HB 751 — Duty of Good Faith

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 HBCS/HB 751 2019 A bill to be entitled An act relating to duty of good faith;

providing procedures for administrative hearing of complaints;

providing procedures for judicial review of administrative orders;

authorizing rulemaking by the Division of Administrative Hearings;

providing for judicial enforcement;

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Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;

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Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;

1.2.

(2)(a)(2) This section applies to any allegation:

Page(a) 2That an insurance company has not complied with the duty of 5good CODING:faith.

(b) Recognized in general law or common law.

(c) Filed by an insured or a third-party beneficiary to an Page 2 of 3 CODING:

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That an insurance company has not complied with the duty of good faith.

2.

Recognized in general law or common law.

3.

Filed by an insured or a third-party beneficiary to an insurance contract.

(b) This section provides the sole legal remedy for any allegation described in this subsection.

If the department Page 3 of 5 CODING:

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hb0751-00 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 HB 751 2019 determines the complaint meets the requirements of subsection (4), it shall refer the complaint to the Division of Administrative Hearings for a hearing, and the following procedures will apply:

(a) The department shall provide written notice to the insurer that the complaint is being referred to the Division of Administrative Hearings.

(b) Within 90 days after the Division of Administrative Hearings receives the complaint, an administrative law judge shall hold a hearing to determine if there has been a breach of duty and if there are any damages.

(c) Within 30 days after the date of the hearing, the administrative law judge shall enter an order, which must, at a minimum, include:

1.

Findings of fact, including a determination of whether the insurer violated the duty of good faith, and if so, a determination of the amount of damages.

2.

Conclusions of law.

3.

A statement of the right to appeal the order pursuant to subsection (6).

(d) In conducting the hearing under this subsection, the administrative law judge is not bound by technical or formal rules of procedure but may conduct the hearing in such manner as to best ascertain the rights of the parties.

(6) Either party may seek review of an order of an Page 4 of 5 CODING:

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words underlined are additions.

hb0751-00 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 HB 751 2019 administrative law judge entered pursuant to this section, which shall be by appeal to the First District Court of Appeal.