Pursuant to section 624.155(3)(a) of the Florida Statutes, an insured has a right to file a bad-faith cause of action if his or her carrier violates enumerated statutory provisions.1 Before filing such an action, however, the insured must meet three requirements:

1 There must be a determination of the insurer’s liability for coverage.

2 There must be a determination of the extent of the insured’s damages.

3 The insured must provide notice to the carrier by filing a Civil Remedy Notice (“CRN”) with Florida’s Department of Financial Services.2

Before the determination of liability and coverage, can an insured file a CRN?
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We keep stressing—and cannot stress enough—that effectively communicating an insurer’s bad faith conduct will help you go further in resolving insurance disputes. A great way to get a carrier’s attention is your ability to identify an insurer’s bad faith conduct, bring the conduct to the carrier’s attention, and explain why such conduct is prohibited. In this blog post, I’ll focus on what insurer conduct in California will demonstrate an insurer’s failure to conduct a thorough investigation. As a best practice, it is always good to let an insurer know the source prohibiting the alleged bad faith conduct. The source will always be either a statute, regulation, or case law. I have included applicable sources.
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Many insurance policies have a one-year suit limitation clause, which precludes the policyholder from suing for breach of contract after the one-year period has passed.1 In West Beach Condominium v. Commonwealth Insurance Company (“West Beach”),2 the Court of Appeals of Washington was asked whether under Washington Law an insurance policy one-year suit limitation clause barred extra-contractual claims under the Insurance Fair Conduct Act (“IFCA”)3 or Consumer Protection Act (“CPA”).4 The appellate court concluded the one-year suit applicable to breach of contract claims did not bar extra-contractual claims under IFCA or CPA.
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Effective communication with an insurance company is one of the best tools available to successfully resolve claims. I have heard time and time again from insurance adjusters and defense attorneys that poor communication is one of the chief reasons that claims are undervalued and low settlement values are assigned. I outline some basic tips for effective advocacy.
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Perhaps the most universally misunderstood aspect of insurance litigation in California is what the potential outcomes look like for the insured. Some policyholders fear the insurance company will tie them up in litigation for years and drain them emotionally, while others think a jury will swiftly award them tens of millions in punitive damages. The truth is somewhere in between. Insureds need their attorneys to help them understand the realistic outcomes. Insureds who misunderstand this early on will find themselves in trouble down the road when comes time to make the hard decisions.
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Nebraska’s Unfair Insurance Claims Settlement Practices Act, found at Neb. Rev. Stat. § 44-1535, et seq., does not allow for a private right of action. Under Neb. Rev. Stat. § 44-1537:

The purpose of the Unfair Insurance Claims Settlement Practices Act is to set forth standards for the investigation and disposition of claims arising under policies issued to residents of this state.


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Louisiana federal courts have been split on the issue regarding the applicable prescriptive period (statute of limitation) for first-party insureds’ bad faith claims against their insurers. Recently, the Louisiana Supreme Court granted review of Smith v. Citadel Insurance Company, to definitively rule on the primary legal issue presented: “the proper prescriptive period applicable to a first-party bad faith claim against an insurer.”1
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Policyholders who have delayed and underpaid insurance claims from Hurricane Michael may think about taking a page from the “how to file a complaint” playbook from an Old Mutual policyholder who sent the dead body to the claims department to collect on a funeral insurance policy.
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The United States District Court for the District of Minnesota in Selective Insurance Company of South Carolina v. Sela,1 recently addressed whether the implied covenant of good faith includes a broader obligation to act “reasonably” and “properly” in making a decision about whether to pay benefits. Sela had submitted a claim for hail damage to his home. Selective investigated the claim and filed suit alleging that Sela made fraudulent misrepresentations and was not entitled to coverage. Sela counterclaimed for breach of contract, breach of the implied covenant of good faith and fair dealing, and bad faith, pursuant to Minn. Stat. §604.18.
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In California, a carrier’s bad faith liability includes conduct beyond what is set out in the Insurance Code (statutory) and the Fair Claims Settlement Practices Act regulations. Bad faith conduct is also expressed through case law. Some of this additional bad faith conduct is summarized below. Effectively communicating an insurer’s bad faith conduct is essential to resolving insurance disputes. When you see bad faith conduct, a best practice is to bring the conduct to the carrier’s attention and explain why such conduct is prohibited.
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