The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

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F.S. 627.7015

627.7015 Alternative procedure for resolution of disputed property insurance claims.—

(1) This section sets forth a nonadversarial alternative dispute resolution procedure for a mediated claim resolution conference prompted by the need for effective, fair, and timely handling of property insurance claims. There is a particular need for an informal, nonthreatening forum for helping parties who elect this procedure to resolve their claims disputes because most homeowner and commercial residential insurance policies obligate policyholders to participate in a potentially expensive and time-consuming adversarial appraisal process before litigation. The procedure set forth in this section is designed to bring the parties together for a mediated claims settlement conference without any of the trappings or drawbacks of an adversarial process. Before resorting to these procedures, policyholders and insurers are encouraged to resolve claims as quickly and fairly as possible. This section is available with respect to claims under personal lines and commercial residential policies before commencing the appraisal process, or before commencing litigation. Mediation may be requested only by the policyholder, as a first-party claimant, a third-party, as an assignee of the policy benefits, or the insurer. However, an insurer is not required to participate in any mediation requested by a third-party assignee of the policy benefits. If requested by the policyholder, participation by legal counsel is permitted. Mediation under this section is also available to litigants referred to the department by a county court or circuit court. This section does not apply to commercial coverages, to private passenger motor vehicle insurance coverages, or to disputes relating to liability coverages in policies of property insurance.

(2) At the time of issuance and renewal of a policy or at the time a first-party claim within the scope of this section is filed by the policyholder, the insurer shall notify the policyholder of its right to participate in the mediation program under this section. A claim becomes eligible for mediation after the insurer complies with s. 627.70131(7) or elects to reinspect pursuant to s. 627.70152(4)(a)3. If the insurer has not complied with s. 627.70131(7) or elected to reinspect pursuant to s. 627.70152(4)(a)3. within 90 days after notice of the loss, the insurer may not require mediation under this section. This subsection does not impair the right of an insurance company to request mediation after a determination of coverage pursuant to this section or require appraisal or another method of alternative dispute resolution pursuant to s. 627.70152(4)(b). The department shall prepare a consumer information pamphlet for distribution to persons participating in mediation.

(3) The costs of mediation must be reasonable, and the insurer must bear all of the cost of conducting mediation conferences, except as otherwise provided in this section. If a policyholder fails to appear at the conference, the conference must be rescheduled upon the policyholder’s payment of the costs of a rescheduled conference. If the insurer fails to appear at the conference, the insurer must pay the policyholder’s actual cash expenses incurred in attending the conference if the insurer’s failure to attend was not due to a good cause acceptable to the department. An insurer will be deemed to have failed to appear if the insurer’s representative lacks authority to settle the full value of the claim. The insurer shall incur an additional fee for a rescheduled conference necessitated by the insurer’s failure to appear at a scheduled conference. The fees assessed by the department must include a charge necessary to defray the expenses of the department related to its duties under this section and must be deposited in the Insurance Regulatory Trust Fund. The department may suspend the insurer’s authority to appoint licensees if the insurer does not timely pay the required fees.

(4) The department shall adopt by rule a property insurance mediation program to be administered by the department or its designee. The department may also adopt special rules which are applicable in cases of an emergency within the state. The rules shall be modeled after practices and procedures set forth in mediation rules of procedure adopted by the Supreme Court. The rules shall provide for:

(a) Reasonable requirement for processing and scheduling of requests for mediation.

(b) Qualifications, denial of application, suspension, revocation of approval, and other penalties for mediators as provided in s. 627.745 and the Florida Rules for Certified and Court-Appointed Mediators.

(d) Selection of mediators.

(e) Criteria for the conduct of mediation conferences.

(f) Right to legal counsel.

(5) All statements made and documents produced at a mediation conference shall be deemed to be settlement negotiations in anticipation of litigation within the scope of s. 90.408. All parties to the mediation must negotiate in good faith and must have the authority to immediately settle the claim. Mediators are deemed to be agents of the department and shall have the immunity from suit provided in s. 44.107.

