Florida Senate - 2021 COMMITTEE AMENDMENT Bill No. CS for CS for SB 54 Ì524236%Î524236 LEGISLATIVE ACTION Senate . House Comm: WD . 03/11/2021 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Rules (Brandes) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 1932 - 2023 4 and insert: 5 5. Other than for transportation network companies as 6 defined in s. 627.748, requests for examinations under oath and 7 an explanation of the consequences of an insured’s failure to 8 submit to an examination under oath; and 9 6. Any demands for settlement under subsection (6) or 10 settlement offers. 11 (j) When a loss involves multiple claimants and the 12 claimants are unwilling to settle cumulatively within the policy 13 limits and release the insured from further liability, in 14 addition to fulfilling the requirements of paragraphs (a)-(i), 15 attempt to minimize the risk of excess judgments against the 16 insured and settle as many claims as possible within the policy 17 limits in exchange for a release of the insured from further 18 liability. 19 (5) CONDITIONS PRECEDENT.—It is a condition precedent to 20 filing a third-party action for bad faith failure to settle 21 against an insurer that the claimant must: 22 (a) Serve a demand for settlement, as provided in 23 subsection (6), within the insurer’s limits of liability in 24 exchange for a release of further liability against the insured; 25 and 26 (b) Obtain a final judgment in excess of the policy limits 27 against the insured. 28 (6) DEMAND FOR SETTLEMENT.—A demand for settlement must do 29 all of the following: 30 (a) Identify the: 31 1. Date and location of loss; 32 2. Name, address, and date of birth of the claimant; 33 3. Name of each insured to whom the demand for settlement 34 is directed; and 35 4. Legal and factual basis of the claim. 36 (b) Provide a reasonably detailed description of the 37 claimant’s: 38 1. Known injuries caused or aggravated by the incident on 39 which the claim is based; 40 2. Medical treatment causally related to the incident on 41 which the claim is based; and 42 3. Type and amount of known damages incurred and, if any, 43 the damages the claimant reasonably anticipates incurring in the 44 future. 45 (c) State the amount of the demand for settlement. 46 (d) State whether the demand for settlement is conditioned 47 on the completion of an examination under oath, as authorized by 48 subsection (8). 49 (e) Provide a physical address, an e-mail address, and a 50 facsimile number for further communications, including, but not 51 limited to, responses to the demand for settlement. 52 (f) Release the insured from any further liability upon the 53 insurer’s acceptance of a demand for settlement which is not 54 withdrawn pursuant to paragraph (8)(e) or paragraph (8)(g) or 55 accepted pursuant to paragraph (8)(f). 56 (g) Be served upon the insurer by certified mail at the 57 address designated by the insurer with the Department of 58 Financial Services under s. 624.422(2). 59 (7) LIMITATIONS ON CONDITIONS OF ACCEPTANCE OF A DEMAND.—A 60 claimant may not place any conditions on acceptance of a demand 61 for settlement other than electing the right to examine the 62 insured under oath regarding any of the following: 63 (a) Whether the insured has the ability to satisfy a claim 64 for damages in excess of the insurer’s limits of liability. 65 (b) Whether any other person or entity may have actual or 66 potential direct or vicarious liability for the insured’s 67 negligence. 68 (c) Whether any other insurance exists that may cover some 69 or all of the damages sustained by the claimant. 70 (8) EXAMINATION UNDER OATH.—After serving a demand for 71 settlement, a claimant may examine the insured under oath, on 72 one occasion for a period of time not to exceed 2 hours, 73 regarding only the issues in subsection (7). 74 (a) The claimant may request that the insured bring to the 75 examination relevant documents in the insured’s possession, 76 custody, or control, including, but not limited to, credit 77 reports, insurance policies, bank statements, tax returns, 78 deeds, titles, and other proof of assets or liabilities. 79 (b) Except as provided in paragraph (7)(b), the claimant 80 may not examine the insured regarding liability. 81 (c) The claimant, the insurer, and the insured shall 82 cooperate in scheduling the examination under oath. The insurer 83 shall notify the insured of the date, time, and location of the 84 examination under oath. 85 (d) The examination under oath must occur within 30 days 86 after the insurer’s acceptance of the settlement demand. 87 (e) The claimant may withdraw the demand for settlement if 88 the insured refuses to submit to an examination under oath. 89 (f) If the insured refuses to submit to an examination 90 under oath, the insurer may accept the demand for settlement 91 without requiring a release of the insured. An insurer that 92 accepts the demand for settlement pursuant to this paragraph 93 does not have any further duty to defend the insured and may not 94 be held liable for damages to the insured if the claimant 95 thereafter obtains an excess judgment against the insured. 96 (g) Within 7 days after the examination under oath, the 97 claimant may withdraw the demand for settlement. 98 (h) Nothing in this section applies to transportation 99 network companies as defined in s. 627.748. 100 101 ================= T I T L E A M E N D M E N T ================ 102 And the title is amended as follows: 103 Between lines 149 and 150 104 insert: 105 providing applicability;