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| 3 | 3 | | HB 459 2025 |
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| 9 | 9 | | Page 1 of 9 |
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| 10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 14 | 14 | | A bill to be entitled 1 |
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| 15 | 15 | | An act relating to the resolution of disputed property 2 |
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| 16 | 16 | | insurance claims; amending s. 627.7015, F.S.; 3 |
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| 17 | 17 | | requiring, rather than authorizing, parties in a 4 |
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| 18 | 18 | | property insurance claim dispute to participate in 5 |
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| 19 | 19 | | mediation; providing that mediation is a condition 6 |
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| 20 | 20 | | precedent to commencing litigation; deleting 7 |
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| 21 | 21 | | provisions relating to the eligibility of claims for 8 |
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| 22 | 22 | | mediation; providing that the parties may mutually 9 |
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| 23 | 23 | | agree to conduct the mediation by teleconference or 10 |
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| 24 | 24 | | other electronic means; requiring all insureds, or 11 |
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| 25 | 25 | | their representatives, to personally attend the 12 |
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| 26 | 26 | | mediation; revising and specifying duties relating to 13 |
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| 27 | 27 | | bearing certain costs of mediation; requiring, rather 14 |
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| 28 | 28 | | than authorizing, the Department of Financial Services 15 |
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| 29 | 29 | | to adopt certain rules; authorizing the department to 16 |
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| 30 | 30 | | adopt certain emergency rules; requiring the 17 |
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| 31 | 31 | | policyholder to provide the insurer with any 18 |
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| 32 | 32 | | information and certain documents within a specified 19 |
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| 33 | 33 | | timeframe after mediation is invoked; revising 20 |
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| 34 | 34 | | conditions under which a policyholder has a certain 21 |
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| 35 | 35 | | timeframe to rescind a settlement; revising the 22 |
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| 36 | 36 | | definition of the term "claim"; providing and revising 23 |
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| 37 | 37 | | construction; amending s. 627.7074, F.S.; conforming a 24 |
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| 38 | 38 | | provision to changes made by the act; providing an 25 |
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| 40 | 40 | | HB 459 2025 |
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| 46 | 46 | | Page 2 of 9 |
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| 47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 50 | 50 | | |
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| 51 | 51 | | appropriation; providing effective dates. 26 |
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| 52 | 52 | | 27 |
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| 53 | 53 | | Be It Enacted by the Legislature of the State of Florida: 28 |
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| 54 | 54 | | 29 |
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| 55 | 55 | | Section 1. Section 627.7015, Florida Statutes, is amended 30 |
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| 56 | 56 | | to read: 31 |
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| 57 | 57 | | 627.7015 Mandatory mediation Alternative procedure for 32 |
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| 58 | 58 | | resolution of disputed property insurance claims. — 33 |
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| 59 | 59 | | (1) This section sets forth a nonadversarial alternative 34 |
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| 60 | 60 | | dispute resolution procedure for a mediated claim resolution 35 |
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| 61 | 61 | | conference prompted by the need for effective, fair, and timely 36 |
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| 62 | 62 | | handling of property insurance claims. There is a particular 37 |
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| 63 | 63 | | need for an informal, nonthreatening for um for helping parties 38 |
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| 64 | 64 | | who elect this procedure to resolve their claims disputes 39 |
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| 65 | 65 | | because most homeowner and commercial residential insurance 40 |
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| 66 | 66 | | policies obligate policyholders to participate in a potentially 41 |
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| 67 | 67 | | expensive and time-consuming adversarial appraisal process 42 |
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| 68 | 68 | | before litigation. The procedure set forth in this section is 43 |
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| 69 | 69 | | designed to bring the parties together for a mediated claims 44 |
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| 70 | 70 | | settlement conference without any of the trappings or drawbacks 45 |
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| 71 | 71 | | of an adversarial process. Before participating in resorting to 46 |
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| 72 | 72 | | these procedures, policyholders and insurers are encouraged to 47 |
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| 73 | 73 | | resolve claims as quickly and fairly as possible. This section 48 |
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| 74 | 74 | | applies is available with respect to claims under personal lines 49 |
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| 75 | 75 | | and commercial residential policies before commencing the 50 |
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| 83 | 83 | | Page 3 of 9 |
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| 84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 88 | 88 | | appraisal process and is a condition precedent to , or before 51 |
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| 89 | 89 | | commencing litigation. Mediation may be requested only by the 52 |
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| 90 | 90 | | policyholder, as a first -party claimant, a third -party, as an 53 |
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| 91 | 91 | | assignee of the policy benefits, or the insurer. However, An 54 |
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| 92 | 92 | | insurer is not required to participate in any mediation 55 |
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| 93 | 93 | | requested by a third -party assignee of the policy benefits. If 56 |
