Insurers & Coblentz Agreements In Florida
While there are frequently insurance disputes over coverage, damages, or liability – sometimes claims alleging insurance bad faith or plaintiffs seeking extra-contractual liability – there is no comprehensive definition of “good faith” in Florida; therefore, the full extent of what a “showing of good faith” means remains unresolved when it comes to liability insurers declining to cover the insured against whom a third party has asserted a claim. The Eleventh Circuit has perhaps provided the most comprehensive definition, in stating that “ Coblentz” agreements (settlement devices that can be used only when an insurer refuses to defend an insured) must be free from bad faith, collusion, and fraud, and entered with efforts to minimize liability. Still, those who defend insurers—and insurers themselves—are still left wondering what type of evidence specifically demonstrates that a Coblentz agreement should not be enforced for a lack of good faith. Examples: Lack of Good Faith Previously, Florida courts have found that there is a lack of good faith (in the form of collusion) and an absence of efforts to minimize liability in the following types of scenarios: Where the claim involved covered and non-covered damages, and the claimant failed to meet their burden of showing that only covered damages were allocated to the settlement; Where there was no exchange of information between the parties to the Coblentz agreement regarding the decedent’s work-life expectancy or the financial situation of the decedent; Where the insured failed to engage in even the most basic discovery; and/or Where the record was lacking in any evidence of how and when the insured negotiated for any reduction in a settlement proposal to minimize liability. Still, confusion remains as to what exact evidence is necessary to rise to the level of proving that a Coblentz agreement is unenforceable for lack of good faith. While the claimant carries the burden of proof to enforce the agreement, the extent of conduct that an insurer is required to show in its lack of good faith defense remains unclear. The trend tends to be that insurers have to bring their defenses before a jury instead of leaving the decision up to a judge, and they will be provided with broad latitude in obtaining the discovery they need to defend against the enforceability of a Coblentz agreement. Ultimately, a settlement may not be enforced against the insurance carrier if it is unreasonable in amount or tainted in bad faith. Florida Insurance Bad Faith Attorneys Insurance companies have a duty to their shareholders to operate efficiently and prudently. This involves working with experienced insurance bad faith attorneys to thoroughly investigate claims and diligently represent insurance carriers when good faith disputes arise. If you are an insurer involved in or potentially facing a bad faith insurance dispute, contact our insurance bad faith attorneys at HD Law Partners today to find out how we can help. Resources: insurancejournal.com/news/southeast/2018/05/17/489331.htm Tags: Florida Insurance Bad Faith Lawyer, Florida Insurance Bad Faith Lawyers, Insurance Bad Faith Litigation Posted in 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