THE BILL ITSELF
SB 108
Resolution of Disputed Property Insurance Claims
Florida Senate - 2026 SB 108 By Senator Polsky 30-00313-26 2026108__
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A bill to be entitled
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An act relating to the resolution of disputed property
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insurance claims; amending s. 627.7015, F.S.;
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requiring, rather than authorizing, parties in a
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property insurance claim dispute to participate in
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mediation; providing that mediation is a condition
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precedent to commencing litigation; deleting
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provisions relating to the eligibility of claims for
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mediation; providing that the parties may mutually
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agree to conduct the mediation by teleconference or
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other electronic means; requiring all insureds, or
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their representatives, to attend the mediation;
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revising and specifying duties relating to the parties
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bearing certain costs of mediation; requiring, rather
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than authorizing, the Department of Financial Services
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to adopt certain rules; authorizing the department to
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adopt certain emergency rules; requiring the
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policyholder to provide the insurer with any
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information and certain documents within a specified
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timeframe after mediation is invoked; revising
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conditions under which a policyholder has a certain
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timeframe to rescind a settlement; revising the
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definition of the term “claim”; providing and revising
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construction; amending s. 627.7074, F.S.; conforming a
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provision to changes made by the act; providing an
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appropriation; providing effective dates.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 627.7015, Florida Statutes, is amended
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to read:
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627.7015 Mandatory mediation Alternative procedure for
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resolution of disputed property insurance claims.—
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(1) This section sets forth a nonadversarial alternative
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dispute resolution procedure for a mediated claim resolution
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conference prompted by the need for effective, fair, and timely
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handling of property insurance claims. There is a particular
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need for an informal, nonthreatening forum for helping parties
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who elect this procedure to resolve their claims disputes
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because most homeowner and commercial residential insurance
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policies obligate policyholders to participate in a potentially
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expensive and time-consuming adversarial appraisal process
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before litigation. The procedure set forth in this section is
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designed to bring the parties together for a mediated claims
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settlement conference without any of the trappings or drawbacks
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of an adversarial process. Before participating in resorting to
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these procedures, policyholders and insurers are encouraged to
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resolve claims as quickly and fairly as possible. This section
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applies is available with respect to claims under personal lines
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and commercial residential policies before commencing the
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appraisal process and is a condition precedent to , or before
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commencing litigation. Mediation may be requested only by the
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policyholder, as a first-party claimant, a third-party, as an
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assignee of the policy benefits, or the insurer. However, An
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insurer is not required to participate in any mediation
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requested by a third-party assignee of the policy benefits. If
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requested by the policyholder, Participation by legal counsel is
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permitted. Mediation under this section is also required of
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available to litigants referred to the department by a county
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court or circuit court. This section does not apply to
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commercial coverages, to private passenger motor vehicle
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insurance coverages, or to disputes relating to liability
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coverages in policies of property insurance.
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(2) At the time of issuance and renewal of a policy or at
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the time a first-party claim within the scope of this section is
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filed by the policyholder, the insurer shall notify the
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policyholder of its right to participate in the mandatory
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mediation program under this section. A claim becomes eligible
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for mediation after the insurer complies with s. 627.70131(7) or
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elects to reinspect pursuant to s. 627.70152(4)(a)3. If the
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insurer has not complied with s. 627.70131(7) or elected to
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reinspect pursuant to s. 627.70152(4)(a)3. within 90 days after
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notice of the loss, the insurer may not require mediation under
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this section. This subsection does not impair the right of an
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insurance company to request mediation after a determination of
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coverage pursuant to this section or require appraisal or
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another method of alternative dispute resolution pursuant to s.
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627.70152(4)(b). The department shall prepare a consumer
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information pamphlet for distribution to persons participating
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in mediation.
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(3) If the parties mutually agree, mediation may be
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conducted by teleconference or other electronic means in lieu of
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appearing in person. All named insureds, or their
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representatives, must attend the mediation, regardless of how it
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is conducted. The costs of mediation must be reasonable, and the
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insurer must bear all of the cost of conducting mediation
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conferences, except as otherwise provided in this section. If a
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named insured or his or her representative policyholder fails to
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appear at the conference, thus preventing the mediation from
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proceeding, the conference must be rescheduled upon the
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policyholder’s payment of the costs of a rescheduled conference.
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If the insurer fails to appear at the conference, the insurer
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must pay the policyholder’s actual cash expenses incurred in
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attending the conference if the insurer’s failure to attend was
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not due to a good cause acceptable to the department. An insurer
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is will be deemed to have failed to appear if the insurer’s
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representative lacks authority to settle the full value of the
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claim. The insurer shall incur an additional fee for a
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rescheduled conference necessitated by the insurer’s failure to
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appear at a scheduled conference. The fees assessed by the
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department must include a charge necessary to defray the
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expenses of the department related to its duties under this
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section and must be deposited in the Insurance Regulatory Trust
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Fund. The department may suspend the insurer’s authority to
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appoint licensees if the insurer does not timely pay the
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required fees. If a party elects to request an expert or a
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representative to attend the mediation, that party must bear any
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costs for the attendance of the expert or representative.
