The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

View Entire Chapter

F.S. 627.7074

627.7074 Alternative procedure for resolution of disputed sinkhole insurance claims.—

(1) The department shall:

(a) Certify and maintain a list of persons who are neutral evaluators.

(b) Prepare a consumer information pamphlet for distribution by insurers to policyholders which clearly describes the neutral evaluation process and includes information necessary for the policyholder to request a neutral evaluation.

(2) Neutral evaluation is available to either party if a sinkhole report has been issued pursuant to s. 627.7073. At a minimum, neutral evaluation must determine:

(a) Causation;

(b) All methods of stabilization and repair both above and below ground;

(d) Information necessary to carry out subsection (12).

(3) If there is coverage available under the policy and the claim was submitted within the timeframe provided in s. 627.706(5), following the receipt of the report provided under s. 627.7073 or the denial of a claim for a sinkhole loss, the insurer shall notify the policyholder of his or her right to participate in the neutral evaluation program under this section. Neutral evaluation supersedes the alternative dispute resolution process under s. 627.7015 but does not invalidate the appraisal clause of the insurance policy. The insurer shall provide to the policyholder the consumer information pamphlet prepared by the department pursuant to subsection (1) electronically or by United States mail.

(4) Neutral evaluation is nonbinding, but mandatory if requested by either party. A request for neutral evaluation may be filed with the department by the policyholder or the insurer on a form approved by the department. The request for neutral evaluation must state the reason for the request and must include an explanation of all the issues in dispute at the time of the request. Filing a request for neutral evaluation tolls the applicable time requirements for filing suit for 60 days following the conclusion of the neutral evaluation process or the time prescribed in s. 95.11, whichever is later.

(5) Neutral evaluation shall be conducted as an informal process in which formal rules of evidence and procedure need not be observed. A party to neutral evaluation is not required to attend neutral evaluation if a representative of the party attends and has the authority to make a binding decision on behalf of the party. All parties shall participate in the evaluation in good faith. The neutral evaluator must be allowed reasonable access to the interior and exterior of insured structures to be evaluated or for which a claim has been made. Any reports initiated by the policyholder, or an agent of the policyholder, confirming a sinkhole loss or disputing another sinkhole report regarding insured structures must be provided to the neutral evaluator before the evaluator’s physical inspection of the insured property.

(6) The insurer shall pay reasonable costs associated with the neutral evaluation. However, if a party chooses to hire a court reporter or stenographer to contemporaneously record and document the neutral evaluation, that party must bear such costs.

(7) Upon receipt of a request for neutral evaluation, the department shall provide the parties a list of certified neutral evaluators. The department shall allow the parties to submit requests to disqualify evaluators on the list for cause.

(a) The department shall disqualify neutral evaluators for cause based only on any of the following grounds:

1. A familial relationship within the third degree exists between the neutral evaluator and either party or a representative of either party.

2. The proposed neutral evaluator has, in a professional capacity, previously represented either party or a representative of either party in the same or a substantially related matter.

3. The proposed neutral evaluator has, in a professional capacity, represented another person in the same or a substantially related matter and that person’s interests are materially adverse to the interests of the parties. The term “substantially related matter” means participation by the neutral evaluator on the same claim, property, or adjacent property.

4. The proposed neutral evaluator has, within the preceding 5 years, worked as an employer or employee of any party to the case.

5. The proposed neutral evaluator has, within the preceding 5 years, worked for any entity that performed any sinkhole loss testing, review, or analysis for the property.

(b) The department shall deny an application for, or suspend or revoke its certification of, a neutral evaluator to serve in such capacity if the department finds that ¹any of the following grounds exist:

1. Lack of one or more of the qualifications specified in this section for approval or certification.

2. Material misstatement, misrepresentation, or fraud in obtaining or attempting to obtain the approval or certification.

3. Demonstrated lack of fitness or trustworthiness to act as a neutral evaluator.

4. Fraudulent or dishonest practices in the conduct of an evaluation or in the conduct of financial services business.

5. Violation of any provision of this code or of a lawful order or rule of the department, or aiding, instructing, or encouraging another party in committing such a violation.

(c) The parties shall appoint a neutral evaluator from the department list and promptly inform the department. If the parties cannot agree to a neutral evaluator within 14 business days, the department shall appoint a neutral evaluator from the list of certified neutral evaluators. The department shall allow each party to disqualify two neutral evaluators without cause. Upon selection or appointment, the department shall promptly refer the request to the neutral evaluator.

