Eleventh Circuit Upholds Strict Standard For Finding Insurance Bad Faith Behavior
Eleventh Circuit Upholds Strict Standard For Finding Insurance Bad Faith Behavior Apr 5, 2018 The U.S. Eleventh Circuit Court of Appeals (covering Florida) recently made a decision helpful to insurance companies fighting insurance bad faith claims. Specifically, the court held that no reasonable jury could find that an insurer’s failure to disclose information about additional insurance in its statutory insurance disclosure rose to the level of bad faith. Florida Law: Contents of Policies In this case, a driver struck a pedestrian, who was badly injured. When the driver’s insurer (Allstate) offered full policy limits to claimant, the claimant rejected the offer. Several months later, the claimant informed the insurer that they were willing to settle and requested that the insurer provide disclosure pursuant to Florida law, which lists what every insurance policy must specify. Specifically, every policy must specify: The names of those contracting; The subject of the insurance; The risks insured against; When the insurance takes effect and the period within which it is to continue; The premium; Any conditions pertaining to the insurance; and Form numbers and edition dates (or numeric code indicating edition dates). Florida common law also recognizes that insurers must exercise good faith in handling claims against their insureds. If an insurer is found to have acted in bad faith, it is liable for the entire judgement against the insured in favor of the injured third party, including any amounts necessary beyond the policy limits. However, in order for a claimant to prevail in a bad faith claim, the claimant must show a causal connection between the damages claimed and the insurer’s bad faith. The standard of care expected from an insurer in handling these claims against its insured is the “same degree of care and diligence as a person of ordinary care and prudence should exercise in the management of their own business.” The Decisions The claimant proceeded to once again reject the insurer’s offer, claiming that it had failed to satisfy the bare bones requirements of the law because it was missing a statement regarding additional insurance, and then sued the insurer for bad faith, alleging that the insurer failed to settle. The Florida state court (FL Statute §627.4137) found that no reasonable jury could find that the insurer acted in bad faith, and the Eleventh Circuit affirmed this decision on appeal. Although the court agreed that the insurer’s response was deficient, it found that this was a simple matter of negligence and could not rise to the level of bad faith, as the insurer’s attempts to settle, in general, were consistent, prompt, and reasonably diligent. Florida Insurance Bad Faith Attorneys HD Law Partners represents insurers who are being challenged as behaving in bad faith over coverage, damages, liability, or settlements. Contact our attorneys today to find out more—we serve clients in Fort Myers, Orlando, Sarasota, Tampa, and surrounding areas. Resource: leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.4137.html Tags: Florida Insurance Bad Faith Lawyer, Florida Insurance Bad Faith Lawyers, Insurance Bad Faith Litigation Posted in Homeowners Insurance, Hurricane Claims, Insurance Bad Faith | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us