This bill amends Florida Statutes to establish mandatory mediation for disputed property insurance claims, making it a prerequisite before any litigation can commence. The bill requires all parties involved in a property insurance claim dispute to participate in mediation, which can now be conducted via teleconference or other electronic means if mutually agreed upon. It also specifies that all insureds or their representatives must attend the mediation in person. The Department of Financial Services is mandated to adopt rules for the mediation program and can also implement emergency rules as necessary. Additionally, the bill revises the definition of "claim" and outlines the responsibilities of both insurers and policyholders regarding costs and documentation during the mediation process.

Furthermore, the bill includes provisions for the timely provision of information by policyholders to insurers following the invocation of mediation and establishes conditions under which a policyholder can rescind a settlement. It also clarifies that if an insurer fails to notify a policyholder of their right to participate in mediation, the policyholder is not required to engage in any appraisal process before pursuing legal action. The bill appropriates $1 million from the Insurance Regulatory Trust Fund for the Department of Financial Services to administer these changes, with an effective date set for January 1, 2026, and specific provisions taking effect on July 1, 2025.

Statutes affected:
S 224 Filed: 627.7015, 627.7074