Florida Statute 627.7015 | Lawyer Caselaw & Research

The 2024 Florida Statutes

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 Citing Statute 627.7015

Total Results: 20

Eli Wolf v. Exylena Williams

Court: District Court of Appeal of Florida | Date Filed: 2024-11-25

Snippet: specifically states that the amendments to section 627.7015 are to be effective July 1, 2005. See ch.2005–111

Universal Property & Casualty Insurance Corporation a/s/o Delores Senko v. Grove Isle at Vero Beach Condominium Association, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2024-02-28

Snippet: court concluded that the amendments to “section 627.7015 as amended in 2005 cannot be characterized as

JOHN SULZER AND JEANETTE ROBERTS SULZER v. AMERICAN INTEGRITY INSURANCE COMPANY OF FLORIDA

Court: District Court of Appeal of Florida | Date Filed: 2024-01-08

Snippet: retroactive effect of a modification to section 627.7015, Fla. Stat. (2005), which expanded the scope

REBECCA HUGHES v. UNIVERSAL PROPERTY & CASUALTY INSURANCE COMPANY

Court: District Court of Appeal of Florida | Date Filed: 2023-11-22

Snippet: statutory amendments to an insurance statute, section 627.7015, Florida Statutes. See id. at 190–91. The statute

ALAN GRNJA and DENISE GRNJA v. PEOPLE'S TRUST INSURANCE COMPANY

Court: District Court of Appeal of Florida | Date Filed: 2023-05-10

Snippet: to participate in mediation pursuant to section 627.7015, Florida Statutes (2021). We disagree and affirm

Kennedy v. First Protective Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 2019-03-06

Citation: 271 So. 3d 106

Snippet: their right to mediate, as mandated by Section 627.7015, Florida Statutes (2018). That notice

Bruce Fuller v. State

Court: District Court of Appeal of Florida | Date Filed: 2018-09-24

Citation: 257 So. 3d 521

Snippet: application of the substantive amendments to section 627.7015 applies in this case.” Id. Only after determining

State of Florida, Dept. of Financial Ser. v. Danahy & Murray, P.A., and Bennett Dennison, PLLC

Court: District Court of Appeal of Florida | Date Filed: 2018-04-20

Citation: 246 So. 3d 466

Snippet: of disputed sinkhole insurance claims. See §§ 627.7015 & 627.7074, Fla. Stat. (2016). To participate

State Farm Florida Insurance Company v. Lime Bay Condominium, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2016-03-23

Citation: 187 So. 3d 932, 2016 Fla. App. LEXIS 4529, 2016 WL 1128489

Snippet: of subsection 627.7015(2) 1 Florida Statutes (2012). Subsection 627.7015(7) provides that

State Farm Florida Insurance Company v. Lime Bay Condominium, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2015-11-18

Snippet: requirements of section 627.7015(2), Florida Statutes (2012). Section 627.7015(7) provides that the insured

Citizens Property Insurance Corp. v. Trapeo

Court: District Court of Appeal of Florida | Date Filed: 2014-01-31

Citation: 136 So. 3d 670, 2014 WL 340670, 2014 Fla. App. LEXIS 1180

Snippet: alternative dispute resolution process under s. 627.7015,” and is “mandatory if requested by either party

Subirats v. Fidelity National Property

Court: District Court of Appeal of Florida | Date Filed: 2013-02-20

Citation: 106 So. 3d 997, 2013 WL 616602, 2013 Fla. App. LEXIS 2620

Snippet: participate in mediation, pursuant to section 627.7015, Florida Statutes (2009). After completing their

First Protective Insurance Co. v. Schneider Family Partnership

Court: District Court of Appeal of Florida | Date Filed: 2012-11-14

Citation: 104 So. 3d 1115, 2012 WL 5499987, 2012 Fla. App. LEXIS 19701

Snippet: declaratory relief asserting that under section 627.7015(7), Florida Statutes (2005), and Florida Administrative

American Integrity Insurance Co. of Florida v. Gainey

Court: District Court of Appeal of Florida | Date Filed: 2012-09-28

Citation: 100 So. 3d 720, 2012 WL 4465519, 2012 Fla. App. LEXIS 16470

Snippet: the statutory notice of mediation under section 627.7015, Florida Statutes (2010). In January 2011, at

State Farm Florida Insurance v. Unlimited Restoration Specialists, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2012-03-23

Citation: 84 So. 3d 390, 2012 WL 966642, 2012 Fla. App. LEXIS 4589

Snippet: In the view of Unlimited Restoration, section 627.7015(7), Florida Statutes (2008), rendered the appraisal

Gassman v. State Farm Florida Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2011-11-02

Citation: 77 So. 3d 210, 2011 Fla. App. LEXIS 17370, 2011 WL 5170298

Snippet: failed to comply with the requirement in section 627.7015, Florida Statutes (2007), of notifying her of

Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n

Court: Supreme Court of Florida | Date Filed: 2011-06-30

Citation: 67 So. 3d 187, 36 Fla. L. Weekly Supp. 311, 2011 Fla. LEXIS 1526, 2011 WL 2566399

Snippet: Southern Family, by a 2005 amendment to section 627.7015, Florida Statutes, a provision of the Florida

UNIVERSAL PROPERTY AND CASUALTY INSURANCE COMPANY v. Colosimo

Court: District Court of Appeal of Florida | Date Filed: 2011-05-25

Citation: 61 So. 3d 1241, 2011 Fla. App. LEXIS 7575

Snippet: comply with section 627.7015, Florida Statutes (2009). We affirm. Section 627.7015 sets forth an alternative

Florida Insurance Guaranty v. Devon Neighborhood Ass'n

Court: District Court of Appeal of Florida | Date Filed: 2009-12-02

Citation: 33 So. 3d 48, 2009 Fla. App. LEXIS 18423

Snippet: lawsuit and also by failing to comply with section 627.7015, Florida Statutes. We hold that FIGA is precluded

Florida Insurance Guaranty Ass'n v. Shadow Wood Condominium Ass'n

Court: District Court of Appeal of Florida | Date Filed: 2009-12-02

Citation: 26 So. 3d 610, 2009 Fla. App. LEXIS 18422, 2009 WL 4283083

Snippet: comply with the notice requirement of section 627.7015(2), Florida Statutes (2005), so that the insured