Proposed Fla. Legislation Limits Policyholder Rights
April 4, 2013, 8:32 PM EDT
Law360, New York (April 4, 2013, 8:32 PM EDT) -- During the current legislative session, Florida House Representative Kathleen Passidomo introduced HB 813, which as originally proposed significantly altered a policyholder’s right to obtain a “common law” remedy when a liability carrier acts in bad faith by not settling a claim within policy limits.
To satisfy its duty of good faith, an insurance carrier must: (1) advise its policyholder of settlement opportunities; (2) advise of the likely outcome of the litigation; (3) advise of the possibility of a judgment that would exceed the limits of the...