Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 286
                        Barcode 100880
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: WD              .                    
       04/05/2006 12:31 PM         .                    
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11  The Committee on Banking and Insurance (Campbell) recommended
12  the following amendment to amendment (025144):
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14         Senate Amendment 
15         On page 6, line 16, through
16            page 9, line 24, delete those lines
17  
18  and insert:  
19         627.7074 Alternative procedure for resolution of
20  disputed sinkhole insurance claims.--
21         (1)  As used in this section, the term:
22         (a)  "Neutral evaluation" means the alternative dispute
23  resolution provided for in this section.
24         (b)  "Neutral evaluator" means a professional engineer
25  or a professional geologist who has completed a course of
26  study in alternative dispute resolution designed or approved
27  by the department for use in the neutral-evaluation process,
28  who is determined to be fair and impartial, and who is
29  attempting to resolve the dispute or claim under this section.
30         (c)  "Department" means the Department of Financial
31  Services.
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    11:00 AM   04/05/06                            s0286b-bi32-e0m

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 286 Barcode 100880 1 (2) The department shall certify and maintain a list 2 of persons who are neutral evaluators. 3 (3) Following the receipt of the report provided under 4 s. 627.7073 or the denial of a claim for a sinkhole loss, the 5 insurer shall notify the policyholder of his or her right to 6 participate in the neutral evaluation program under this 7 section. Neutral evaluation supersedes the alternative dispute 8 resolution process under s. 627.7015. The department shall 9 prepare a consumer information pamphlet for distribution by 10 the insurer to policyholders. The pamphlet must clearly 11 describe the neutral-evaluation process and include directions 12 and forms necessary for the policyholder to request a neutral 13 evaluation. 14 (4) Neutral evaluation is optional and nonbinding. 15 Either the policyholder or the insurer may decline to 16 participate. A request for neutral evaluation must be filed 17 with the department by the policyholder or the insurer on a 18 form approved by the department. The request for neutral 19 evaluation must state the reason for the request and must 20 include an explanation of the issues in dispute at the time of 21 the request. Filing a request for neutral evaluation tolls the 22 applicable time requirements for filing suit for a period of 23 60 days following the conclusion of the neutral-evaluation 24 process or the time prescribed in s. 95.11, whichever is 25 later. 26 (5) Neutral evaluation shall be conducted as an 27 informal process in which formal rules of evidence and 28 procedure need not be observed. A party to neutral evaluation 29 is not required to attend neutral evaluation if a 30 representative of the party attends and has the authority to 31 make a binding decision on behalf of the party. All parties 2 11:00 AM 04/05/06 s0286b-bi32-e0m
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 286 Barcode 100880 1 shall participate in the evaluation in good faith. 2 (6) The insurer shall pay the costs associated with 3 the neutral evaluation. 4 (7) Upon receipt of a request for neutral evaluation, 5 the department shall provide to the parties a list of 6 certified neutral evaluators. The parties shall mutually 7 select a neutral evaluator from the list. If the parties 8 cannot agree to a neutral evaluator within 10 business days, a 9 court of competent jurisdiction shall appoint a neutral 10 evaluator from the department list. 11 (8) Within 5 days after the referral, the neutral 12 evaluator shall notify the policyholder and the insurer of the 13 date, time, and place of the neutral evaluation conference. 14 The conference may be held by telephone, if feasible and 15 desirable. The neutral evaluation conference shall be held 16 within 45 days after receipt of the request by the department. 17 (9) The department shall adopt rules of procedure for 18 the neutral-evaluation process. 19 (10) For policyholders not represented by an attorney, 20 a consumer affairs specialist of the department or an employee 21 designated as the primary contact for consumers on issues 22 relating to sinkholes under s. 20.121 shall be available for 23 consultation to the extent that he or she may lawfully do so. 24 (11) Disclosures and information divulged in the 25 neutral-evaluation process are not admissible in any 26 subsequent action or proceeding relating to the claim or to 27 the cause of action giving rise to the claim, except as 28 provided in subsection (13). 29 (12) Any court proceeding related to the subject 30 matter of the neutral evaluation shall be stayed pending 31 completion of the neutral evaluation. 3 11:00 AM 04/05/06 s0286b-bi32-e0m
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 286 Barcode 100880 1 (13) For matters that are not resolved by the parties 2 at the conclusion of the neutral evaluation, the neutral 3 evaluator shall prepare a report stating that in his or her 4 opinion the sinkhole loss has been verified or eliminated and, 5 if verified, the need for and estimated costs of stabilizing 6 the land and any covered structures or buildings and other 7 appropriate remediation or structural repairs. The evaluator's 8 report shall be sent to all parties in attendance at the 9 neutral evaluation and to the department. 10 (14) The recommendation of the neutral evaluator is 11 not binding on any party, and the parties retain access to 12 courts. The neutral evaluator's written recommendation is 13 admissible in any subsequent action or proceeding relating to 14 the claim or to the cause of action giving rise to the claim. 15 (15) A party may seek judicial review of the 16 recommendation of the neutral evaluator to determine whether 17 the recommendation is reasonable. A recommendation is 18 reasonable unless it was procured by corruption, fraud, or 19 other undue means; there was evident partiality by the neutral 20 evaluator or misconduct prejudicing the rights of any party; 21 or the neutral evaluator exceeded the authority and power 22 granted by this subsection. If the court declares that the 23 recommendation is not reasonable, the neutral-evaluation 24 recommendation shall be vacated. 25 26 27 28 29 30 31 4 11:00 AM 04/05/06 s0286b-bi32-e0m