Time-Limited Demand and Bad Faith Toolkit - Florida

TIME-LIMITED DEMAND AND BAD FAITH TOOLKIT - FLORIDA

JURISDICTION NOTE: Florida has one of the most complex bad faith frameworks in the country, made more so by HB 837 (2023 Tort Reform). Florida recognizes both statutory bad faith under Fla. Stat. section 624.155 and common law bad faith. A CRITICAL pre-suit requirement exists: for statutory bad faith, the policyholder MUST file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and provide the insurer a 60-day cure period before filing suit. For third-party bad faith, Florida law generally requires an excess judgment as a prerequisite. Under HB 837, insurers now have a 90-day safe harbor to tender policy limits after notice of a claim with sufficient evidence, and mere negligence alone is insufficient to establish bad faith.

TABLE OF CONTENTS

1. Third-Party Time-Limited Settlement Demand Letter
2. First-Party Bad Faith Demand Letter and Civil Remedy Notice Guide
3. Florida Bad Faith Elements Checklist
4. Damages Calculation Framework
5. Bad Faith Conduct Documentation Checklist
6. Pre-Suit Requirements -- Civil Remedy Notice (CRN)
7. Florida-Specific Practice Notes
8. Sample Time-Limited Demand Conditions
9. Sources and References

1. THIRD-PARTY TIME-LIMITED SETTLEMENT DEMAND LETTER

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [____________________________________]

Date: [__/__/____]

To:
[________________________________] (Claims Adjuster)
[________________________________] (Insurance Company)
[________________________________] (Address)
[________________________________] (City, State, ZIP)

Re: Time-Limited Settlement Demand
Claimant: [________________________________]
Insured/Tortfeasor: [________________________________]
Claim Number: [________________________________]
Policy Number: [________________________________]
Date of Loss: [__/__/____]
Policy Limits: $[________________________________] per occurrence / $[________________________________] aggregate

Dear Claims Professional:

This firm represents [________________________________] ("Claimant") for injuries and damages arising from [________________________________] [describe incident] that occurred on [__/__/____] in [________________________________] County, Florida, involving your insured, [________________________________] ("Insured").

A. LIABILITY SUMMARY

Liability against your Insured is clear and supported by the following:

[________________________________]
[________________________________]
[________________________________]

[Insert specific facts. Florida follows modified comparative negligence under Fla. Stat. section 768.81 (as amended by HB 837, effective March 24, 2023). A claimant whose fault exceeds 50% is barred from recovery in negligence actions (medical malpractice actions are exempt from this bar). For causes of action accruing before March 24, 2023, the prior pure comparative negligence rule applies. Address the insured's substantial fault and claimant's minimal or zero fault.]

Supporting documentation is attached as Exhibit A.

B. DAMAGES SUMMARY

Notice of Sufficient Evidence: This letter and supporting documentation constitute "actual notice of a claim which is accompanied by sufficient evidence to support the amount of the claim" for purposes of the 90-day safe harbor under Fla. Stat. section 624.155(3)(f) (as amended by HB 837).

Supporting documentation is attached as Exhibit B.

C. COVERAGE

The applicable policy provides bodily injury liability coverage with limits of $[________________] per occurrence. No known exclusions or coverage defenses apply.

D. DEMAND

Claimant demands payment of $[________________] (the full per-occurrence policy limits) to settle all claims against the Insured.

E. TIME LIMIT

This demand expires at 5:00 p.m. Eastern Time on [__/__/____], which is [____] days from the date of this letter. Time is of the essence.

HB 837 Safe Harbor Note: Notwithstanding the time limit set forth in this demand, this letter constitutes notice triggering the 90-day safe harbor period under Fla. Stat. section 624.155(3)(f). If the insurer tenders the lesser of the policy limits or the demanded amount within 90 days of this notice, no statutory or common law bad faith action shall arise from this claim. However, the Claimant retains the right to pursue the underlying tort claim regardless.

