Second District Court of Appeal Upholds Constitutionality of 2010 Insurance Sinkhole Claims Neutral Evaluation Law
Jul 13, 2012
The News Service of Florida reported for the second time in less than two weeks that, on July 11, 2012, the Second District Court of Appeal upheld the constitutionality of a 2010 law aimed at spurring neutral evaluations of insurance sinkhole claims. The court sided with Sunshine State Insurance Company, overturning a Hillsborough County circuit judge’s ruling that the law was unconstitutional.
The three-judge appellate panel cited a June 29 ruling in which it ruled in favor of State Farm Florida Insurance Company in a similar case from Pasco County. Lawmakers approved the law amid insurer complaints about growing financial losses because of sinkhole claims–articularly in areas north of Tampa. The law set up a process that required neutral evaluations of sinkhole claims if requested by policyholders or insurers.
Policyholders challenged the constitutionality of the law, at least in part, because of questions about whether it usurped the authority of courts to decide disputed coverage issues, according to the State Farm case. The appeals court, however, found that the law “does not encroach on the circuit court’s judicial authority.”
To view the July 11 Second District Court Opinion, click here.
To view a summary of the June 29 ruling, click here.
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