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| 94 | 94 | | requested by the policyholder, Participation by legal counsel is 57 |
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| 95 | 95 | | permitted. Mediation under this section is also required of 58 |
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| 96 | 96 | | available to litigants referred to the department by a county 59 |
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| 97 | 97 | | court or circuit court. This section does not apply to 60 |
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| 98 | 98 | | commercial coverages, to private passenger motor vehicle 61 |
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| 99 | 99 | | insurance coverages, or to disputes relating to liability 62 |
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| 100 | 100 | | coverages in policies of property insurance. 63 |
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| 101 | 101 | | (2) At the time of issuance and renewal of a policy or at 64 |
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| 102 | 102 | | the time a first-party claim within the scope of this section is 65 |
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| 103 | 103 | | filed by the policyholder, the insurer shall notify the 66 |
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| 104 | 104 | | policyholder of its right to participate in the mandatory 67 |
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| 105 | 105 | | mediation program unde r this section. A claim becomes eligible 68 |
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| 106 | 106 | | for mediation after the insurer complies with s. 627.70131(7) or 69 |
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| 107 | 107 | | elects to reinspect pursuant to s. 627.70152(4)(a)3. If the 70 |
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| 108 | 108 | | insurer has not complied with s. 627.70131(7) or elected to 71 |
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| 109 | 109 | | reinspect pursuant to s. 627.7 0152(4)(a)3. within 90 days after 72 |
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| 110 | 110 | | notice of the loss, the insurer may not require mediation under 73 |
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| 111 | 111 | | this section. This subsection does not impair the right of an 74 |
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| 112 | 112 | | insurance company to request mediation after a determination of 75 |
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| 120 | 120 | | Page 4 of 9 |
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| 121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 125 | 125 | | coverage pursuant to this sectio n or require appraisal or 76 |
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| 126 | 126 | | another method of alternative dispute resolution pursuant to s. 77 |
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| 127 | 127 | | 627.70152(4)(b). The department shall prepare a consumer 78 |
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| 128 | 128 | | information pamphlet for distribution to persons participating 79 |
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| 129 | 129 | | in mediation. 80 |
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| 130 | 130 | | (3) If the parties mutually ag ree, mediation may be 81 |
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| 131 | 131 | | conducted by teleconference or other electronic means in lieu of 82 |
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| 132 | 132 | | appearing in person. All named insureds, or their 83 |
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| 133 | 133 | | representatives, must attend the mediation, regardless of how it 84 |
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| 134 | 134 | | is conducted. The costs of mediation must be reasonabl e, and the 85 |
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| 135 | 135 | | insurer must bear all of the cost of conducting mediation 86 |
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| 136 | 136 | | conferences, except as otherwise provided in this section. If a 87 |
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| 137 | 137 | | named insured or his or her representative policyholder fails to 88 |
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| 138 | 138 | | appear at the conference, thus preventing the mediation fr om 89 |
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| 139 | 139 | | proceeding, the conference must be rescheduled upon the 90 |
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| 140 | 140 | | policyholder's payment of the costs of a rescheduled conference. 91 |
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| 141 | 141 | | If the insurer fails to appear at the conference, the insurer 92 |
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| 142 | 142 | | must pay the policyholder's actual cash expenses incurred in 93 |
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| 143 | 143 | | attending the conference if the insurer's failure to attend was 94 |
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| 144 | 144 | | not due to a good cause acceptable to the department. An insurer 95 |
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| 145 | 145 | | is will be deemed to have failed to appear if the insurer's 96 |
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| 146 | 146 | | representative lacks authority to settle the full value of the 97 |
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| 147 | 147 | | claim. The insurer shall incur an additional fee for a 98 |
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| 148 | 148 | | rescheduled conference necessitated by the insurer's failure to 99 |
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| 149 | 149 | | appear at a scheduled conference. The fees assessed by the 100 |
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| 157 | 157 | | Page 5 of 9 |
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| 158 | 158 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 159 | 159 | | |
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| 162 | 162 | | department must include a charge necessary to defray the 101 |
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| 163 | 163 | | expenses of the department related to its duties under this 102 |
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| 164 | 164 | | section and must be deposited in the Insurance Regulatory Trust 103 |
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| 165 | 165 | | Fund. The department may suspend the insurer's authority to 104 |
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| 166 | 166 | | appoint licensees if the insurer does not timely pay the 105 |
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| 167 | 167 | | required fees. If a party elects to request an ex pert or a 106 |
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| 168 | 168 | | representative to attend the mediation, that party must bear any 107 |
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| 169 | 169 | | costs for the attendance of the expert or representative. 108 |
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| 170 | 170 | | (4) The department shall adopt by rule a property 109 |