(6)(a) Mediation is nonbinding; however, if a written settlement is reached, the policyholder has 3 business days within which the policyholder may rescind the settlement unless the policyholder has cashed or deposited any check or draft disbursed to the policyholder for the disputed matters as a result of the conference. If a settlement agreement is reached and is not rescinded, it is binding and acts as a release of all specific claims that were presented in that mediation conference.

(b) At the conclusion of the mediation, the mediator shall provide a written report of the results of mediation, including any settlement amount, to the insurer, the policyholder, and the policyholder’s representative if the policyholder is represented at the mediation.

(7) If the insurer fails to comply with subsection (2) by failing to notify a policyholder of its right to participate in the mediation program under this section or if the insurer requests the mediation, and the mediation results are rejected by either party, the policyholder is not required to submit to or participate in any contractual loss appraisal process of the property loss damage as a precondition to legal action for breach of contract against the insurer for its failure to pay the policyholder’s claims covered by the policy.

(8) The department may designate an entity or person to serve as administrator to carry out any of the provisions of this section and may take this action by means of a written contract or agreement.

(9) For purposes of this section, the term “claim” refers to any dispute between an insurer and a policyholder relating to a material issue of fact other than a dispute:

(a) With respect to which the insurer has a reasonable basis to suspect fraud;

(b) When, based on agreed-upon facts as to the cause of loss, there is no coverage under the policy;

(c) With respect to which the insurer has a reasonable basis to believe that the policyholder has intentionally made a material misrepresentation of fact which is relevant to the claim, and the entire request for payment of a loss has been denied on the basis of the material misrepresentation;

(d) With respect to which the amount in controversy is less than $500, unless the parties agree to mediate a dispute involving a lesser amount; or

(e) With respect to a loss that does not comply with s. 627.70132.

History.—s. 20, ch. 93-410; s. 1186, ch. 2003-261; s. 2, ch. 2003-267; s. 2, ch. 2003-281; s. 15, ch. 2005-111; s. 14, ch. 2012-151; s. 4, ch. 2014-86; s. 28, ch. 2014-123; s. 8, ch. 2018-131; s. 15, ch. 2019-108; s. 28, ch. 2019-140; s. 11, ch. 2021-77; s. 35, ch. 2023-144.

F.S. 627.7015 on Google Scholar

F.S. 627.7015 on Casetext

Amendments to 627.7015

Arrestable Offenses / Crimes under Fla. Stat. 627.7015

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 627.7015.

Annotations, Discussions, Cases:

Cases from cite.case.law:

KENNEDY v. FIRST PROTECTIVE INSURANCE COMPANY d b a, 271 So. 3d 106 (Fla. App. Ct. 2019)

. . . and the Kennedys filed this appeal following the denial of their motion for reconsideration Section 627.7015 . . . See, § 627.7015 (2) & (7) ; see also, Universal Prop. & Cas. Ins. Co. v. . . . Frontline's actions are in derogation of the salutary purpose of section 627.7015, i.e., to expeditiously . . . As we stated in Colosimo, section 627.7015 furthers the "particular need for an informal, nonthreatening . . . a dispute has arisen, an insurer may not demand appraisal under the policy and pursuant to section 627.7015 . . .

FULLER, v. STATE, 257 So. 3d 521 (Fla. App. Ct. 2018)

. . . Therefore, the presumption against retroactive application of the substantive amendments to section 627.7015 . . .

STATE DEPARTMENT OF FINANCIAL SERVICES, v. DANAHY MURRAY, P. A. PLLC,, 246 So. 3d 466 (Fla. App. Ct. 2018)

. . . See §§ 627.7015 & 627.7074, Fla. Stat. (2016). . . .

