The bill amends Florida Statutes to establish mandatory mediation for disputed property insurance claims, making it a prerequisite before any litigation can commence. It 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. The bill also mandates that all insureds or their representatives must attend the mediation in person, and it specifies the responsibilities regarding the costs associated with mediation. Additionally, the Department of Financial Services is required to adopt rules for the mediation program and is authorized to implement emergency rules as necessary.

Furthermore, the bill revises the definition of "claim" and outlines the conditions under which a policyholder can rescind a settlement reached during mediation. It stipulates that if a settlement is reached and the policyholder is not represented by an attorney or public adjuster, they have three business days to rescind the agreement. The bill also includes provisions for the insurer's obligations in notifying policyholders about their right to mediation and the consequences of failing to comply with these requirements. An appropriation of $1 million is allocated for the administration of these changes, which will take effect on July 1, 2025, with the rest of the act effective January 1, 2026.

Statutes affected:
H 459 Filed: 627.7015, 627.7074