Florida Senate - 2026                                     SB 108
       
       
        
       By Senator Polsky
       
       
       
       
       
       30-00313-26                                            2026108__
    1                        A bill to be entitled                      
    2         An act relating to the resolution of disputed property
    3         insurance claims; amending s. 627.7015, F.S.;
    4         requiring, rather than authorizing, parties in a
    5         property insurance claim dispute to participate in
    6         mediation; providing that mediation is a condition
    7         precedent to commencing litigation; deleting
    8         provisions relating to the eligibility of claims for
    9         mediation; providing that the parties may mutually
   10         agree to conduct the mediation by teleconference or
   11         other electronic means; requiring all insureds, or
   12         their representatives, to attend the mediation;
   13         revising and specifying duties relating to the parties
   14         bearing certain costs of mediation; requiring, rather
   15         than authorizing, the Department of Financial Services
   16         to adopt certain rules; authorizing the department to
   17         adopt certain emergency rules; requiring the
   18         policyholder to provide the insurer with any
   19         information and certain documents within a specified
   20         timeframe after mediation is invoked; revising
   21         conditions under which a policyholder has a certain
   22         timeframe to rescind a settlement; revising the
   23         definition of the term “claim”; providing and revising
   24         construction; amending s. 627.7074, F.S.; conforming a
   25         provision to changes made by the act; providing an
   26         appropriation; providing effective dates.
   27          
   28  Be It Enacted by the Legislature of the State of Florida:
   29  
   30         Section 1. Section 627.7015, Florida Statutes, is amended
   31  to read:
   32         627.7015 Mandatory mediation Alternative procedure for
   33  resolution of disputed property insurance claims.—
   34         (1) This section sets forth a nonadversarial alternative
   35  dispute resolution procedure for a mediated claim resolution
   36  conference prompted by the need for effective, fair, and timely
   37  handling of property insurance claims. There is a particular
   38  need for an informal, nonthreatening forum for helping parties
   39  who elect this procedure to resolve their claims disputes
   40  because most homeowner and commercial residential insurance
   41  policies obligate policyholders to participate in a potentially
   42  expensive and time-consuming adversarial appraisal process
   43  before litigation. The procedure set forth in this section is
   44  designed to bring the parties together for a mediated claims
   45  settlement conference without any of the trappings or drawbacks
   46  of an adversarial process. Before participating in resorting to
   47  these procedures, policyholders and insurers are encouraged to
   48  resolve claims as quickly and fairly as possible. This section
   49  applies is available with respect to claims under personal lines
   50  and commercial residential policies before commencing the
   51  appraisal process and is a condition precedent to, or before
   52  commencing litigation. Mediation may be requested only by the
   53  policyholder, as a first-party claimant, a third-party, as an
   54  assignee of the policy benefits, or the insurer. However, An
   55  insurer is not required to participate in any mediation
   56  requested by a third-party assignee of the policy benefits. If
   57  requested by the policyholder, Participation by legal counsel is
   58  permitted. Mediation under this section is also required of
   59  available to litigants referred to the department by a county
   60  court or circuit court. This section does not apply to
   61  commercial coverages, to private passenger motor vehicle
   62  insurance coverages, or to disputes relating to liability
   63  coverages in policies of property insurance.
   64         (2) At the time of issuance and renewal of a policy or at
   65  the time a first-party claim within the scope of this section is
   66  filed by the policyholder, the insurer shall notify the
   67  policyholder of its right to participate in the mandatory
   68  mediation program under this section. A claim becomes eligible
   69  for mediation after the insurer complies with s. 627.70131(7) or
   70  elects to reinspect pursuant to s. 627.70152(4)(a)3. If the
   71  insurer has not complied with s. 627.70131(7) or elected to
   72  reinspect pursuant to s. 627.70152(4)(a)3. within 90 days after
   73  notice of the loss, the insurer may not require mediation under
   74  this section. This subsection does not impair the right of an
   75  insurance company to request mediation after a determination of
   76  coverage pursuant to this section or require appraisal or
   77  another method of alternative dispute resolution pursuant to s.
   78  627.70152(4)(b). The department shall prepare a consumer
   79  information pamphlet for distribution to persons participating
   80  in mediation.
   81         (3) If the parties mutually agree, mediation may be
   82  conducted by teleconference or other electronic means in lieu of
   83  appearing in person. All named insureds, or their
   84  representatives, must attend the mediation, regardless of how it
   85  is conducted. The costs of mediation must be reasonable, and the
   86  insurer must bear all of the cost of conducting mediation
   87  conferences, except as otherwise provided in this section. If a
   88  named insured or his or her representative policyholder fails to
   89  appear at the conference, thus preventing the mediation from
   90  proceeding, the conference must be rescheduled upon the
   91  policyholder’s payment of the costs of a rescheduled conference.
   92  If the insurer fails to appear at the conference, the insurer
   93  must pay the policyholder’s actual cash expenses incurred in
   94  attending the conference if the insurer’s failure to attend was
   95  not due to a good cause acceptable to the department. An insurer
   96  is will be deemed to have failed to appear if the insurer’s
   97  representative lacks authority to settle the full value of the
   98  claim. The insurer shall incur an additional fee for a
   99  rescheduled conference necessitated by the insurer’s failure to
  100  appear at a scheduled conference. The fees assessed by the
  101  department must include a charge necessary to defray the
  102  expenses of the department related to its duties under this
  103  section and must be deposited in the Insurance Regulatory Trust
  104  Fund. The department may suspend the insurer’s authority to
