Insurer Civil Remedy Bill (HB 5) Filed For 2016 Florida Legislative Session Would Provide Bad Faith Immunity For 45-Day Settlement Window

Aug 4, 2015


Filed by State Representative Mike Hill yesterday, August 3, 2015, HB 5 Relating to Civil Remedies Against Insurers would revise Florida’s insurance laws relating to bad faith by providing a 45-day window in which insurers would be able to make payment offers and not be potentially liable for bad faith.  

The bill would require a written notice of loss as a condition precedent to action for third-party bad-faith failure to settle an insurance claim and provide that an insurer would not be liable for bad faith in settling the claim if certain conditions are met.  

Specifically, HB 5 would amend 624.155, F.S. with the following provision:

“As a condition precedent to a statutory or common-law action for third-party bad-faith failure to settle a liability insurance claim, the insured, claimant, or anyone on behalf of the insured or the claimant must provide the insurer with written notice of loss.  If the insurer complies with a request for a disclosure statement described in s. 627.4137 and, within 45 days after receipt of the written notice of loss, offers to pay the claimant the lesser of the amount that the claimant is willing to accept or the limits of liability coverage applicable to the claimant’s insurance claim in exchange for a full release of the insured from any liability arising from the incident and the notice of insurance claim, the insurer is not in violation of the duty to attempt in good faith to settle the claim and is not liable for bad-faith failure to settle under this section or the common law.”

Effective July 1, 2016 if enacted, HB 5 would also re-enact 766.1185(3), F.S. relating to bad faith actions to incorporate this amendment.

To access complete bill information on HB 5, click here.


Should you have any questions or comments, please contact Colodny Fass.



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