In a recent case, the Florida Insurance Guaranty Association was held not to comply with the provisions of Florida Statute Section 627.7015 (2005), brought forward in all material respects as Fla. Stat. § 627.7015 (2009): Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009). As a result, FIGA was held to the sanctions imposed which, in that case, included that "FIGA cannot now demand the completion of the appraisal process as a precondition to litigation." Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009), attached Official Slipsheet Opinion at 7.
In its 2005 enactment which was at issue in the FIGA v. Devon Neighborhood Association case, and now, Section 627.7015 "establishes a mediation alternative for the handling of property insurance claims." Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009), at 2. "Upon receiving a claim, the insurer must notify the claimant of its [the claimant's] right to mediation." Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009), at 3.
In 2005, the Florida Legislature amended Section 627.7015 to extend "the mediation alternative to 'commercial residential insurance policies.' Included within the statutory definition for such policies is coverage provided by condominium associations for common elements. See § 627.4025, Fla. Stat. (2005) [brought forward as Fla. Stat. § 627.4025 (2009)]. The policy in this case constituted a commercial residential policy." Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009), at 3.
The Fourth District Court of Appeal distinguished case law relied on by FIGA as being "inapposite [because] they all deal with coverage of a loss." What the Fourth District Court of Appeal ruled next is extremely significant to future interpretations of statutorily required Mediation of Insurance Claims as clearly not applying to Mediation of Insurance Coverage disputes instead:
Here, no coverage issue is involved. Only the process of settling the claim is affected by the statute.
Download Florida Insurance Guaranty Ass'n v. Devon Neighborhood Ass'n (Fla. 4th DCA Opinion Filed December 2, 2009), at 7. [Emphasis added.]
PLAN TO ATTEND A SEMINAR ON "INSURANCE IN THE LAWSUIT (INCLUDING MEDIATION)" featuring Dennis Wall, sponsored by the Insurance Law Committee of the Orange County Bar Association in Orlando, Florida on Thursday, February 4, 2010.
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