Mediation of Property Insurance Claims Rulemaking Underway After State Farm Florida Water Damage Case
Feb 6, 2015
The Florida Office of Insurance Regulation (“OIR”) advised on February 2, 2015 that rulemaking is necessary to address an invalid portion of Rule 69O-166.031, F.A.C., “Mediation of Property Insurance Claims.”
The invalidation resulted from the ruling in State Farm Florida Ins. Co v Unlimited Restoration Specialists, Inc., 84 So. 3d 390 (Fla. 5th DCA 2012), a case relating to assignment of benefits in a residential water damage claim.
Further amendment to the Rule is proposed to eliminate redundant language contained in the Florida Department of Financial Services (“DFS”) Rule governing the mediation program (“program”) prescribed by Section 627.7015, F.S. regarding the mediation of residential and commercial property insurance claims.
The DFS administers the program and through Rule 69J-166.031, F.A.C., which is comprehensive.
At one point, OIR Rule 69O-166.031, F.A.C. was identical to its DFS counterpart. Over time, the DFS version has been amended and is not identical to that of the OIR, which is described as redundant and unnecessary. Therefore, the proposed Rule is being amended to cross-reference the DFS Rule and maintain the penalty for an insurer’s failure to appear at a mediation conference.
If requested in writing and not deemed unnecessary by the OIR, a Rule Development Workshop will be held on Tuesday, February 24, 2015 at 9:30 a.m. in Tallahassee.
To view the Notice of Rule Development, click here.
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