(d) Within 14 business days after referral, the neutral evaluator shall notify the policyholder and the insurer of the date, time, and place of the neutral evaluation conference. The conference may be held by telephone, if feasible and desirable. The neutral evaluator shall make reasonable efforts to hold the conference within 90 days after the receipt of the request by the department. Failure of the neutral evaluator to hold the conference within 90 days does not invalidate either party’s right to neutral evaluation or to a neutral evaluation conference held outside this timeframe.

(8) For policyholders not represented by an attorney, a consumer affairs specialist of the department or an employee designated as the primary contact for consumers on issues relating to sinkholes under s. 624.307(10)(a)5. shall be available for consultation to the extent that he or she may lawfully do so.

²(9) Evidence of an offer to settle a claim during the neutral evaluation process, as well as any relevant conduct or statements made in negotiations concerning the offer to settle a claim, is inadmissible to prove liability or absence of liability for the claim or its value.

(10) Regardless of when noticed, any court proceeding related to the subject matter of the neutral evaluation shall be stayed pending completion of the neutral evaluation and for 5 days after the filing of the neutral evaluator’s report with the court.

(11) If, based upon his or her professional training and credentials, a neutral evaluator is qualified to determine only disputes relating to causation or method of repair, the department shall allow the neutral evaluator to enlist the assistance of another professional from the neutral evaluators list not previously stricken, who, based upon his or her professional training and credentials, is able to provide an opinion as to other disputed issues. A professional who would be disqualified for any reason listed in subsection (7) must be disqualified. The neutral evaluator may also use the services of professional engineers and professional geologists who are not certified as neutral evaluators, as well as licensed building contractors, in order to ensure that all items in dispute are addressed and the neutral evaluation can be completed. Any professional engineer, professional geologist, or licensed building contractor retained may be disqualified for any of the reasons listed in subsection (7). The neutral evaluator may request the entity that performed the investigation pursuant to s. 627.7072 perform such additional and reasonable testing as deemed necessary in the professional opinion of the neutral evaluator.

(12) At the conclusion of the neutral evaluation, the neutral evaluator shall prepare a report describing all matters that are the subject of the neutral evaluation, including whether, in his or her opinion, the sinkhole loss has been verified or eliminated within a reasonable degree of professional probability and, if verified, whether the sinkhole activity caused structural damage to the covered building, and, if so, the need for and estimated costs of stabilizing the land and any covered buildings and other appropriate remediation or necessary building repairs due to the sinkhole loss. The evaluator’s report shall be sent to all parties and to the department, within 14 days after completing the neutral evaluation conference.

(13) The recommendation of the neutral evaluator is not binding on any party, and the parties retain access to the court. The neutral evaluator’s written recommendation, oral testimony, and full report shall be admitted in any action, litigation, or proceeding relating to the claim or to the cause of action giving rise to the claim.

²(14) If the insurer timely agrees in writing to comply and timely complies with the recommendation of the neutral evaluator, but the policyholder declines to resolve the matter in accordance with the recommendation of the neutral evaluator pursuant to this section:

(a) The insurer is not liable for extracontractual damages related to a claim for a sinkhole loss but only as related to the issues determined by the neutral evaluation process. This section does not affect or impair claims for extracontractual damages unrelated to the issues determined by the neutral evaluation process contained in this section; and

(b) The actions of the insurer are not a confession of judgment or admission of liability.

(15) If the insurer agrees to comply with the neutral evaluator’s report, payments shall be made in accordance with the terms and conditions of the applicable insurance policy pursuant to s. 627.707(5).

(16) Neutral evaluators are deemed to be agents of the department and have immunity from suit as provided in s. 44.107.

(17) The department shall adopt rules of procedure for the neutral evaluation process and adopt rules for certifying, denying certification of, suspending certification of, and revoking the certification as a neutral evaluator.

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

History.—s. 29, ch. 2006-12; s. 27, ch. 2011-39; s. 7, ch. 2014-86; s. 30, ch. 2014-123; s. 6, ch. 2015-135; s. 18, ch. 2016-132; s. 42, ch. 2017-3; s. 19, ch. 2022-271; s. 36, ch. 2023-144.

¹Note.—As amended by s. 7, ch. 2014-86. The amendment by s. 30, ch. 2014-123, uses the words “one or more” instead of the word “any.”