STATE FARM FLORIDA INSURANCE COMPANY, v. LIME BAY CONDOMINIUM, INC., 187 So. 3d 932 (Fla. Dist. Ct. App. 2016)

. . . Subsection 627.7015(7) provides that the insured is not required to participate in the appraisal process . . . As previously noted, subsection 627.7015(7) states that the insured is not required to participate in . . . State Farm filed an affidavit stating that it complied with subsection 627.7015(2)’s requirements by . . . Subsections 627.7015(2) and (9) must be read together. . . . The facts of this case do not meet any of the exceptions listed in subsection 627.7015(9). . . .

CITIZENS PROPERTY INSURANCE CORPORATION, a v. TRAPEO,, 136 So. 3d 670 (Fla. Dist. Ct. App. 2014)

. . . evaluation is available to either party,” “supersedes the alternative dispute resolution process under s. 627.7015 . . . expressly states that “[n]eutral evaluation supersedes the alternative dispute resolution process under s. 627.7015 . . . Section 627.7015 discusses its “nonadversarial alternative dispute resolution procedure” as a substitute . . . There would be no need for neutral evaluation to supersede section 627.7015 if the two provided the same . . .

SUBIRATS, v. FIDELITY NATIONAL PROPERTY,, 106 So. 3d 997 (Fla. Dist. Ct. App. 2013)

. . . In 1993, the Florida Legislature added section 627.7015 to the Florida Insurance Code. . . . The law provided in pertinent part: 627.7015. . . . (f) Right to legal counsel. § 627.7015, Fla. Stat. (1998). . . . . § 627.7015(7), Fla. Stat. (2005). . . . That rule, adopted pursuant to section 627.7015(4), states: “Within five days of the insured filing a . . .

FIRST PROTECTIVE INSURANCE COMPANY, v. SCHNEIDER FAMILY PARTNERSHIP,, 104 So. 3d 1115 (Fla. Dist. Ct. App. 2012)

. . . its own motion for summary judgment on its claim for declaratory relief asserting that under section 627.7015 . . . The trial court agreed with Schneider’s interpretation of section 627.7015 and rule 69J-2.003(10) and . . . Section 627.7015 provides an alternative procedure for resolution of disputed property insurance claims . . . reliance on such an administrative rule is error in that it improperly modifies and expands section 627.7015 . . . See id. at 394-95 (holding that section 627.7015 only contemplates a waiver of an appraisal when an insurer . . .

AMERICAN INTEGRITY INSURANCE COMPANY OF FLORIDA, v. GAINEY,, 100 So. 3d 720 (Fla. Dist. Ct. App. 2012)

. . . Enacted in 1993, section 627.7015 provides an alternative procedure for resolution of disputed property . . . (citing § 627.7015(2), Fla. Stat. (1994 Supp.)). . . . Here, Gainey sought to enforce the following provision of section 627.7015(7) to preclude American from . . . However, the express language of section 627.7015(1) describes mediation as a viable option before an . . . Ass’n, 26 So.3d 610, 613 (Fla. 4th DCA 2009) (quoting § 627.7015(1) (emphasis added)). . . .

STATE FARM FLORIDA INSURANCE COMPANY, v. UNLIMITED RESTORATION SPECIALISTS, INC., 84 So. 3d 390 (Fla. Dist. Ct. App. 2012)

. . . In the view of Unlimited Restoration, section 627.7015(7), Florida Statutes (2008), rendered the appraisal . . . Section 627.7015 reads in pertinent part as follows: (2) At the time a first-party claim within the scope . . . circuit court affirmed the denial of the motion to dismiss or compel appraisal after examining section 627.7015 . . . Section 627.7015 contemplates a waiver of the appraisal process by the insurer under two conditions. . . . Section 627.7015(1), Florida Statutes, sets forth the purpose and scope of the statute. . . .

