Property Insurance Reform – S.B. 2-A (Special Session)


Arbitration A property insurance policy may not require that a


A property insurance policy may not require that a policyholder participate in mandatory binding arbitration unless all of the following apply: (1) the mandatory binding arbitration requirements are contained in a separate endorsement attached to the property insurance policy; (2) the premium that a policyholder is charged for the policy includes an actuarially sound credit or premium discount for the mandatory binding arbitration endorsement; (3) the policyholder signs a form electing to accept mandatory binding arbitration. The form must notify the policyholder of the rights given up in exchange for the credit or premium discount, including, but not limited to, the right to a trial by jury; (4) the endorsement establishes that an insurer will comply with the mediation provisions set forth in s. 627.7015 before the initiation of arbitration; and (5) the insurer also offers the policyholder a policy that does not require that the policyholder participate in mandatory binding arbitration.


Assignment of Benefits

Prohibits the assignment, in whole or in part, of any post-loss insurance benefit under any residential property insurance policy or under any commercial property insurance policy issued on or after January 1, 2023.


Attorney Fees in Property Insurance Cases

Provides that the one-way attorney fee provisions are not applicable in a suit arising under a residential or commercial property insurance policy.  Reinstates application of the civil offer of judgment statute to civil actions arising under a residential or commercial property insurance policy and allows joint offers of settlement in property insurance litigation contingent on acceptance of all joint offerees.  Removes provisions regarding attorney fees relating to the alternative procedure for resolution of disputed sinkhole insurance claims.


Bad Faith Failure to Settle Actions against Property Insurers

Provides that bad faith litigation for failure to settle a property insurance claim may not be filed until after the insured has established through adverse adjudication by a court that the insurer breached the insurance contract and a final judgment or decree has been rendered against the insurer.


Claim Filing Deadline

Reduces the deadline for policyholders to report a claim under the policy from 2 years to 1 year for a new or reopened claim, and from 3 years to 18 months for a supplemental claim.

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