²Note.—Section 23, ch. 2023-172, provides that “[c]hapter 2022-271, Laws of Florida, shall not be construed to impair any right under an insurance contract in effect on or before the effective date of that chapter law. To the extent that chapter 2022-271, Laws of Florida, affects a right under an insurance contract, that chapter law applies to an insurance contract issued or renewed after the applicable effective date provided by the chapter law. This section is intended to clarify existing law and is remedial in nature.”

F.S. 627.7074 on Google Scholar

F.S. 627.7074 on Casetext

Amendments to 627.7074

Arrestable Offenses / Crimes under Fla. Stat. 627.7074

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 627.7074.

Annotations, Discussions, Cases:

Cases from cite.case.law:

OLD DOMINION INSURANCE COMPANY, v. TIPTON, 269 So. 3d 653 (Fla. App. Ct. 2019)

. . . See § 627.7074(10) ("Regardless of when noticed, any court proceeding related to the subject matter of . . . By its plain language, therefore, section 627.7074(10) does not stay that period. . . . Moreover, there is nothing within rule 1.442 indicating that a stay under section 627.7074(10) -or the . . . We reject the Tiptons' contention that interpreting section 627.7074(10) in this manner would lead to . . . We therefore hold that section 627.7074(10) does not stay rule 1.442(b)'s ninety-day waiting period for . . .

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). . . .

LANDERS, v. STATE FARM FLORIDA INSURANCE COMPANY,, 234 So. 3d 856 (Fla. Dist. Ct. App. 2018)

. . . considering the report of a neutral evaluator from the Department of Financial Services, pursuant to section 627.7074 . . .

OMEGA INSURANCE COMPANY, v. WALLACE, 224 So. 3d 864 (Fla. Dist. Ct. App. 2017)

. . . . § 627.7074, Fla. Stat. (2010). . . . . § 627.7074(12), (13). . . See, e.g., Shelton v. Liberty Mut. Fire Ins. Co., 25 Fla. L. . . .

DE LA FUENTE, v. FLORIDA INSURANCE GUARANTY ASSOCIATION,, 202 So. 3d 396 (Fla. 2016)

. . . See §§ 627.707, 627.7074, Fla. Stat. (2009). . . .

JOHNSON, v. OMEGA INSURANCE COMPANY,, 200 So. 3d 1207 (Fla. 2016)

. . . . § 627.7074, Fla. Stat. (2015). . . . Neutral evaluation is mandatory if requested by either party, section 627.7074(4), Fla. . . . . § 627.7074(6), Fla. Stat. . . . . § 627.7074(10), Fla. Stat. . . . . § 627.7074(12), Fla. Stat. . . .

CITIZENS PROPERTY INSURANCE CORPORATION, v. NUNEZ, 194 So. 3d 1064 (Fla. Dist. Ct. App. 2016)

. . . the policyholder does not. accept the repair recommendations of the insurer’s professional, section 627.7074 . . . See § 627.7074(4). . . . . §-627.7074(12). These recommendations are nonbinding. § 627.7074(13). . . . After the insureds sued Citizens, Citizens invoked the neutral evaluation process of section 627.7074 . . . Id. at 693 (quoting § 627.7074(13)). . . .

CASE v. TOWER HILL PRIME INSURANCE COMPANY,, 191 So. 3d 526 (Fla. Dist. Ct. App. 2016)

. . . Section 627.7074, Florida Statutes (2009), sets forth a process by which parties may resolve a sinkhole . . .

CITIZENS PROPERTY INSURANCE CORPORATION, v. BLAHA, 194 So. 3d 411 (Fla. Dist. Ct. App. 2016)

. . . While suit was pending, Citizens invoked the neutral evaluation procedure under section 627.7074, Florida . . .

CITIZENS PROPERTY INSURANCE CORPORATION, v. AMAT, 198 So. 3d 730 (Fla. Dist. Ct. App. 2016)

. . . their right to pursue their claim further through the neutral evaluation process, described in section 627.7074 . . .

SANCHEZ, v. TOWER HILL SIGNATURE INSURANCE,, 181 So. 3d 1211 (Fla. Dist. Ct. App. 2015)

. . . See § 627.7074, Fla. Stat. (2009). . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. v. LUSTRE, 163 So. 3d 624 (Fla. Dist. Ct. App. 2015)

. . . .”); § 627.7074, Fla. . . .