GASSMAN, v. STATE FARM FLORIDA INSURANCE COMPANY,, 77 So. 3d 210 (Fla. Dist. Ct. App. 2011)

. . . State Farm argues that it did not violate section 627.7015 because there was never a “dispute between . . . an insurer and an insured relating to a material issue of fact.” § 627.7015(9), Fla. . . . Section 627.7015 provides for an alternative procedure for resolution of disputed property insurance . . . On appeal, the district court cites to the subsections of section 627.7015 set out above and Florida . . . The rule implements section 627.7015 and specifies that: 1. . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. v. DEVON NEIGHBORHOOD ASSOCIATION, INC. d b a A- J, 67 So. 3d 187 (Fla. 2011)

. . . Thus, we turn next to a discussion of the 2005 amendments to section 627.7015, Florida Statutes. . . . Section 627.7015, Florida Statutes Section 627.7015 was first enacted in 1993. . . . See § 627.7015(1), Fla. Stat. (1994 Supp.). . . . See § 627.7015(2), Fla. Stat. (1994 Supp.). . . . The stated effective date of the amendments to section 627.7015 was July 1, 2005. . . .

UNIVERSAL PROPERTY AND CASUALTY INSURANCE COMPANY, v. COLOSIMO, 61 So. 3d 1241 (Fla. Dist. Ct. App. 2011)

. . . See § 627.7015, Fla. Stat. (2009); Fla. Admin. Code R. 69-166.031. . . . Stat. § 627.7015(2). The statute squarely puts the responsibility of notification on the insurer. . . . In addition, Universal, produced no evidence that it had complied with section 627.7015. . . . See § 627.7015(2) & (7), Fla. Stat. (2009). . . . See § 627.7015(7). Accordingly, the trial court’s order denying Universal’s Motion is affirmed. . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. v. DEVON NEIGHBORHOOD ASSOCIATION INC. d b a A- J, 33 So. 3d 48 (Fla. Dist. Ct. App. 2009)

. . . its right to an appraisal by participating in the lawsuit and also by failing to comply with section 627.7015 . . . Section 627.7015 establishes a mediation alternative for the handling of property insurance claims. . . . Upon receiving a claim, the insurer must notify the claimant of its right to mediation. § 627.7015(2) . . . It is undisputed that the notice provisions of section 627.7015(2) were not complied with in this case . . . One of the duties of the insurer was compliance with the provisions of section 627.7015. . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. v. SHADOW WOOD CONDOMINIUM ASSOCIATION, a, 26 So. 3d 610 (Fla. Dist. Ct. App. 2009)

. . . This case turns on the applicability of section 627.7015, Florida Statutes (2005), to the terms of the . . . in the mediation program under” section 627.7015 “[a]t the time a first-party claim within the scope . . . of this section is filed.” § 627.7015(2), Fla. . . . If an insurer fails to comply with the section 627.7015(2) notice requirement, then the insured shall . . . FIGA is bound by Southern Family’s failure to give the section 627.7015 notice, so that section 627.7015 . . .

PAXTON v. GREAT AMERICAN INSURANCE COMPANY,, 650 F. Supp. 2d 1208 (S.D. Fla. 2009)

. . . St. § 627.7015(2). . . . Stat. § 627.7015(7). . . . Stat. § 627.7015(2).” DE 11, p. 2. . . . Stat. § 627.7015(2). This argument was not previously raised by Defendant. . . . Stat. § 627.7015(1). . . .

QBE INSURANCE CORP. v. DOME CONDOMINIUM ASSOCIATION, INC. d b a a, 577 F. Supp. 2d 1256 (S.D. Fla. 2008)

. . . The parties have twice submitted to the mediation program offered under Florida Statutes, section 627.7015 . . . because QBE never notified Dome of its right to participate in the mediation program set out in section 627.7015 . . . Section 627.7015(7) states that if the insurer fails to notify the insured of its right to participate . . . Stat. § 627.7015(2). The statute squarely puts the responsibility of notification on the insurer. . . .

FLORIDA SELECT INSURANCE COMPANY, v. KEELEAN,, 727 So. 2d 1131 (Fla. Dist. Ct. App. 1999)

. . . Florida Select rejected his demand and offered to mediate the matter pursuant to section 627.7015, Florida . . .