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The 2025 Florida Statutes
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F.S. 627.7074627.7074 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; (c) The costs for stabilization and all repairs; and (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. (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. (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.”
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Annotations, Discussions, Cases:
Cases Citing Statute 627.7074
Total Results: 30
198 So. 3d 730, 2016 Fla. App. LEXIS 2412, 2016 WL 670189
District Court of Appeal of Florida | Filed: Feb 19, 2016 | Docket: 3037726
Cited 13 times | Published
the neutral evaluation process, described in section 627.7074, Florida Statutes (2010), the Homeowners declined
200 So. 3d 1207, 41 Fla. L. Weekly Supp. 415, 2016 Fla. LEXIS 2148, 2016 WL 5477795
Supreme Court of Florida | Filed: Sep 29, 2016 | Docket: 4448478
Cited 6 times | Published
also provide for a neutral evaluation procedure. § 627.7074, Fla. Stat. (2015). Neutral evaluation is mandatory
140 So. 3d 1023, 2014 WL 1921745, 2014 Fla. App. LEXIS 7160
District Court of Appeal of Florida | Filed: May 14, 2014 | Docket: 60241342
Cited 6 times | Published
evaluation” dispute resolution process in section 627.7074, Florida Statutes, to determine whether the
164 So. 3d 690, 2015 Fla. App. LEXIS 4390, 2015 WL 1380211
District Court of Appeal of Florida | Filed: Mar 27, 2015 | Docket: 60248023
Cited 3 times | Published
to all portions is possible”).
Pursuant to section 627.7074(12), when neutral evaluation is invoked the
136 So. 3d 670, 2014 WL 340670, 2014 Fla. App. LEXIS 1180
District Court of Appeal of Florida | Filed: Jan 31, 2014 | Docket: 60240056
Cited 3 times | Published
(“Department”) pursuant to section 627.7074(4), Florida Statutes (2012). Section 627.7074 is titled “Alternative
76 So. 3d 394, 2011 Fla. App. LEXIS 20827, 2011 WL 6934528
District Court of Appeal of Florida | Filed: Dec 30, 2011 | Docket: 60304521
Cited 3 times | Published
declaring that the mandatory stay provision of section 627.7074(11), Florida Statutes (2010), is unconstitutional
520 B.R. 136, 25 Fla. L. Weekly Fed. B 91, 2014 Bankr. LEXIS 4886, 2014 WL 6765482
United States Bankruptcy Court, M.D. Florida | Filed: Dec 2, 2014 | Docket: 65786875
Cited 2 times | Published
State Farm requested a neutral evaluation under § 627.7074 of the Florida Statutes, which “provides a substantive
100 So. 3d 85, 2012 Fla. App. LEXIS 10547, 2012 WL 2471601
District Court of Appeal of Florida | Filed: Jun 29, 2012 | Docket: 60226083
Cited 2 times | Published
nonfinal order from the circuit court ruling that section 627.7074, Florida Statutes (2010), is unconstitutional
95 So. 3d 891, 2012 WL 1448576, 2012 Fla. App. LEXIS 6612
District Court of Appeal of Florida | Filed: Apr 27, 2012 | Docket: 60311331
Cited 1 times | Published
participate in the neutral evaluation program under section 627.7074 and invited the public adjuster to contact
District Court of Appeal of Florida | Filed: Sep 30, 2020 | Docket: 18488448
Published
Florida Administrative Code and as authorized by section 627.7074, Florida
Statutes (2013). The evaluator held
269 So. 3d 653
District Court of Appeal of Florida | Filed: Apr 26, 2019 | Docket: 15005007
Published
evaluation
pursuant to section 627.7074, Florida Statutes (2014). See § 627.7074(10)
("Regardless
District Court of Appeal of Florida | Filed: Jan 15, 2018 | Docket: 6284250
Published
Department of
Financial Services pursuant to section 627.7074, Florida Statutes (2008), SDII amended
its
224 So. 3d 864, 2017 Fla. App. LEXIS 11691, 2017 WL 3495211, 42 Fla. L. Weekly Fed. D 1786
District Court of Appeal of Florida | Filed: Aug 16, 2017 | Docket: 6138716
Published
resolution created specifically for sinkhole cases. § 627.7074, Fla.
*866
Stat. (2010). It
194 So. 3d 1064, 2016 Fla. App. LEXIS 9693, 2016 WL 3450426
District Court of Appeal of Florida | Filed: Jun 24, 2016 | Docket: 3082299
Published
recommendations of the insurer’s professional, section 627.7074 provides an alternative method to resolve
191 So. 3d 526, 2016 Fla. App. LEXIS 7113, 2016 WL 2731195
District Court of Appeal of Florida | Filed: May 11, 2016 | Docket: 3063088
Published
and BLACK, JJ., Concur.