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| 171 | 171 | | insurance mediation program to be administered by the department 110 |
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| 172 | 172 | | or its designee. The department shall may also adopt special 111 |
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| 173 | 173 | | rules that which are applicable in cases of an emergency within 112 |
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| 174 | 174 | | this the state, including emergency rules as necessary to 113 |
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| 175 | 175 | | establish physical addresses for the mediation program in areas 114 |
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| 176 | 176 | | affected by natural disasters. The rules shall be modeled after 115 |
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| 177 | 177 | | practices and procedures set forth in mediation rules of 116 |
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| 178 | 178 | | procedure adopted by the Supreme Court. The rules shall provide 117 |
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| 179 | 179 | | for: 118 |
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| 180 | 180 | | (a) Reasonable requirements requirement for processing and 119 |
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| 181 | 181 | | scheduling of reques ts for mediation. 120 |
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| 182 | 182 | | (b) Qualifications for and, denial of application, and 121 |
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| 183 | 183 | | suspension and, revocation of its approval, and other penalties 122 |
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| 184 | 184 | | for mediators as provided in s. 627.745 and the Florida Rules 123 |
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| 185 | 185 | | for Certified and Court -Appointed Mediators. 124 |
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| 186 | 186 | | (c) Provisions governing who may attend mediation 125 |
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| 194 | 194 | | Page 6 of 9 |
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| 195 | 195 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 196 | 196 | | |
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| 197 | 197 | | |
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| 198 | 198 | | |
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| 199 | 199 | | conferences. 126 |
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| 200 | 200 | | (d) Selection of mediators. 127 |
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| 201 | 201 | | (e) Criteria for the conduct of mediation conferences. 128 |
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| 202 | 202 | | (f) Right to legal counsel. 129 |
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| 203 | 203 | | (5)(a) All statements made and documents produced at a 130 |
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| 204 | 204 | | mediation conference shall be deemed to be settlement 131 |
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| 205 | 205 | | negotiations in anticipation of litigation within the scope of 132 |
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| 206 | 206 | | s. 90.408. All parties to the mediation must negotiate in good 133 |
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| 207 | 207 | | faith and must have the au thority to immediately settle the 134 |
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| 208 | 208 | | claim. Mediators are deemed to be agents of the department and 135 |
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| 209 | 209 | | shall have the immunity from suit provided in s. 44.107. 136 |
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| 210 | 210 | | (b) Within 10 days after mediation is invoked, the 137 |
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| 211 | 211 | | policyholder must provide to the insurer any info rmation and 138 |
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| 212 | 212 | | supporting documents that serve as the basis for the claim. 139 |
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| 213 | 213 | | (6)(a) Mediation is nonbinding; however, if a written 140 |
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| 214 | 214 | | settlement is reached and the policyholder is not represented by 141 |
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| 215 | 215 | | an attorney or a public adjuster , the policyholder has 3 142 |
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| 216 | 216 | | business days within which the policyholder may rescind the 143 |
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| 217 | 217 | | settlement unless the policyholder has cashed or deposited any 144 |
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| 218 | 218 | | check or draft disbursed to the policyholder for the disputed 145 |
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| 219 | 219 | | matters as a result of the conference. If a settlement agreement 146 |
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| 220 | 220 | | is reached and is not rescinded, it is binding and acts as a 147 |
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| 221 | 221 | | release of all specific claims that were presented in that 148 |
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| 222 | 222 | | mediation conference. 149 |
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| 223 | 223 | | (b) At the conclusion of the mediation, the mediator shall 150 |
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| 231 | 231 | | Page 7 of 9 |
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| 232 | 232 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 233 | 233 | | |
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| 234 | 234 | | |
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| 236 | 236 | | provide a written report of the results of mediation, including 151 |
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| 237 | 237 | | any settlement amount, to the insurer, the policyholder, and the 152 |
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| 238 | 238 | | policyholder's representative if the policyholder is represented 153 |
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| 239 | 239 | | at the mediation. 154 |
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| 240 | 240 | | (7) If the insurer fails to comply with subsection (2) by 155 |
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| 241 | 241 | | failing to notify a policyholder of its right to participate in 156 |
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| 242 | 242 | | the mandatory mediation program under this section or if the 157 |
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| 243 | 243 | | insurer requests the mediation, and the mediation results are 158 |
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| 244 | 244 | | rejected by either party, the policyholder is not required to 159 |
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| 245 | 245 | | submit to or participate in any contractual loss apprais al 160 |
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| 246 | 246 | | process of the property loss damage as a precondition to legal 161 |
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| 247 | 247 | | action for breach of contract against the insurer for its 162 |
