Attorney Fees Awards One way attorney fee provisions related to property insurance claims have been eliminated meaning neither party is awarded prevailing party attorney fees and each party is responsible for payment of their own attorney fees. However, this is mitigated through the offer of judgment whereby if an offer is made and at trial the other side does not exceed at least 125% of such offer, then that could trigger the prevailing party to still have to pay the other side’s attorney fees. Assignment of Benefits No post loss insurance benefits under any residential property insurance policy or commercial property insurance policy issued on or after January 1, 2023, can be assigned to a third party. Therefore, assignment of benefits is no longer an option. Bad Faith Before a policyholder can sue a property insurance company for bad faith-based on how the insurance company settled the claim, the court of competent jurisdiction must first find that a breach of contract occurred. In addition, receiving an appraisal award higher than the insurance companies’ appraisers’ final estimate may be evidence of bad faith, but on its own does not give rise to a bad faith claim. Flood Insurance Citizens residential policyholders can be required to obtain flood insurance as a condition of having coverage from citizens. Emergency Response [Chapter 2023-1, SB 2-B, Effective February 15, 2023] Summary An act relating to emergency response. ● Created F.S. 288.066. Local Government Emergency Revolving Bridge Loan – Creation This program was created within the department to provide financial assistance to local governments impacted by federally declared disasters. The purpose of the loan program is to assist these local governments in maintaining government operations by bridging the gap between the time that the declared disaster occurred and the time additional funding sources or revenues are secured to provide them with financial assistance. Eligibility Requirements To be eligible for a loan under the program, a local government must be a county, or municipality located in an area designated in a FEMA disaster declaration. The local government must show that it may suffer or has suffered substantial loss of its tax or other revenues as a result of the disaster and demonstrate a need for financial assistance to enable it to continue to perform its governmental operations. Access to and eligibility for the loan program supersedes any local government charter or borrowing limitations that would otherwise financially constrain the local government’s ability to recover from a disaster. Loan Terms The department may provide interest-free loans to eligible local governments through a promissory note or other form of written agreement evidencing an obligation to repay the borrowed funds to the department. The amount of each loan must be based on demonstrated need. The term of the loan is up to 24 months. However, the department may extend loan terms for up to six months based on the local government’s financial condition. Application The department to prescribe a loan application and may request any other information determined necessary by the department to review and evaluate the application. The eligible local government must submit a loan application within 12 months after the date that the federal disaster was declared.
Considering that the state of Florida is primarily built on swampland, this makes sense. Mandatory Arbitration Insurance companies can now offer a policy with mandatory arbitration to settle disputes rather than litigation so long as the insurance company also offers a policy without a mandatory binding arbitration clause. If such binding arbitration is required, then a premium discount is required for such policy. F.S. 215.5552 Florida Optional Reinsurance Assistance program was created to read: ● Creation of the Florida Optional Reinsurance Assistance (FORA) program to be administered by the State Board of Administration. ● “FHCF” means the Florida Hurricane Catastrophe Fund created under F.S. 215.555. ● “Final FORA premium” means the premium due no later than March 1, 2024, paid by a FORA insurer after the actual 2023 FHCF premiums are calculated. ● “FORA eligible insurer” means an FHCF participating insurer as of November 30, New FHCF participants after that date are ineligible for FORA coverage. In addition, any joint underwriting association, risk apportionment plan, or other entity created under F.S. 627.351 is not considered a FORA insurer and may not obtain coverage under FORA. Upon receipt of an application, the department shall review the application and may request additional information as necessary to complete the review and evaluation. If the loan application is approved, the department shall determine the amount to be loaned, which may be a lower amount than requested, based on the information provided and the total amount of funds available to be loaned and in relation to demonstrated need from other eligible applicants. If the loan application is denied, reasons for the denial include, but are not limited to, the loan risk, an incomplete application, failure to demonstrate need, or the fact that receiving a loan may negatively affect the local government’s eligibility for other federal programs. Loan Repayment The local government may make payments against the loan at any time without penalty. Early repayment is encouraged as other funding sources or revenues become available to the local government. Loans become due and payable according to the terms of the agreement. Administration At the issuance of a federal disaster declaration, the department provides notice of application requirements and the total amount of funds available and makes loan information available to eligible local governments. The department must coordinate with the Division of Emergency Management or other applicable state agencies to assess whether such loans would affect reimbursement under federal programs for disaster-related expenses. All repayments of principal and interest must be returned to the loan fund and made available as provided in this section. Funds appropriated for this program are not subject to reversion. Rules The department may adopt rules to implement this section. Expiration of this Section Expires July 1, 2038. A loan may not be awarded after June 30, 2038. All unencumbered funds and loan repayments made on or after July 1, 2038, must be transferred to the General Revenue Fund.
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