THE BILL ITSELF
HB 1269
Awards of Attorney Fees in Insurance Claims
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A bill to be entitled
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An act relating to awards of attorney fees in
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insurance claims; amending s. 86.121, F.S.; revising
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procedures for awards of attorney fees in legal
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proceedings for declaratory reliefs to determine
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insurance coverage; creating s. 626.9375, F.S.;
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providing guidelines for awards of attorney fees in
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civil claims for damages against surplus lines
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insurers; defining the term "judgment"; creating s.
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627.4275, F.S.; providing guidelines for awards of
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attorney fees in civil claims for damages against
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insurers; defining the term "judgment"; amending ss.
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624.123, 624.488, 627.062, 627.401, 627.727, 627.736,
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and 628.6016, F.S.; providing applicability; creating
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ss. 631.696 and 631.9245, F.S.; providing
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applicability; amending s. 632.638, F.S.; providing
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applicability; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 86.121, Florida Statutes, is amended to
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read:
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86.121 Attorney fees; claims actions for declaratory
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relief to determine insurance coverage after total coverage
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denial of claim.—
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(1) In a claim an action brought for declaratory relief in
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state or federal court to determine insurance coverage after the
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insurer denied coverage or reserved its right to deny coverage
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in the future, has made a total coverage denial of a claim:
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(a) Either party is entitled to the summary procedure
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provided in s. 51.011, and the court shall advance the cause on
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the calendar.
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(b) the court shall award reasonable attorney fees to the
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named insured, omnibus insured, or third-party named beneficiary
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under a policy issued by the insurer upon rendition of a
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declaratory judgment in favor of the named insured, omnibus
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insured, or third-party named beneficiary, or upon the insurer's
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voluntary dismissal of the claim with or without prejudice. This
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right may not be transferred to, assigned to, or acquired in any
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other manner by anyone other than a named or omnibus insured or
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a third-party named beneficiary. A defense offered by an insurer
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pursuant to a reservation of rights does not constitute a
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coverage denial of a claim. Such fees are limited to those
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incurred in the claim action brought under this chapter for
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declaratory relief to determine coverage of insurance issued
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under the Florida Insurance Code.
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(2) This section does not apply to any action arising
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under a residential or commercial property insurance policy.
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Section 2. Section 626.9375, Florida Statutes, is created
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to read:
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626.9375 Attorney fees.—
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(1) In any civil claim for damages against a surplus lines
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insurer by a named or omnibus insured or a named beneficiary
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under an insurance policy or contract executed by the insurer,
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the trial court or, in the event of an appeal, the appellate
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court shall award reasonable attorney fees to the prevailing
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party. For purposes of this subsection:
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(a) The insured or named beneficiary is the prevailing
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party:
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1. If such person obtains a judgment greater than the
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highest written settlement offer previously made by the insurer
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to such person;
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2. If such person obtains a judgment against the insurer
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when the insurer previously makes no written settlement offer to
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such person; or
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3. If the insurer makes a payment to such person after the
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civil claim is filed but before a final judgment is obtained.
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(b) If the insured or named beneficiary obtains a judgment
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against the insurer for an amount greater than the highest
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written settlement offer made by the insurer before the suit is
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filed but less than the highest written settlement offer made by
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the insurer after the suit is filed, the insured or named
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beneficiary is the prevailing party for the period until the
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insurer makes the first written settlement offer that is greater
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than the judgment.
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(c) The insurer is the prevailing party if the insured or
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named beneficiary is not the prevailing party.
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(d) As used in this subsection, the term "judgment"
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includes the total amount of the damages, the prejudgment
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interest on unpaid benefits, and any reasonable attorney fees
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and costs incurred by the insured or named beneficiary.
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Notwithstanding any agreement between the attorney and the
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insured or named beneficiary, attorney fees are deemed incurred
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by the insured or named beneficiary when the attorney reasonably
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expends time on the claim after it is filed.
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(e) Any offer made by the insurer is not considered a
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written settlement offer if the offer:
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1. Is not kept open for at least 5 business days;
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2. Is made later than 45 days before the date set for
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trial or the first day of the docket on which the case is set
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for trial, whichever is earlier; or
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3. Contains nonmonetary terms, other than a voluntary
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dismissal of the claim with prejudice if the offer is made after
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the suit is filed or a covenant not to sue if the offer is made
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before the suit is filed.
