Title: Hurricane Property Insurance Claim Mediation

Summary: Establishing Hurricane Property Insurance Claim Alternate Dispute Resolution Program; providing requirements for program participation & Office of Insurance Regulation.

Full Text:
An act relating to hurricane property insurance claim mediation; creating s. 627.70154, F.S.; providing legislative purpose and findings; establishing the Hurricane Property Insurance Claim Alternate Dispute Resolution Program within the Office of Insurance Regulation; providing requirements for mediators, insurers, and insureds to participate in the program; requiring the office to maintain a list of participating mediators; providing requirements for insurers and insureds; requiring insurers to provide a disclosure form with program information to certain insureds; providing construction; requiring the Department of Financial Services to adopt rules to administer the program; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 627.70154, Florida Statutes, is created to read: 627.70154 The Hurricane Property Insurance Claim Alternate Dispute Re solution Program.-(1) LEGISLATIVE PURPOSE AND FINDINGS.-(a) The purpose of the Hurricane Property Insurance Claim Alternate Dispute Resolution Program is to provide a HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE Snonadversarial alternative dispute resolution procedure that is prompted by the nee dfor effective, fair, and timely handling of residential property insurance claims for residential properties that are damaged by a hurricane. (b) The Legislature finds that the program is a valid public purpose providing citizens of the state an altern ate resolution dispute program to assist in resolving residential property insurance claims in a timely manner and at a lower cost. (2) PROGRAM ESTABLISHMENT.-The Hurricane Property Insurance Claim Alternate Dispute Resolution Program is established with in the Office of Insurance Regulation. (3) PROGRAM PARTICIPATION.-(a) Every insured may, at his or her discretion, request mediation through the program if he or she has a residential property insurance claim for property damage that involves disputed amounts up to $150,000 for damage to property located within the geographic area that is the subject of the declared state of emergency for a named storm and the insured has a claim. However, if the disputed amounts are in excess of $150,000, the insured and insurer must both agree to mediation through the program and be subject to the requirements of this section if the property is located within the geographic area that is the subject of the declared state of emergency for a named storm event. HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE S(b) If the insured decides to mediate a damage dispute through the program, the insured shall contact one of the participating mediators listed on the Office of Insurance Regulation's website. (4) MEDIATOR AND MEDIATION REQUIREMENTS.-(a) A mediator that elect sto participate in the program must comply with all of the following: 1. The mediator must contact the Office of Insurance Regulation for inclusion in the program and provide the office with the mediator's official name, contact information, address, e-mail address, and telephone number. 2. The mediator must agree to all of the requirements of this section. 3. The cost of the mediation must be reasonable. (b) Upon receiving an assignment through the program, a mediator: 1. Within business days after receiving an assignment through the program, must contact the insurer and the insured to notify both that the mediator has been selected to mediate the insurer's claim. 2. Must set a date for mediation within days after receiving the assignment. 3. Is in charge of the mediation and must establish and describe the mediation procedures. The mediator shall conduct the mediation in accordance with the standards of professional HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sconduct for mediation adopted by the American Bar Association. 4. May meet with the insurer and the insured separately to encourage meaningful communications, negotiations, and otherwise assist the insurer and the insured to arrive at a settlement. 5. Must, when conducting in-person mediation, conduct such mediation statew ide in a metropolitan statistical area at an office or business location to be selected by the mediator. The insured may not be charged for use of a venue. The insurer or the insured may participate in the mediation remotely via telephone, video conference,or other similar electronic means if notification is provided to all parties, including the mediator, in advance of the mediation. The mediation session may last up to minutes of actual mediation with the insurer and the insured. The minutes may no tinclude time spent on telephone calls, document review, research, or any other administrative tasks the mediator finds necessary to prepare for the mediation. (c)1. Mediation through the program is voluntary and nonbinding. Any agreement between the in surer and the insured shall be produced in writing. The insurer and the insured shall sign the agreement signifying the portions of the claim dispute which have been resolved in whole or in part. 2. If a whole or partial settlement is reached, the insured shall have business days within which to rescind the settlement unless the insured has cashed or deposited any check HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sor draft disbursed to the insured for the disputed matters as a result of the mediation conference. If a settlement agreement is reached and is not rescinded, the written settlement agreement shall be binding and shall act as a release of all specific claims that were presented in the mediation conference. 