Florida Senate - 2015 SB 1088 By Senator Brandes 22-00742-15 20151088__ 1 A bill to be entitled 2 An act relating to civil remedies against insurers; 3 amending s. 624.155, F.S.; requiring an insured, a 4 claimant, or a person acting on behalf of an insured’s 5 or a claimant’s behalf, to provide an insurer with 6 written notice of loss as a condition precedent to 7 bringing a statutory or common law action for a third 8 party bad faith action for failure to settle an 9 insurance claim; providing that an insurer is not 10 liable for such claim if certain conditions are met; 11 reenacting s. 766.1185(3), F.S., relating to bad faith 12 actions, to incorporate the amendment made to s. 13 624.155, F.S., in a reference thereto; providing an 14 effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Paragraph (a) of subsection (3) of section 19 624.155, Florida Statutes, is amended, and subsection (10) is 20 added to that section, to read: 21 624.155 Civil remedy.— 22 (3)(a) Except as provided in subsection (10), as a 23 condition precedent to bringing an action under this section, 24 the department and the authorized insurer must have been given 25 60 days’ written notice of the violation. If the department 26 returns a notice for lack of specificity, the 60-day time period 27 doesshallnot begin until a proper notice is filed. 28 (10) As a condition precedent to bringing a third-party 29 statutory or common-law bad faith action for failure to settle a 30 liability insurance claim, the insured, the claimant, or any 31 person on behalf of the insured or the claimant must have 32 provided the insurer with a written notice of loss. An insurer 33 does not violate the duty to attempt in good faith to settle the 34 claim and is not liable for a bad faith failure to settle under 35 this section or common law if the insurer: 36 (a) Complies with a request for a disclosure statement as 37 described in s. 627.4137. 38 (b) Offers, within 45 days after receipt of the written 39 notice of loss, to pay the claimant the lesser of the amount 40 that the claimant is willing to accept or the limits of 41 liability coverage applicable to the claimant’s insurance claim 42 in exchange for a full release of the insured from any liability 43 arising from the incident reported in the written notice of 44 loss. 45 Section 2. For the purpose of incorporating the amendment 46 made by this act to section 624.155, Florida Statutes, in a 47 reference thereto, subsection (3) of section 766.1185, Florida 48 Statutes, is reenacted to read: 49 766.1185 Bad faith actions.—In all actions for bad faith 50 against a medical malpractice insurer relating to professional 51 liability insurance coverage for medical negligence, and in 52 determining whether the insurer could and should have settled 53 the claim within the policy limits had it acted fairly and 54 honestly towards its insured with due regard for her or his 55 interest, whether under statute or common law: 56 (3) The provisions of s. 624.155 shall be applicable in all 57 cases brought pursuant to that section unless specifically 58 controlled by this section. 59 Section 3. This act shall take effect July 1, 2015.