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(2) When awarded, attorney fees must be included in the
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judgment or decree rendered in the case.
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Section 3. Section 627.4275, Florida Statutes, is created
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to read:
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627.4275 Attorney fees.—
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(1) In any civil claim for damages against an insurer by a
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named or omnibus insured or a named beneficiary under an
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insurance policy or contract executed by the insurer, the trial
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court or, in the event of an appeal, the appellate court shall
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award reasonable attorney fees to the prevailing party. For
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purposes of this subsection:
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(a) The insured or named beneficiary is the prevailing
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party if:
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1. Such person obtains a judgment greater than the highest
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written settlement offer previously made by the insurer to such
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person;
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2. Such person obtains a judgment against the insurer when
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the insurer previously makes no written settlement offer to such
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person; or
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3. The insurer makes a payment to such person after the
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civil claim is filed but before a final judgment is obtained.
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(b) If the insured or named beneficiary obtains a judgment
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against the insurer for an amount greater than the highest
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written settlement offer made by the insurer before the suit is
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filed but less than the highest written settlement offer made by
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the insurer after the suit is filed, the insured or named
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beneficiary is the prevailing party for the period until the
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insurer makes the first written settlement offer that is greater
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than the judgment.
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(c) The insurer is the prevailing party if the insured or
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named beneficiary is not the prevailing party.
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(d) As used in this subsection, the term "judgment"
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includes the total amount of the damages, the prejudgment
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interest on unpaid benefits, and any reasonable attorney fees
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and costs incurred by the insured or named beneficiary.
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Notwithstanding any agreement between the attorney and the
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insured or named beneficiary, attorney fees are deemed incurred
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by the insured or named beneficiary when the attorney reasonably
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expends time on the claim after it is filed.
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(e) Any offer made by the insurer is not considered a
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written settlement offer if the offer:
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1. Is not kept open for at least 5 business days;
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2. Is made later than 45 days before the date set for
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trial or the first day of the docket on which the case is set
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for trial, whichever is earlier; or
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3. Contains nonmonetary terms, other than a voluntary
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dismissal of the claim with prejudice if the offer is made after
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the suit is filed or a covenant not to sue if the offer is made
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before the suit is filed.
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(2) When awarded, attorney fees must be included in the
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judgment or decree rendered in the case.
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Section 4. Subsection (4) of section 624.123, Florida
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Statutes, is amended to read:
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624.123 Certain international health insurance policies;
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exemption from code.—
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(4) Any international health insurance policy or
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application solicited, provided, entered into, issued, or
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delivered pursuant to this subsection is exempt from all
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provisions of the insurance code, except that such policy,
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contract, or agreement is subject to the provisions of ss.
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624.155, 624.316, 624.3161, 626.951, 626.9511, 626.9521,
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626.9541, 626.9551, 626.9561, 626.9571, 626.9581, 626.9591,
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626.9601, 627.413, 627.4145, 627.4275, and 627.6043.
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Section 5. Subsection (4) of section 624.488, Florida
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Statutes, is amended to read:
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624.488 Applicability of related laws.—In addition to
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other provisions of the code cited in ss. 624.460-624.488:
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(4) Sections 627.291, 627.413, 627.4132, 627.416, 627.418,
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627.420, 627.421, 627.425, 627.426, 627.4265, 627.427, 627.4275,
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627.702, and 627.706; part XI of chapter 627; ss. 627.912,
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627.913, and 627.918;
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apply to self-insurance funds. Only those sections of the code
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that are expressly and specifically cited in ss. 624.460-624.489
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apply to self-insurance funds.
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Section 6. Paragraph (b) of subsection (3) of section
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627.062, Florida Statutes, is amended to read:
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627.062 Rate standards.—
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(3)
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(b) Individual risk rates and modifications to existing
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approved forms are not subject to this part or part II, except
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for paragraph (a) and ss. 627.402, 627.403, 627.4035, 627.404,
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627.405, 627.406, 627.407, 627.4085, 627.409, 627.4132,
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627.4133, 627.415, 627.416, 627.417, 627.419, 627.425, 627.426,
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627.4265, and 627.427, 627.4275, but are subject to all other
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applicable provisions of this code and rules adopted thereunder.
