What the statute does
Fla. Stat. 624.155 creates a cause of action against Florida insurers for bad-faith conduct: specifically, failure to settle in good faith, failure to pay when liability is reasonably clear, and other enumerated violations.
The Civil Remedy Notice (CRN)
Before a bad-faith lawsuit can be filed, the policyholder must file a Civil Remedy Notice with the DFS and the carrier. The CRN identifies the specific statutory violations alleged. The carrier then has 60 days to cure: pay the claim correctly, address the violation, make the policyholder whole.
If the carrier fails to cure within 60 days, the policyholder can proceed with a bad-faith action seeking the damages the insurer's conduct caused: often exceeding the policy limits.
What qualifies as bad faith
- Refusing to pay when liability is reasonably clear
- Failing to settle when possible and in the insured's best interest
- Missing statutory response deadlines without justification
- Misrepresenting material facts or policy provisions
- Acting as a material violation of the insurer's duty of good faith
Ocean Point's role
Ocean Point prepares CRNs under 624.155: this is one of our specialty services. We document the alleged violations, cite the statute, and file with DFS. When the carrier cures, the claim gets paid. When the carrier doesn't cure, we coordinate with policyholder counsel to pursue the bad-faith action.