Senate Bill sb1782

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    Florida Senate - 2007                                  SB 1782

    By Senator Baker





    20-1353-07

  1                      A bill to be entitled

  2         An act relating to alternative procedures for

  3         resolving disputed insurance claims; amending

  4         s. 627.7015, F.S.; providing a nonadversarial

  5         alternative dispute-resolution procedure for

  6         handling marine insurance claims; requiring the

  7         Department of Financial Services to adopt by

  8         rule a marine insurance mediation program to be

  9         administered by the department or its designee;

10         requiring that mediators in the case of marine

11         insurance policies be certified by The Florida

12         Bar in admiralty and maritime law; providing an

13         effective date.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Subsections (1) and (4) of section

18  627.7015, Florida Statutes, are amended to read:

19         627.7015  Alternative procedure for resolution of

20  disputed property insurance claims.--

21         (1)  PURPOSE AND SCOPE.--This section sets forth a

22  nonadversarial alternative dispute resolution procedure for a

23  mediated claim resolution conference prompted by the need for

24  effective, fair, and timely handling of property and marine

25  insurance claims. There is a particular need for an informal,

26  nonthreatening forum for helping parties who elect this

27  procedure to resolve their claims disputes because most

28  homeowner's, marine insurance, and commercial residential

29  insurance policies obligate insureds to participate in a

30  potentially expensive and time-consuming adversarial appraisal

31  process prior to litigation. The procedure set forth in this

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    Florida Senate - 2007                                  SB 1782
    20-1353-07




 1  section is designed to bring the parties together for a

 2  mediated claims settlement conference without any of the

 3  trappings or drawbacks of an adversarial process. Before

 4  resorting to these procedures, insureds and insurers are

 5  encouraged to resolve claims as quickly and fairly as

 6  possible. This section is available with respect to claims

 7  under personal lines and commercial residential and marine

 8  policies for all claimants and insurers prior to commencing

 9  the appraisal process, or commencing litigation. If requested

10  by the insured, participation by legal counsel shall be

11  permitted. Mediation under this section is also available to

12  litigants referred to the department by a county court or

13  circuit court. This section does not apply to commercial

14  coverages, to private passenger motor vehicle insurance

15  coverages, or to disputes relating to liability coverages in

16  policies of property insurance.

17         (4)  The department shall adopt by rule a property and

18  marine insurance mediation program to be administered by the

19  department or its designee. The department may also adopt

20  special rules which are applicable in cases of an emergency

21  within the state. The rules shall be modeled after practices

22  and procedures set forth in mediation rules of procedure

23  adopted by the Supreme Court. The rules shall provide for:

24         (a)  Reasonable requirement for processing and

25  scheduling of requests for mediation.

26         (b)  Qualifications of mediators as provided in s.

27  627.745 and in the Florida Rules of Certified and Court

28  Appointed Mediators, and for such other individuals as are

29  qualified by education, training, or experience as the

30  department determines to be appropriate, except that in the

31  case of marine insurance policies, mediators shall be civil

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    Florida Senate - 2007                                  SB 1782
    20-1353-07




 1  circuit mediators who are also certified by The Florida Bar in

 2  admiralty and maritime law.

 3         (c)  Provisions governing who may attend mediation

 4  conferences.

 5         (d)  Selection of mediators.

 6         (e)  Criteria for the conduct of mediation conferences.

 7         (f)  Right to legal counsel.

 8         Section 2.  This act shall take effect upon becoming a

 9  law.

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12                          SENATE SUMMARY

13    Provides a nonadversarial alternative dispute-resolution
      procedure for a mediated claim resolution conference for
14    fair and timely handling of marine insurance claims.
      Requires the Department of Financial Services to adopt by
15    rule a marine insurance mediation program to be
      administered by the department or its designee. Provides
16    that mediators in the case of marine insurance policies
      be certified by The Florida Bar in admiralty and maritime
17    law.

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