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| 248 | 248 | | failure to pay the policyholder's claims covered by the policy. 163 |
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| 249 | 249 | | (8) The department may designate an entity or person to 164 |
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| 250 | 250 | | serve as administrator to carry out any of the provisions of 165 |
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| 251 | 251 | | this section and may take this action by means of a written 166 |
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| 252 | 252 | | contract or agreement. 167 |
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| 253 | 253 | | (9) For purposes of this section, the term "claim" refers 168 |
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| 254 | 254 | | to any dispute between an insurer and a policyholder relating to 169 |
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| 255 | 255 | | a material issue of fact other than a dispute: 170 |
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| 256 | 256 | | (a) With respect to which the insurer has a reasonable 171 |
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| 257 | 257 | | basis to suspect fraud; 172 |
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| 258 | 258 | | (b) When the insurer has determined , based on agreed-upon 173 |
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| 259 | 259 | | facts as to the cause of loss, there is no coverage under the 174 |
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| 260 | 260 | | policy; 175 |
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| 266 | 266 | | CODING: Words stricken are deletions; words underlined are additions. |
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| 268 | 268 | | Page 8 of 9 |
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| 269 | 269 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 270 | 270 | | |
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| 271 | 271 | | |
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| 272 | 272 | | |
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| 273 | 273 | | (c) With respect to which the insurer has a reasonable 176 |
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| 274 | 274 | | basis to believe that the policyholder has intentionally made a 177 |
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| 275 | 275 | | material misrepresentation of fact which is relevant to the 178 |
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| 276 | 276 | | claim, and the entire request for payment of a loss has been 179 |
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| 277 | 277 | | denied on the basis of the material misrepresentation; 180 |
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| 278 | 278 | | (d) With respect to which the amount in controversy is 181 |
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| 279 | 279 | | less than $500, unless the parties agree to mediate a dispute 182 |
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| 280 | 280 | | involving a lesser amount; or 183 |
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| 281 | 281 | | (e) With respect to a loss that does not comply with s. 184 |
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| 282 | 282 | | 627.70132. 185 |
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| 283 | 283 | | (10) Participation in mediation under this section before 186 |
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| 284 | 284 | | the policyholder's filing of a notice under s. 627.70152 does 187 |
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| 285 | 285 | | not prohibit or waive an insurer's right to invoke and 188 |
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| 286 | 286 | | participate in mediation under this section in response to the 189 |
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| 287 | 287 | | notice. 190 |
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| 288 | 288 | | Section 2. Subsection (3) of section 627.7074, Florida 191 |
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| 289 | 289 | | Statutes, is amended to read: 192 |
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| 290 | 290 | | 627.7074 Alternative procedure for resolution of disputed 193 |
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| 291 | 291 | | sinkhole insurance claims. — 194 |
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| 292 | 292 | | (3) If there is coverage available under the policy and 195 |
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| 293 | 293 | | the claim was submitt ed within the timeframe provided in s. 196 |
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| 294 | 294 | | 627.706(5), following the receipt of the report provided under 197 |
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| 295 | 295 | | s. 627.7073 or the denial of a claim for a sinkhole loss, the 198 |
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| 296 | 296 | | insurer shall notify the policyholder of his or her right to 199 |
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| 297 | 297 | | participate in the neutral eval uation program under this 200 |
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| 306 | 306 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 307 | 307 | | |
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| 308 | 308 | | |
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| 309 | 309 | | |
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| 310 | 310 | | section. Neutral evaluation supersedes the mediation alternative 201 |
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| 311 | 311 | | dispute resolution process under s. 627.7015 but does not 202 |
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| 312 | 312 | | invalidate the appraisal clause of the insurance policy. The 203 |
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| 313 | 313 | | insurer shall provide to the policyholder the consumer 204 |
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| 314 | 314 | | information pamphlet prepared by the department pursuant to 205 |
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| 315 | 315 | | subsection (1) electronically or by United States mail. 206 |
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| 316 | 316 | | Section 3. Effective July 1, 2025, for the 2025 -2026 207 |
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| 317 | 317 | | fiscal year, the sum of $1 million in recurring funds is 208 |
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| 318 | 318 | | appropriated from the Insurance Regulatory Trust Fund to the 209 |
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| 319 | 319 | | Department of Financial Services for the purpose of 210 |
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| 320 | 320 | | administering the amendment made by this act to s. 627.7015, 211 |
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| 321 | 321 | | Florida Statutes. 212 |
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| 322 | 322 | | Section 4. Except as otherwise expressly provided in this 213 |
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| 323 | 323 | | act and except for this section, which shall take effect July 1, 214 |
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| 324 | 324 | | 2025, this act shall take effect January 1, 2026. 215 |
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