South Florida Personal Injury Lawyers Blog
Florida law allows policyholders to pursue bad faith claims against the insurer when an insurance company refuses to honor its policy obligations. However, before filing such a lawsuit, the policyholder must submit a Civil Remedy Notice (CRN) outlining the alleged violations and allowing the insurer to correct its conduct. A recent appellate decision overturned a lower court’s ruling that dismissed a bad faith lawsuit against Travelers Home and Marine Insurance Company, finding that the insurer had waived any objections to the adequacy of the CRN.
Florida Court Reverses Dismissal of Bad Faith Claim
A Florida driver sustained injuries in a 2011 rear-end collision caused by another motorist with a $10,000 insurance policy through GEICO. The driver had underinsured motorist (UM) coverage with Travelers and sought additional compensation under that policy. Travelers refused to provide benefits, prompting the insured to file a CRN in 2012, a necessary step in pursuing a bad faith claim under Florida Statutes § 624.155.
Under Florida law, a policyholder must submit a detailed CRN to both the insurance company and the Department of Insurance before filing a bad faith lawsuit. The insurer then has 60 days to correct the issue or pay the claim, thereby avoiding litigation. After Travelers did not resolve the dispute, the insured filed suit in 2013, leading to years of litigation over the insurer’s handling of the claim.
In 2021, nearly a decade after receiving the CRN, Travelers attempted to dismiss the bad faith lawsuit, arguing for the first time that the notice lacked sufficient specificity. The circuit court agreed, granting summary judgment in favor of Travelers. However, on appeal, the Second District Court of Appeal of Florida ruled that the insurer had waived its objections by failing to raise them within a reasonable timeframe. The decision overturned the lower court’s ruling, allowing the bad faith claim to proceed.
Legal Implications for Florida Insurance Disputes
This case reinforces the importance of timely objections in Florida bad faith insurance disputes. If an insurer believes a CRN is deficient, it must raise that issue immediately rather than waiting years before challenging the claim. By failing to object in a timely manner, the insurance company waived its right to challenge the notice’s specificity.
The appellate court also criticized the circuit court’s reliance on trial court decisions as legal precedent, emphasizing that only appellate decisions are binding. The court clarified that earlier cases from Florida’s Fourth District Court of Appeal supported the insured’s position, further strengthening the argument that the lower court’s ruling should be overturned.
How This Ruling Affects Policyholders in Florida
This ruling highlights several key takeaways for Florida residents dealing with insurance disputes. Bad faith claims remain a powerful tool for holding insurance companies accountable when they fail to uphold policy agreements. However, policyholders must ensure that their CRNs meet statutory requirements before filing suit.
At the same time, insurance companies cannot wait years before objecting to a CRN’s validity. If an insurer fails to respond to a claim in good faith within the required 60-day window, it risks losing its ability to challenge the notice later.
Protect Your Rights with an Experienced Miami Insurance Attorney
If an insurance company wrongfully denies or delays payment, you may have grounds for a bad faith insurance claim. Friedman Rodman Frank & Estrada, P.A. has represented policyholders across South Florida since 1976, fighting to hold insurers accountable for unfair claim denials. Contact the firm today to discuss your case and explore your legal options.