F. CONDITIONS FOR ACCEPTANCE

1. Written acceptance delivered to the undersigned by the deadline.
2. Payment of the full demanded amount within [____] business days of acceptance.
3. Release of the Insured only -- standard release, no confidentiality, no indemnification, no release of the insurer from independent claims by the Insured.
4. No additional conditions. Any variation constitutes a counteroffer and rejection.

G. NOTICE OF EXCESS LIABILITY EXPOSURE UNDER FLORIDA LAW

Under Florida law, an insurer has an affirmative duty to act in good faith in handling third-party claims. Where liability is clear and injuries are so serious that a judgment in excess of policy limits is likely, the insurer has an affirmative duty to initiate settlement negotiations, even without a formal demand. Powell v. Prudential Property & Cas. Ins. Co., 584 So.2d 12 (Fla. 3d DCA 1991).

Under Berges v. Infinity Ins. Co., 896 So.2d 665 (Fla. 2004), "the focus in a bad faith case is not on the actions of the claimant but rather on those of the insurer in failing its obligations to the insured." The insurer is evaluated on the "totality of the circumstances" surrounding its claims handling.

Failure to accept this demand may expose the insurer to:

• The full excess judgment (Fla. Stat. section 624.155(1))
• Compensatory damages that are a reasonably foreseeable result of the bad faith
• Statutory interest and attorney fees
• Punitive damages in egregious cases

We urge you to immediately notify the Insured of this demand.

H. DOCUMENTATION ENCLOSED

☐ Exhibit A: Liability Evidence Package
☐ Exhibit B: Damages Package (medical records, bills, wage verification)
☐ Exhibit C: Photographs / Video Evidence
☐ Exhibit D: Expert Reports (if applicable)

Respectfully submitted,

________________________________________
[________________________________] (Attorney Name, Firm, Address, Phone, Email, Bar No.)

Counsel for [________________________________], Claimant

2. FIRST-PARTY BAD FAITH DEMAND LETTER AND CIVIL REMEDY NOTICE GUIDE

A. PRE-CRN DEMAND LETTER

[Send this letter BEFORE filing the Civil Remedy Notice. It establishes the record and gives the insurer notice of the insured's position.]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [____________________________________]

Date: [__/__/____]

To:
[________________________________] (Claims Manager / General Counsel)
[________________________________] (Insurance Company)
[________________________________] (Address)
[________________________________] (City, State, ZIP)

Re: Demand for Payment and Notice of Intent to File Civil Remedy Notice
Insured/Policyholder: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]

Dear [________________________________]:

This firm represents [________________________________] ("Insured") regarding the above-referenced claim under [________________________________] Policy No. [________________________________].

Claim History

On [__/__/____], the Insured suffered a covered loss consisting of [________________________________]. The claim was timely reported on [__/__/____]. The Insured has cooperated fully with all investigation requirements.

Company's Improper Conduct

☐ Denied the claim without reasonable basis on [__/__/____]
☐ Unreasonably delayed investigation or payment for [____] days
☐ Underpaid: offered $[________________] when the covered loss is $[________________]
☐ Failed to conduct a good faith investigation
☐ Misrepresented policy provisions
☐ Violated Fla. Stat. section 626.9541(1)(i) (Unfair Claim Settlement Practices)
☐ Other: [________________________________]

Demand

The Insured demands immediate payment of $[________________] in covered benefits.

Notice of Intent to File Civil Remedy Notice

If the Company fails to resolve this claim within [____] days, the Insured will file a Civil Remedy Notice pursuant to Fla. Stat. section 624.155(3)(a) with the Florida Department of Financial Services. Upon filing of the CRN, the Company will have 60 days to cure the violation before the Insured may commence a bad faith action.

Respectfully submitted,

________________________________________
[________________________________] (Attorney Name, Firm, Address, Phone, Email, Bar No.)