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Section 7. Subsections (3), (4), and (5) of section
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627.401, Florida Statutes, are amended to read:
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627.401 Scope of this part.—No provision of this part of
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this chapter applies to:
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(3) Wet marine and transportation insurance, except ss.
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627.409, and 627.420, and 627.4275.
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(4) Title insurance, except ss. 627.406, 627.415, 627.416,
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627.419, and 627.427, and 627.4275.
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(5) Credit life or credit disability insurance, except ss.
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627.419(5) and 627.4275 s. 627.419(5).
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Section 8. Subsections (8) and (9) of section 627.727,
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Florida Statutes, are renumbered as subsections (9) and (10),
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respectively, and subsection (8) is added to that section, to
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read:
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627.727 Motor vehicle insurance; uninsured and
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underinsured vehicle coverage; insolvent insurer protection.—
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(8) If a dispute arises in an action under this section
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regarding whether a policy provides uninsured motorist coverage
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or the amount of coverage available under the policy, attorney
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fees may be recovered under s. 86.121. Sections 626.9375 and
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627.4275 do not apply to any action brought under this section
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against the uninsured motorist insurer.
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Section 9. Subsection (8) of section 627.736, Florida Statutes, is amended to read:
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627.736 Required personal injury protection benefits;
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exclusions; priority; claims.—
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(8) APPLICABILITY OF PROVISION REGULATING ATTORNEY FEES.—
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With respect to any dispute under the provisions of ss. 627.730-
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627.7405 between the insured and the insurer, or between an
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assignee of an insured's rights and the insurer, ss. 627.4275
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and 768.79 the provisions of s. 768.79 apply, except as provided
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in subsections (10) and (15), and except that any attorney fees
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recovered must:
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(a) Comply with prevailing professional standards;
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(b) Not overstate or inflate the number of hours
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reasonably necessary for a case of comparable skill or
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complexity; and
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(c) Represent legal services that are reasonable and
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necessary to achieve the result obtained.
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Upon request by either party, a judge must make written
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findings, substantiated by evidence presented at trial or any
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hearings associated therewith, that any award of attorney fees
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complies with this subsection. Attorney fees recovered under ss.
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627.730-627.7405 must be calculated without regard to a
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contingency risk multiplier.
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Section 10. Subsection (4) of section 628.6016, Florida
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Statutes, is amended to read:
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628.6016 Applicability of related laws.—In addition to
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other provisions of the code cited in ss. 628.6011-628.6018:
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(4) Sections 627.291, 627.413, 627.4132, 627.416, 627.418,
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627.420, 627.421, 627.425-627.427, 627.4275, 627.702, and
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627.706; part XI of chapter 627; ss. 627.912, 627.913, and
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627.918; and
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apply to assessable mutual insurers; however, ss. 628.255,
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628.411, and 628.421 do not apply. No section of the code not
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expressly and specifically cited in ss. 628.6011-628.6018
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applies to assessable mutual insurers. The term "assessable
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mutual insurer" shall be substituted for the term "commercial
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self-insurer" as appropriate.
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Section 11. Section 631.696, Florida Statutes, is created
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to read:
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631.696 Attorney fees.—Section 627.4275 does not apply to
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any claim presented to the association under this part, unless
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the association denies, by affirmative action other than delay,
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a covered claim or a portion thereof.
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Section 12. Section 631.9245, Florida Statutes, is created
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to read:
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631.9245 Attorney fees.—Section 627.4275 does not apply to
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any claim presented to the corporation under this part, unless
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the corporation denies, by affirmative action other than delay,
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a covered claim or a portion thereof. Section 13. Subsections (11), (12), and (13) of section
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632.638, Florida Statutes, are renumbered as subsections (12),
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(13), and (14), respectively, and a new subsection (11) is added
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to that section, to read:
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632.638 Applicability of other code provisions.—In
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addition to other provisions contained or referred to in this
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chapter, the following chapters and provisions of this code
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apply to fraternal benefit societies, to the extent applicable
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and not in conflict with the express provisions of this chapter
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and the reasonable implications thereof:
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(11) Section 627.4275;
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Section 14. This act applies to any claim or lawsuit
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arising out of an insurance policy or contract issued on or
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after July 1, 2026.
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Section 15. This act shall take effect July 1, 2026.