HB 1439 — Resolution of Disputed Property Insurance Claims

Summary

Resolution of Disputed Property Insurance Claims; Requires, rather than authorizes, parties to property insurance claims dispute to participate in mediation; provides that mediation is condition precedent to commencing litigation; removes provisions relating to eligibility of claims for mediation; provides that parties may mutually agree to conduct mediation by teleconference or by telephone; requires all insureds, or representative thereof, to personally attend mediation; revises & specifying duties as to bearing certain costs of mediation; requires, rather than authorizing, DFS to adopt certain rules; emergency rules; requires policyholder to provide insurer with certain documents within certain timeframe after mediation is invoked; revises conditions under which policyholder has certain timeframe to rescind settlement. APPROPRIATION: $1,000,000

Bill Text

• Introduced H 1439 Filed Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill mandates mediation as a prerequisite for litigation in property insurance claims disputes.

• Section 627.7015

  is available with respect to claims under personal lines and commercial residential policies before commencing the appraisal process and is a condition precedent to, or before commencing litigation. → applies to claims under personal lines and commercial residential policies before commencing the appraisal process and is a condition precedent to commencing litigation.

  Clarifies that mediation is required before any litigation begins.

• Section 627.7015(2)

  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. → is required of available litigants referred to the department by a county court or circuit court.

  Changes the mediation request process to require participation instead of allowing optional request.

• Section 627.7015(3)

  Participation by legal counsel is permitted. → All named insureds, or a representative thereof, must personally attend the mediation, regardless of how it is conducted.

  Requires personal attendance at mediation by insured parties.

• Section 627.7015(3)

  An insurer is will be deemed to have failed to appear if the insurer's representative lacks authority to settle the full value of the claim. → An insurer will be deemed to have failed to appear if its representative is not authorized to settle the full value of the claim.

  Clarifies consequences for insurers who lack proper authority at mediation.

• Section 627.7015(5)(b)

  must provide to the insurer any supporting documents and information that serve as the basis for the claim. → Within 10 days after mediation is invoked, the policyholder must provide to the insurer any supporting documents and information that serve as the basis for the claim.

  Establishes a timeframe for policyholders to submit claim documents post-mediation invocation.

• Section 627.7015(6)(a)

  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. → the policyholder has 3 business days within which they may rescind the settlement unless they have cashed or deposited any check or draft disbursed for the disputed matters.

  Clarifies the rescission period for settlements reached in mediation.

• Section 627.7015(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, → if the insurer fails to notify a policyholder of their right to participate in the program under this section or if the insurer requests the mediation, and the mediation results are rejected by either party,

  Clarifies that the insurer's notification failure impacts policyholders' rights regarding appraisal processes.

• Section 627.7015(9)

  the term "claim" refers to any dispute between an insurer and a policyholder relating to a material issue of fact other than a dispute: → the term "claim" refers to any dispute between an insurer and a policyholder relating to a material issue of fact other than disputes regarding fraud or other specified exclusions.

  Clarifies the definition of 'claim' in the context of mediation and exclusions.

Action History

1. March 08, 2024

   Died in Insurance & Banking Subcommittee

2. January 13, 2024

   Now in Insurance & Banking Subcommittee

3. January 13, 2024

   Referred to Commerce Committee

4. January 13, 2024

   Referred to State Administration & Technology Appropriations Subcommittee

5. January 13, 2024

   Referred to Insurance & Banking Subcommittee

6. January 09, 2024

   1st Reading (Original Filed Version)

7. January 06, 2024

   Filed

Sponsors

• Waldron · Primary

Subjects