South Florida Injury Lawyer Blog
When a person buys insurance in Florida, whether it is auto insurance, home insurance, fire, flood, or hurricane coverage, they expect to receive financial compensation when they have a claim, as stipulated by the policy, and receive it in a timely manner. Unfortunately, that is not always the case when a policyholder submits a claim. Sometimes, insurers use various tactics to delay, deny, or under-compensate claims. This is not acceptable behavior; it is considered acting in “bad faith,” and you have legal recourse to recover your full policy coverage plus damages.
Florida has laws that govern how insurance companies interact with their policyholders. In a nutshell, bad faith actions may include:
- Unreasonable delays in responses and payments
- Failing to convey important information to the person making the claim
- Unreasonable delays in investigating the claim or knowingly failing to investigate
- Refusal to settle the claim, even when the liability is clear
- Misleading or pressuring a person into signing an agreement or a settlement
More specifically, the Florida Deceptive and Unfair Trade Practices Act in 2008 clarified specific behaviors and practices which it defines as “unfair methods of competition and unfair or deceptive acts” in Title XXXVII Chapter 626 of the Florida Statutes. This section of the statutes defines unfair insurance claim settlement practices as:
- Attempting to settle claims on the basis of an application, when serving as a binder or intended to become a part of the policy, or any other material document which was altered without notice to, or knowledge or consent of, the insured
- A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of settling such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy
- Failing to adopt and implement standards for the proper investigation of claims
- Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue
- Failing to acknowledge and act promptly upon communications with respect to claims
- Denying claims without conducting reasonable investigations based upon available information;
- Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed
- Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement
- Failing to promptly notify the insured of any additional information necessary for the processing of a claim
- Failing to clearly explain the nature of the requested information and the reasons why such information is necessary
- Failing to pay personal injury protection insurance claims within the time periods required by s. 627.736(4)(b).
- Failing to pay undisputed amounts of partial or full benefits owed under first-party property insurance policies (within a timely manner)
- Failure to maintain complaint-handling procedures (maintain complete records)
- Misrepresentation in insurance applications: false statements, intentional twisting, or making misleading or incomplete statements
As you can see, there are many specific ways that an insurance company can act in bad faith. These are just a small sampling of the behaviors that are listed in the law as unfair and deceptive.
Filing a Bad Faith claim
Fortunately, Florida law clearly states that “any person may bring a civil action against an insurer when such person is damaged.” However, the law also states that before you can take legal action, you must first present the insurer with your evidence of bad faith and your demands, giving them 60 days to respond to the written notice of violation.
The Florida Department of Financial Services provides the forms for making a bad faith claim. Once you submit the forms with all your evidence and documentation, the department has 20 days to accept them or return them for correction. After this, you submit them to the insurer, and their 60-day window to respond begins.
If you make a valid claim in Florida and the court finds in your favor, not only do you receive the compensation you deserve, but you will also receive compensation for damages, including court fees and attorney fees. On rare occasions, punitive damages may be added if there is evidence of truly egregious behavior on the part of the insurer that caused you demonstrable suffering.
As you can imagine, you will need the advice of an experienced attorney to help you through the process. As a Florida personal injury lawyer, I am committed to helping Florida residents throughout the state receive just and fair compensation to help them cope with the injuries they have sustained through someone else’s negligence.
Our office will procure the correct documentation from the state and work with you to collect all the evidence needed to prove bad faith. This will include any records of conversations you’ve had with the insurer, all paperwork you have received from the insurer, your complete policy coverage, any evidence you have of intentional delay, intimidation, misinformation, or coercion tactics, and more.
Don’t wait to get the help you need if your insurer is not providing you with the coverage you think you deserve. Contact me today, 24/7, at (954) 448-7288, to see how I can help you.