ROKER, v. TOWER HILL PREFERRED INSURANCE CO., 164 So. 3d 690 (Fla. Dist. Ct. App. 2015)

. . . Pursuant to section 627.7074(12), when neutral evaluation is invoked the neutral evaluator must determine . . . Importantly, neutral evaluation is nonbinding, “and the parties retain access to court.” § 627.7074(13 . . . she obtains “a judgment that is more favorable than the recommendation of the neutral evaluator.” § 627.7074 . . .

CUEVAS, v. TOWER HILL SIGNATURE INSURANCE COMPANY f k a, 173 So. 3d 986 (Fla. Dist. Ct. App. 2015)

. . . As a result, Tower Hill initiated the neutral evaluation process pursuant to section 627.7074, Florida . . . Tower Hill contended that section 627.7074 prohibits the initiation of judicial proceedings until the . . . Cuevas’ policy specifically incorporated section 627.7074(10), making it a term and condition of the . . . Section 627.7074(10) provides as follows: “Regardless of when noticed, any court proceeding related to . . . This court has previously held that section 627.7074 “provides neutral evaluation as both a potential . . .

CURTIS v. TOWER HILL PRIME INSURANCE CO., 154 So. 3d 1193 (Fla. Dist. Ct. App. 2015)

. . . two motions granted by the circuit court were captioned “No Payment Owed” and “Violation of Section 627.7074 . . . neutral evaluation and for 5 days after the filing of the neutral evaluator’s report with the court.” § 627.7074 . . .

IN RE B. SIMMONS, C., 520 B.R. 136 (Bankr. M.D. Fla. 2014)

. . . prior to the expiration of the 60-day cure period, State Farm requested a neutral evaluation under § 627.7074 . . .

HERRERA v. TOWER HILL PREFERRED INSURANCE COMPANY,, 161 So. 3d 565 (Fla. Dist. Ct. App. 2014)

. . . Tower Hill also advised them that they could participate in neutral evaluation pursuant to section 627.7074 . . . That section provides, in pertinent part, as follows: 627.7074 Alternative procedure for resolution of . . . alternative dispute resolution or neutral evaluation for disputed sinkhole insurance claims provided by F.S. 627.7074 . . .

OMEGA INSURANCE COMPANY, v. JOHNSON,, 207 So.3d 245 (Fla. Dist. Ct. App. 2014)

. . . . § 627.7074. . . . Id. § 627.7074(5). . . . Id. § 627.7074(4); State Farm Fla. Ins. Co. v. . . . Id. § 627.7074(4). . . . See § 627.7074(13), Fla. Stat. (2009). . . .

CITIZENS PROPERTY INSURANCE CORPORATION, a v. KING,, 161 So. 3d 463 (Fla. Dist. Ct. App. 2014)

. . . trial court’s order sustaining Donna King’s objection to Citizen’s notice of stay pursuant to section 627.7074 . . . statutory neutral evaluation process and filed a notice of stay with the trial court pursuant to section 627.7074 . . . See § 627.7074(3). The trial court sustained Ms. . . . to stay the underlying proceedings pending completion of neutral evaluation, as required by section 627.7074 . . .

CITIZENS PROPERTY INSURANCE CORPORATION, a v. BELLAS,, 147 So. 3d 1019 (Fla. Dist. Ct. App. 2014)

. . . argues that the amended stay provision of the neutral evaluation statute that is set forth in section 627.7074 . . .

FLORIDA INSURANCE GUARANTY ASSOCIATION, INC. f k a v. BERNARD,, 140 So. 3d 1023 (Fla. Dist. Ct. App. 2014)

. . . FIGA subsequently invoked the “neutral evaluation” dispute resolution process in section 627.7074, Florida . . .

CITIZENS PROPERTY INSURANCE CORPORATION, a v. HANOS,, 161 So. 3d 424 (Fla. Dist. Ct. App. 2014)

. . . certiorari review of the trial court’s order denying its request for an automatic stay pursuant to section 627.7074 . . . Prior to trial, Citizens invoked the neutral evaluation process outlined in section 627.7074 and filed . . . the underlying proceedings pending the completion of the neutral evaluation as required by section 627.7074 . . .

CITIZENS PROPERTY INSURANCE CORPORATION, a v. FINLEY, 160 So. 3d 1286 (Fla. Dist. Ct. App. 2014)

. . . court to stay the court proceedings pending the completion of neutral evaluation pursuant to section 627.7074 . . .

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

. . . See § 627.7074(10). In response, Mr. . . . ” and a motion to determine the constitutionality of section 627.7074. . . . Section 627.7074 was enacted in 2006 and substantially amended in 2011. . . . Section 627.7074 contains both procedural and substantive aspects. . . . See § 627.7074(4); cf. Williams, 62 So.3d at 1135-36. . . .

