A Required First Step Many Policyholders Never Learn About
Florida law requires a specific procedural step before a policyholder can sue their insurance company for bad faith, a requirement that catches many people off guard. Understanding this process matters for anyone in Miami dealing with an insurer that has denied, delayed, or underpaid a legitimate claim.
Many policyholders assume they can immediately file a lawsuit once an insurer acts unreasonably, only to discover Florida law requires this notice step be completed first, before litigation can proceed.
What Florida Statute 624.155 Requires
Under Florida Statute § 624.155, a policyholder must file a formal civil remedy notice with both the insurer and the Florida Department of Financial Services before filing a bad faith lawsuit, giving the insurer a window to address the violation. A Miami insurance and disability lawyer preparing this notice works to detail the exact statutory violations and factual basis required for the notice to be considered valid.
- A civil remedy notice must be filed before a bad faith lawsuit
- The insurer generally has 60 days to cure the violation
- The notice must cite statutory violations and facts
- An insurer that cures the violation within the window avoids liability
Why the Sixty-Day Cure Window Matters
Once a properly filed civil remedy notice reaches the insurer, Florida law generally gives that insurer sixty days to either pay the damages owed or otherwise correct the circumstances that gave rise to the violation. If the insurer successfully cures the problem within this window, the policyholder generally cannot pursue a statutory bad faith action based on that violation.
What Conduct Qualifies as Bad Faith
Bad faith generally involves an insurer failing to attempt in good faith to settle a claim when it reasonably could and should have done so, given all the surrounding circumstances of the case. A Miami insurance and disability lawyer evaluating a potential claim examines the insurer’s actual conduct throughout the process, not simply whether the claim was ultimately denied.
Why Documenting Every Interaction With the Insurer Helps
Keeping detailed records of every communication with an insurer, including dates, names, and what was said, can become valuable evidence if a bad faith claim later becomes necessary. This kind of documentation helps establish a clear timeline showing exactly how the insurer handled the claim from the very beginning.
Why the Civil Remedy Notice Must Include Specific Details
A valid notice must clearly identify the specific statutory provision the insurer allegedly violated, the actual facts and circumstances giving rise to that violation, and reference to relevant policy language where applicable. A notice lacking this required specificity can be returned, and the sixty-day clock does not begin running until a properly detailed notice is filed.
Why Long-Term Disability Denials Often Work Differently
Disability insurance claims often involve additional legal complexity, particularly when the policy is governed by ERISA, a federal law that generally applies to employer-sponsored disability plans and follows entirely different procedural rules than Florida’s own state bad faith statute. Determining whether a specific disability policy falls under ERISA or Florida state law matters for choosing the correct legal strategy from the very beginning.
Why Insurers Sometimes Deny Valid Claims Anyway
Insurers sometimes deny or delay legitimate claims because the cost of doing so, even accounting for potential bad faith exposure, remains lower than the cost of paying every single claim promptly and fully. Understanding this underlying financial incentive helps explain why the civil remedy notice and cure process exist as a meaningful check on this kind of conduct.
What Damages Are Available in a Bad Faith Case
A successful bad faith claim can result in damages beyond the original policy amount, including genuine consequential damages the policyholder suffered because of the insurer’s improper conduct, along with attorney fees and costs following an adverse judgment against the insurer.
Pursuing Insurance and Disability Claims in Miami
Needle & Ellenberg, P.A. represents Miami area policyholders facing denied or delayed insurance and disability claims, working through Florida’s required procedures to pursue full compensation owed under the policy.