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(4) The department shall adopt by rule a property insurance
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mediation program to be administered by the department or its
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designee. The department shall may also adopt special rules that
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which are applicable in cases of an emergency within this the
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state , including emergency rules as necessary to establish
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physical addresses for the mediation program in areas affected
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by natural disasters . The rules shall be modeled after practices
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and procedures set forth in mediation rules of procedure adopted
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by the Supreme Court. The rules shall provide for all of the
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following :
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(a) Reasonable requirements requirement for processing and
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scheduling of requests for mediation.
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(b) Qualifications for persons who apply to be mediators ,
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grounds for denial of applications application , revocation of
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the department’s approval of mediators, and grounds for
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suspension , revocation of approval, and other penalties for
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mediators , as provided in s. 627.745 and the Florida Rules for
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Certified and Court-Appointed Mediators.
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(c) Provisions governing who may attend mediation
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conferences.
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(d) Selection of mediators.
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(e) Criteria for the conduct of mediation conferences.
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(f) Right to legal counsel.
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(5) (a) All statements made and documents produced at a
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mediation conference shall be deemed to be settlement
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negotiations in anticipation of litigation within the scope of
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s. 90.408. All parties to the mediation must negotiate in good
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faith and must have the authority to immediately settle the
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claim. Mediators are deemed to be agents of the department and
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shall have the immunity from suit provided in s. 44.107.
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(b) Within 10 days after mediation is invoked, the
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policyholder must provide to the insurer any information and
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supporting documents that serve as the basis for the claim.
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(6)(a) Mediation is nonbinding; however, if a written
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settlement is reached and the policyholder is not represented by
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an attorney or a public adjuster , the policyholder has 3
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business days within which the policyholder may rescind the
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settlement unless the policyholder has cashed or deposited any
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check or draft disbursed to the policyholder for the disputed
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matters as a result of the conference. If a settlement agreement
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is reached and is not rescinded, it is binding and acts as a
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release of all specific claims that were presented in that
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mediation conference.
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(b) At the conclusion of the mediation, the mediator shall
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provide a written report of the results of mediation, including
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any settlement amount, to the insurer, the policyholder, and the
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policyholder’s representative if the policyholder is represented
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at the mediation.
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(7) If the insurer fails to comply with subsection (2) by
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failing to notify a policyholder of its right to participate in
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the mandatory mediation program under this section or if the
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insurer requests the mediation, and the mediation results are
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rejected by either party, the policyholder is not required to
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submit to or participate in any contractual loss appraisal
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process of the property loss damage as a precondition to legal
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action for breach of contract against the insurer for its
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failure to pay the policyholder’s claims covered by the policy.
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(8) The department may designate an entity or person to
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serve as administrator to carry out any of the provisions of
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this section and may take this action by means of a written
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contract or agreement.
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(9) For purposes of this section, the term “claim” refers
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to any dispute between an insurer and a policyholder relating to
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a material issue of fact other than a dispute:
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(a) With respect to which the insurer has a reasonable
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basis to suspect fraud;
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(b) When the insurer has determined , based on agreed-upon
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facts as to the cause of loss, there is no coverage under the
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policy;
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(c) With respect to which the insurer has a reasonable
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basis to believe that the policyholder has intentionally made a
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material misrepresentation of fact which is relevant to the
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claim, and the entire request for payment of a loss has been
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denied on the basis of the material misrepresentation;
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(d) With respect to which the amount in controversy is less
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than $500, unless the parties agree to mediate a dispute
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involving a lesser amount; or
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(e) With respect to a loss that does not comply with s.
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627.70132.
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(10) Participation in mediation under this section before
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the policyholder’s filing of a notice under s. 627.70152 does
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not prohibit or waive an insurer’s right to invoke and
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participate in mediation under this section in response to the
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notice.
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Section 2. Subsection (3) of section 627.7074, Florida
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Statutes, is amended to read:
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627.7074 Alternative procedure for resolution of disputed
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sinkhole insurance claims.—
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(3) If there is coverage available under the policy and the
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claim was submitted within the timeframe provided in s.
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627.706(5), following the receipt of the report provided under
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s. 627.7073 or the denial of a claim for a sinkhole loss, the
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insurer shall notify the policyholder of his or her right to
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participate in the neutral evaluation program under this
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section. Neutral evaluation supersedes the mediation alternative
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dispute resolution process under s. 627.7015 but does not
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invalidate the appraisal clause of the insurance policy. The
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insurer shall provide to the policyholder the consumer
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information pamphlet prepared by the department pursuant to
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subsection (1) electronically or by United States mail.
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Section 3. Effective July 1, 2026, for the 2026-2027 fiscal
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year, the sum of $1 million in recurring funds is appropriated
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from the Insurance Regulatory Trust Fund to the Department of
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Financial Services for the purpose of administering the
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amendment made by this act to s. 627.7015, Florida Statutes.
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Section 4. Except as otherwise expressly provided in this
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act and except for this section, which shall take effect July 1,
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2026, this act shall take effect January 1, 2027.