authority and power granted
11 by this subsection.
12 (c) If the trier of fact determines that the
13 recommendation is not reasonable, the neutral evaluation
14 recommendation must be vacated, and the trier of fact shall
15 enter a verdict based on the evidence presented.
16 (16) On or before October 1, 2008, the department
17 shall provide a report to the Governor, the President of the
18 Senate, and the Speaker of the House of Representatives
19 setting forth information regarding claims processed using the
20 alternative procedure set forth in this section, including,
21 but not limited to, the number of claims processed and, in
22 both summary and detail form for each claim processed, the
23 amount of the claim in dispute, the time required to process
24 the claim under the alternative procedure, the outcome using
25 the alternative procedure, the cost of using the alternative
26 procedure, and the ultimate outcome of judicial review where
27 applicable.
28 (17) This section expires on October 1, 2009.
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for CS for SB 1980
Barcode 042402
1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 On page 7, line 31, through
4 page 8, line 5, delete those lines
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6 and insert:
7 costs; providing for judicial review; providing
8 that the recommendation of the neutral
9 evaluator is presumed to be reasonable;
10 providing exceptions; requiring the Department
11 of Financial Services to submit a report to the
12 Governor and the Legislature by a specified
13 date; providing for future repeal of the
14 alternative procedures by a specified date;
15 amending s.
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