A number of Florida insurance companies removed appraisal from their policies over the past several years. Since litigation was the only method of resolution, this lead in part to a sharp increase in lawsuits filed. This “Wag The Dog” scenario then allowed the Florida insurance industry to claim a spike increase in the number of lawsuits filed and seek a need for alleged reform which harms Florida policyholders.

In my Tuesday at 2 discussion yesterday, a question was raised about what appraisal process is to be filed when SB 76 has this language:

If an insurer is responding to a notice provided to the insurer alleging an act or omission by the insurer other than a denial of coverage, the must respond by making a settlement offer or requiring the claimant to participate in appraisal or another method of alternative dispute resolution.

Unlike an arbitration process where there is a statue describing how the process works, there is nothing in Florida law to dictate how an appraisal would be conducted pursuant to statute. There is nothing in SB 76 describing what an appraisal process would be if the insurer required the policyholder to proceed to such a procedure if not found in the policy. The alternative dispute resolution is not defined as well. What happens if the insurer selects a “flip of the coin?”

Again, you will not find this craziness in any other state.

Thought For The Day

The truth is you don’t know what is going to happen tomorrow. Life is a crazy ride, and nothing is guaranteed.