B. CIVIL REMEDY NOTICE (CRN) -- FILING GUIDE

CRITICAL: The CRN is a MANDATORY prerequisite to filing a statutory bad faith action under Fla. Stat. section 624.155. Failure to properly file the CRN will result in dismissal of the bad faith claim.

Step-by-Step CRN Filing Process:

Step 1: Obtain the official CRN form from the Florida Department of Financial Services website (https://www.myfloridacfo.com/division/consumers/civil-remedy-notice-of-insurer-violations)

Step 2: Complete the form with the following required information:
☐ Name and address of the insurer
☐ Policy number
☐ Claim number
☐ Insured's name and address
☐ Specific statutory violation(s) being alleged:

• Section 624.155(1)(a): Violating section 626.9541(1)(i), (o), or (x) (unfair claims practices)
• Section 624.155(1)(b): Not attempting in good faith to settle claims when the obligation to settle has become reasonably clear
  ☐ Specific facts and circumstances giving rise to the violation
  ☐ Specific damages claimed

Step 3: File the CRN with the Department of Financial Services:

• Mail: Florida Department of Financial Services, Division of Consumer Services, 200 E. Gaines St., Tallahassee, FL 32399-0322
• Electronic filing available through the DFS portal

Step 4: Simultaneously serve a copy on the insurer

Step 5: Wait the 60-day cure period

• No action may be filed during the 60-day period
• If the insurer pays the damages or corrects the violation within 60 days, NO bad faith action may be filed
• If the insurer fails to cure within 60 days, the bad faith action may proceed

Step 6: If the insurer does not cure, file the bad faith lawsuit after the 60-day period expires

3. FLORIDA BAD FAITH ELEMENTS CHECKLIST

A. Statutory Bad Faith -- First-Party (Fla. Stat. Section 624.155)

☐ The insurer is an "authorized insurer" doing business in Florida
☐ The insured is a policyholder, beneficiary, or assignee
☐ The insurer engaged in one or more of the following:
☐ Violated Fla. Stat. section 626.9541(1)(i) (unfair claims settlement practices)
☐ Failed to attempt in good faith to settle a claim when the obligation to settle was reasonably clear
☐ A Civil Remedy Notice was filed with the Department of Financial Services (MANDATORY)
☐ The 60-day cure period expired without the insurer curing the violation
☐ The insured suffered damages as a reasonably foreseeable result
☐ Mere negligence alone is insufficient -- the insurer's conduct must have been more than negligent (HB 837 codification)

B. Common Law Bad Faith -- Third-Party (Failure to Settle)

Under Berges v. Infinity, 896 So.2d 665 (Fla. 2004):

☐ A valid liability policy covered the insured
☐ A third-party claim was made against the insured
☐ The insurer failed to settle the claim within policy limits
☐ An excess judgment was entered against the insured (generally required for third-party bad faith)
☐ The insurer's conduct, evaluated under the totality of the circumstances, was in bad faith

Totality of the Circumstances Test (Berges):
☐ Did the insurer diligently investigate the facts?
☐ Did the insurer promptly evaluate the claim?
☐ Did the insurer give fair consideration to settlement offers?
☐ Did the insurer attempt to settle when liability was clear?
☐ Did the insurer place its own interests above the insured's?
☐ Were there any settlement opportunities that the insurer failed to pursue?

Important -- Powell Affirmative Duty: Under Powell v. Prudential, 584 So.2d 12 (Fla. 3d DCA 1991), when liability is clear and injuries serious enough that an excess judgment is likely, the insurer has an affirmative duty to initiate settlement negotiations, even without a formal demand from the claimant.