3. The insurer shall disburse to the insured the specific dollar amount agreed to within days after the conclusion of the mediation. 4. If the insurer and the insured reach a partial agreement as to the disputed claim, the insurer and the insured may continue to use the service of the mediator after the parties have completed volu ntary mediation under the program. If the insurer and the insured agree to further mediation, both parties are responsible for any additional mediation expenses at the mediator's standard rate. (5) OFFICE OF INSURANCE REGULATION REQUIREMENTS.-The Office of Insurance Regulation shall maintain a list of mediators that elect to participate in the program, including the information required in subparagraph (5)(a)1. (6) INSURER AND INSURED REQUIREMENTS.-An insurer and insured who elects to participate in th eprogram must agree to the following conditions: (a) The insurer shall bear all of the reasonable costs necessary to conduct mediation conferences, except if the insured fails to appear at the mediation conference. If the HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sinsured fails to appear, the co nference shall be rescheduled upon payment of the costs of a reschedule mediation conference by the insured. (b) If the insurer fails to appear at the mediation conference, the insurer must pay the insured's actual cash expenses up to $250 for expenses i ncurred in traveling to and from the mediation conference and must also pay the costs of to reschedule the mediation conference. An insurer who fails to appear at the mediation conference may be in violation of s. 626.9541 unless such failure to appear was due to good cause. An insurer's representative who appears at the mediation conference without settlement authority is considered failure to appear at the mediation conference. (c) The insurer must provide the mediator with all of the following: 1. The insured's name, address, e-mail address, if applicable, and telephone number and the address of the property if such address is different from the address given by the insured. 2. The claim number of the insured. 3. A brief description of the dispute.4. The name, address, e-mail address, and telephone number of the insurer's contact for scheduling the mediation. 5. Information with respect to any other policies issued by the insurer to the insured that may provide coverage of the HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE Sinsured property for named perils like flood or windstorm. (d) Within business days after the mediator contacts the insurer and the insured, the insurer and the insured must provide the mediator all relevant written documentation regarding the disputed claim and a sho rt statement as to why the parties have not been able to reach an amicable resolution. The mediator may request additional documentation from the insurer or the insured. The insurer and the insured must comply with any reasonable requests for additional do cumentation or give an explanation as to the reason the insurer or the insured is not able to comply with the request. (e) The insured may be represented by an attorney or other representative in the mediation and the insured must provide the name and co ntact information for the attorney or other representative to the mediator at least days before the date of the mediation. (f) All parties must negotiate in good faith. (g) The insurer and the insured shall be given an opportunity to present each sid eof the dispute and each side may use any relevant documents and bring any individuals with knowledge of the issues, including adjusters, appraisers, or contractors, to address the mediator. All statements made and documents produced at the mediation conf erence shall be considered settlement negotiations in anticipation of litigation. HB 7A 2022A hb0007a FL OR I DA HO US EO FR EP RE SE NT A TI VE S(7) DISCLOSURE NOTICE.-If the Governor declares a state of emergency for a named windstorm event, an insurer writing residential property insurance in the state shall send a Hurricane Property Insurance Claim Alternate Dispute Resolution Program disclosure form to each insured who has filed a covered residential property insurance claim for property that is located within the geographic area of the named windstorm that is subject to the declared state of emergency. An insurer shall send the disclosure notice before the initial investigation by the United States Postal Service, e-mail, or hand delivery. (8) CONSTRUCTION AND APPLICABILITY.-(a) This section does not provide an insured with a civil cause of action. (b) This section does not apply to commercial insurance policies, private passenger motor vehicle insurance, or disputes relating to liability coverages in policies of property insurance. (9) RULEMAKING.-The Department of Financial Services shall adopt rules to implement this section. Section 2. This act shall take effect July 1, 2023.