Mediation of Commercial Property Insurance Claims Rule To Take Effect August 30, 2009

Aug 28, 2009

A Florida Office of Insurance Regulation (“OIR”) Rule that implements a portion of Florida law mandating the creation of a property insurance claim resolution procedure as an alternate to “a potentially expensive and time-consuming adversarial appraisal process prior to litigation” will take effect on August 30, 2009. 

Rule 69J-166.002 relating to Mediation of Commercial Residential Property Insurance Claims is intended to create an “informal, nonthreatening forum for helping parties who elect this procedure to resolve their claims disputes.”

The statute and ensuing regulation were prompted by the “critical need for effective, fair, and timely handling of commercial residential property claims.”

 The program is available to all first-party claimants and their insurers prior to commencing the appraisal process or litigation.  It is also available to litigants referred to the OIR from Circuit or County court.  For claims that have not previously been mediated under any OIR mediation program, the mediation procedures described in this Rule are available for all Florida commercial residential property claims.

The Rule does not apply to commercial insurance, private passenger motor vehicle insurance, or to liability coverage contained in property insurance policies.  It also does not apply to policies issued under the National Flood Insurance Program established pursuant to the National Flood Insurance Act of 1968.

Personal lines residential insurance claims can be mediated pursuant to Rule 69J-166.031, F.A.C. , which is still in development.

To view the complete information on Rule 69J-166.002, click here.

 

Should you have any questions or comments, please contact Colodny Fass.

 

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