GONZALEZ v. LIBERTY MUTUAL FIRE INSURANCE COMPANY,, 981 F. Supp. 2d 1219 (M.D. Fla. 2013)

. . . Chapter 2011-39, Section 21, Laws of Florida, “In 2005, the Legislature revised [Sections] 627.706-627.7074 . . . Certain other revisions to ss. 627.706-627.7074, Florida Statutes, are enacted to advance legislative . . . If denying a claim, the insurer must inform the insured of the right to proceed under Section 627.7074 . . . Section 627.7074(12) requires the neutral evaluator to opine about the “estimated costs of stabilizing . . . Stat. § 627.706(2) ("As used in [Sections] 627.706-627.7074, and as used in connection with any policy . . .

FLORIDA FARM BUREAU CASUALTY INSURANCE COMPANY v. STATE OFFICE OF INSURANCE REGULATION,, 109 So. 3d 860 (Fla. Dist. Ct. App. 2013)

. . . The amendments to 627.706 through 627.7074 primarily clarified and added technical or scientific provisions . . .

SUNSHINE STATE INSURANCE COMPANY, v. BENJAMIN, 100 So. 3d 90 (Fla. Dist. Ct. App. 2012)

. . . petitions this court for certiorari review of the circuit court’s non-final order ruling that section 627.7074 . . . unconstitutional, and thus the circuit court departed from the essential requirements of law by finding section 627.7074 . . .

STATE FARM FLORIDA INSURANCE COMPANY, v. BUITRAGO, 100 So. 3d 85 (Fla. Dist. Ct. App. 2012)

. . . petitions this court for certio-rari review of a nonfinal order from the circuit court ruling that section 627.7074 . . . We hold that the circuit court departed from the essential requirements of law by finding section 627.7074 . . . State Farm then requested a neutral evaluation, and pursuant to section 627.7074(4), the Department of . . . The Buitragos objected to State Farm’s request for a neutral evaluation, alleging that section 627.7074 . . . Discussion The legislature explicitly enacted the neutral evaluation process under section 627.7074 “ . . .

STATE FARM FLORIDA INSURANCE COMPANY, v. COLELLA,, 95 So. 3d 891 (Fla. Dist. Ct. App. 2012)

. . . a disclosure of the insured’s right to participate in the neutral evaluation program under section 627.7074 . . . It relied on section 627.7074, which provides that such evaluation is “nonbinding, but mandatory if requested . . . See § 627.7074(4). Ms. . . . See § 627.7074(4). When State Farm filed its request, Ms. . . .

CRUZ v. COOPERATIVA DE SEGUROS MULTIPLES DE PUERTO RICO, INC., 76 So. 3d 394 (Fla. Dist. Ct. App. 2011)

. . . , in pertinent part, as follows: 627.7074. . . . See § 627.7074(11). The Department provided a list of certified evaluators. See § 627.7074(7). . . . See § 627.7074(7). . . . See § 627.7074(13), (15)(b). . . . See § 627.7074(5). . . .

MOREJON v. AMERICAN SECURITY INSURANCE COMPANY,, 829 F. Supp. 2d 1258 (M.D. Fla. 2011)

. . . On November 7, 2011, Defendant invoked the neutral evaluation process pursuant to section 627.7074 of . . . In accordance with section 627.7074, Defendant now seeks to stay this action pending the resolution of . . . Stat. § 627.7074, n. 1. . . . Therefore, the provisions of section 627.7074 do apply in this case. . . . Plaintiffs’ challenges to the constitutionality of section 627.7074 are without merit. . . .

BAY FARMS CORPORATION, v. GREAT AMERICAN ALLIANCE INSURANCE COMPANY,, 835 F. Supp. 2d 1227 (M.D. Fla. 2011)

. . . As amended, section 627.706 provides: (2) As used in ss. 627.706-627.7074 and as used in connection with . . . assessments on policyholders throughout the state. (2) In 2005, the Legislature revised ss. 627.706-627.7074 . . . Certain other revisions to ss. 627.706-627.7074, Florida Statutes, are enacted to advance legislative . . . The amendments made by this act to ss. 627.706-627.7074, Florida Statutes, and the accompanying legislative . . . Amendments made by this act to ss. 627.706-627.7074, Florida Statutes, and the accompanying legislative . . .