  105  appoint licensees if the insurer does not timely pay the
  106  required fees. If a party elects to request an expert or a
  107  representative to attend the mediation, that party must bear any
  108  costs for the attendance of the expert or representative.
  109         (4) The department shall adopt by rule a property insurance
  110  mediation program to be administered by the department or its
  111  designee. The department shall may also adopt special rules that
  112  which are applicable in cases of an emergency within this the
  113  state, including emergency rules as necessary to establish
  114  physical addresses for the mediation program in areas affected
  115  by natural disasters. The rules shall be modeled after practices
  116  and procedures set forth in mediation rules of procedure adopted
  117  by the Supreme Court. The rules shall provide for all of the
  118  following:
  119         (a) Reasonable requirements requirement for processing and
  120  scheduling of requests for mediation.
  121         (b) Qualifications for persons who apply to be mediators,
  122  grounds for denial of applications application, revocation of
  123  the department’s approval of mediators, and grounds for
  124  suspension, revocation of approval, and other penalties for
  125  mediators, as provided in s. 627.745 and the Florida Rules for
  126  Certified and Court-Appointed Mediators.
  127         (c) Provisions governing who may attend mediation
  128  conferences.
  129         (d) Selection of mediators.
  130         (e) Criteria for the conduct of mediation conferences.
  131         (f) Right to legal counsel.
  132         (5)(a) All statements made and documents produced at a
  133  mediation conference shall be deemed to be settlement
  134  negotiations in anticipation of litigation within the scope of
  135  s. 90.408. All parties to the mediation must negotiate in good
  136  faith and must have the authority to immediately settle the
  137  claim. Mediators are deemed to be agents of the department and
  138  shall have the immunity from suit provided in s. 44.107.
  139         (b)Within 10 days after mediation is invoked, the
  140  policyholder must provide to the insurer any information and
  141  supporting documents that serve as the basis for the claim.
  142         (6)(a) Mediation is nonbinding; however, if a written
  143  settlement is reached and the policyholder is not represented by
  144  an attorney or a public adjuster, the policyholder has 3
  145  business days within which the policyholder may rescind the
  146  settlement unless the policyholder has cashed or deposited any
  147  check or draft disbursed to the policyholder for the disputed
  148  matters as a result of the conference. If a settlement agreement
  149  is reached and is not rescinded, it is binding and acts as a
  150  release of all specific claims that were presented in that
  151  mediation conference.
  152         (b) At the conclusion of the mediation, the mediator shall
  153  provide a written report of the results of mediation, including
  154  any settlement amount, to the insurer, the policyholder, and the
  155  policyholder’s representative if the policyholder is represented
  156  at the mediation.
  157         (7) If the insurer fails to comply with subsection (2) by
  158  failing to notify a policyholder of its right to participate in
  159  the mandatory mediation program under this section or if the
  160  insurer requests the mediation, and the mediation results are
  161  rejected by either party, the policyholder is not required to
  162  submit to or participate in any contractual loss appraisal
  163  process of the property loss damage as a precondition to legal
  164  action for breach of contract against the insurer for its
  165  failure to pay the policyholder’s claims covered by the policy.
  166         (8) The department may designate an entity or person to
  167  serve as administrator to carry out any of the provisions of
  168  this section and may take this action by means of a written
  169  contract or agreement.
  170         (9) For purposes of this section, the term “claim” refers
  171  to any dispute between an insurer and a policyholder relating to
  172  a material issue of fact other than a dispute:
  173         (a) With respect to which the insurer has a reasonable
  174  basis to suspect fraud;
  175         (b) When the insurer has determined, based on agreed-upon
  176  facts as to the cause of loss, there is no coverage under the
  177  policy;
  178         (c) With respect to which the insurer has a reasonable
  179  basis to believe that the policyholder has intentionally made a
  180  material misrepresentation of fact which is relevant to the
  181  claim, and the entire request for payment of a loss has been
  182  denied on the basis of the material misrepresentation;
  183         (d) With respect to which the amount in controversy is less
  184  than $500, unless the parties agree to mediate a dispute
  185  involving a lesser amount; or
  186         (e) With respect to a loss that does not comply with s.
  187  627.70132.
  188         (10)Participation in mediation under this section before
  189  the policyholder’s filing of a notice under s. 627.70152 does
  190  not prohibit or waive an insurer’s right to invoke and
  191  participate in mediation under this section in response to the
  192  notice.
  193         Section 2. Subsection (3) of section 627.7074, Florida
  194  Statutes, is amended to read:
  195         627.7074 Alternative procedure for resolution of disputed
  196  sinkhole insurance claims.—
  197         (3) If there is coverage available under the policy and the
  198  claim was submitted within the timeframe provided in s.
  199  627.706(5), following the receipt of the report provided under
  200  s. 627.7073 or the denial of a claim for a sinkhole loss, the
  201  insurer shall notify the policyholder of his or her right to
  202  participate in the neutral evaluation program under this
  203  section. Neutral evaluation supersedes the mediation alternative
  204  dispute resolution process under s. 627.7015 but does not
  205  invalidate the appraisal clause of the insurance policy. The
  206  insurer shall provide to the policyholder the consumer
  207  information pamphlet prepared by the department pursuant to
  208  subsection (1) electronically or by United States mail.
  209         Section 3. Effective July 1, 2026, for the 2026-2027 fiscal
  210  year, the sum of $1 million in recurring funds is appropriated
  211  from the Insurance Regulatory Trust Fund to the Department of
  212  Financial Services for the purpose of administering the
  213  amendment made by this act to s. 627.7015, Florida Statutes.
  214         Section 4. Except as otherwise expressly provided in this
  215  act and except for this section, which shall take effect July 1,
  216  2026, this act shall take effect January 1, 2027.