1
. Section 627.7074, Florida Statutes (2009), sets forth a process
194 So. 3d 411, 2016 Fla. App. LEXIS 5399, 2016 WL 1385629
District Court of Appeal of Florida | Filed: Apr 8, 2016 | Docket: 3052074
Published
invoked the neutral evaluation procedure under section 627.7074, Florida Statutes (2012), and litigation was
181 So. 3d 1211, 2015 Fla. App. LEXIS 18482, 2015 WL 8483944
District Court of Appeal of Florida | Filed: Dec 11, 2015 | Docket: 60252529
Published
statutorily-authorized neutral evaluation process. See § 627.7074, Fla. Stat. (2009). The neutral evaluator’s recommended
163 So. 3d 624, 2015 Fla. App. LEXIS 6026, 2015 WL 1874445
District Court of Appeal of Florida | Filed: Apr 24, 2015 | Docket: 2652166
Published
appraisal depends on the contract provisions.”); § 627.7074, Fla. Stat. (2009) (providing for nonbinding
173 So. 3d 986, 2015 Fla. App. LEXIS 1204, 2015 WL 403927
District Court of Appeal of Florida | Filed: Jan 30, 2015 | Docket: 2629744
Published
the neutral evaluation process pursuant to section 627.7074, Florida Statutes (2011). Shortly thereafter
154 So. 3d 1193, 2015 Fla. App. LEXIS 398, 2015 WL 159254
District Court of Appeal of Florida | Filed: Jan 14, 2015 | Docket: 2624301
Published
captioned “No Payment Owed” and “Violation of Section 627.7074(10), Florida Statutes, and ‘Suit Against Us’
161 So. 3d 565, 2014 Fla. App. LEXIS 17638, 2014 WL 5461969
District Court of Appeal of Florida | Filed: Oct 29, 2014 | Docket: 60247207
Published
participate in neutral evaluation pursuant to section 627.7074. That section provides, in pertinent part
207 So. 3d 245, 2014 Fla. App. LEXIS 13737
District Court of Appeal of Florida | Filed: Sep 5, 2014 | Docket: 63631302
Published
of disputed sinkhole claims is available. Id. § 627.7074. This procedure provides for “neutral evaluation”
161 So. 3d 463, 2014 WL 2619673, 2014 Fla. App. LEXIS 9109
District Court of Appeal of Florida | Filed: Jun 13, 2014 | Docket: 60247162
Published
objection to Citizen’s notice of stay pursuant to section 627.7074(10), Florida Statutes (2013), in the underlying
147 So. 3d 1019, 2014 Fla. App. LEXIS 8266, 2014 WL 2441802
District Court of Appeal of Florida | Filed: May 30, 2014 | Docket: 60243051
Published
neutral evaluation statute that is set forth in section 627.7074(10), Florida Statutes (2011), mandates an
161 So. 3d 424, 2014 WL 1051974, 2014 Fla. App. LEXIS 3970
District Court of Appeal of Florida | Filed: Mar 19, 2014 | Docket: 60247136
Published
request for an automatic stay pursuant to section 627.7074(10), Florida Statutes, in the breach of contract
160 So. 3d 1286, 2014 WL 340668, 2014 Fla. App. LEXIS 1196
District Court of Appeal of Florida | Filed: Jan 31, 2014 | Docket: 60246809
Published
completion of neutral evaluation pursuant to section 627.7074(10), Florida Statutes (2013).
NORTHCUTT and
981 F. Supp. 2d 1219, 2013 WL 5913515, 2013 U.S. Dist. LEXIS 156365
District Court, M.D. Florida | Filed: Oct 31, 2013 | Docket: 65995362
Published
the insured of the right to proceed under Section 627.7074 to a non-binding “neutral evaluation” before
100 So. 3d 90, 2012 Fla. App. LEXIS 11232, 2012 WL 2814124
District Court of Appeal of Florida | Filed: Jul 11, 2012 | Docket: 60226089
Published
circuit court’s non-final order ruling that section 627.7074, Florida Statutes (2010), is unconstitutional
829 F. Supp. 2d 1258, 2011 U.S. Dist. LEXIS 144255, 2011 WL 6287946
District Court, M.D. Florida | Filed: Dec 9, 2011 | Docket: 65977098
Published
pursuant to section 627.7074 of the Florida Statutes.
In accordance with section 627.7074, Defendant now
835 F. Supp. 2d 1227, 2011 WL 6099367, 2011 U.S. Dist. LEXIS 141258
District Court, M.D. Florida | Filed: Dec 7, 2011 | Docket: 65977908
Published
whether the pre or post amendment version of section 627.7074 would apply if either party elects to proceed