C. HB 837 (2023) -- Key Changes

☐ 90-Day Safe Harbor: Insurers that tender the lesser of policy limits or the demanded amount within 90 days of receiving actual notice of a claim with sufficient evidence are immune from bad faith (Fla. Stat. section 624.155(3)(f))
☐ Mere Negligence Insufficient: Bad faith requires more than mere negligence (Fla. Stat. section 624.155(1)(c))
☐ Statute of Limitations Extended: 90-day extension if the insurer does not tender during the safe harbor
☐ Safe Harbor Evidence Inadmissible: If the insurer fails to tender during the 90-day period, that failure is inadmissible in a bad faith action

D. Excess Judgment Requirement (Third-Party)

☐ For third-party bad faith, an actual excess judgment against the insured is generally required before the bad faith action may be maintained
☐ The excess judgment establishes that the insurer's failure to settle resulted in actual harm
☐ The bad faith claim may be brought by the insured or by the third-party claimant as assignee

4. DAMAGES CALCULATION FRAMEWORK

A. Contract Damages

B. Bad Faith Statutory Damages (Section 624.155)

Note on HB 837 Attorney Fee Changes: Florida's 2023 tort reform significantly altered the attorney fee landscape. The one-way attorney fee provision under Fla. Stat. section 627.428 was repealed for most insurance claims filed after March 24, 2023. However, attorney fees may still be available under section 624.155(6) or other applicable provisions. Confirm current fee-shifting availability.

C. Consequential Damages

D. Punitive Damages

Florida Punitive Damages Standards:

• Standard: Clear and convincing evidence of intentional misconduct or gross negligence (Fla. Stat. section 768.72)
• Cap: Generally 3x compensatory damages or $500,000 (whichever is greater) (Fla. Stat. section 768.73)
• Higher Cap: If the insurer's conduct was motivated by unreasonable financial gain and the court determines the penalty is insufficient to punish, the cap is 4x compensatory or $2,000,000 (whichever is greater)
• No Cap: If the insurer intentionally engaged in the misconduct with specific intent to harm the insured, or if the conduct was part of a pattern/practice, there is no cap
• Procedure: Must plead and obtain leave of court to add punitive damages claim (Fla. Stat. section 768.72)

E. Total Damages Summary

5. BAD FAITH CONDUCT DOCUMENTATION CHECKLIST

A. Totality of the Circumstances Evidence (Berges Factors)

☐ Did the insurer diligently investigate the facts and circumstances of the claim?
☐ Date investigation commenced: [__/__/____]
☐ Was the investigation thorough and objective?
☐ Did the insurer keep the insured informed of the claim status?
☐ Did the insurer timely evaluate the claim and make a coverage decision?
☐ Did the insurer give fair consideration to settlement offers from the claimant?
☐ Did the insurer advise the insured of settlement opportunities?
☐ Did the insurer act to protect the insured from excess exposure?
☐ Did the insurer initiate settlement when liability was clear (Powell duty)?

B. CRN-Related Documentation

☐ Date CRN filed with DFS: [__/__/____]
☐ Date copy served on insurer: [__/__/____]
☐ 60-day cure period expiration date: [__/__/____]
☐ Did the insurer cure within 60 days? ☐ Yes ☐ No
☐ If partially cured, describe what remains outstanding: [________________________________]
☐ Preserve all communications during the 60-day cure period

C. 90-Day Safe Harbor Documentation (HB 837)

☐ Date "actual notice" with "sufficient evidence" provided to insurer: [__/__/____]
☐ 90-day safe harbor expiration date: [__/__/____]
☐ Did the insurer tender within 90 days? ☐ Yes ☐ No
☐ Amount tendered (if any): $[________________]
☐ Was the tender for the lesser of policy limits or the demanded amount?

D. Documents to Preserve and Obtain

☐ Complete claim file
☐ All internal communications and adjuster notes
☐ Reserve history (critical in Florida bad faith cases)
☐ All settlement communications
☐ Expert reports and evaluations
☐ Claims handling guidelines and manuals
☐ DFS complaint history
☐ Prior bad faith litigation against this insurer

6. PRE-SUIT REQUIREMENTS -- CIVIL REMEDY NOTICE (CRN)

MANDATORY CRN REQUIREMENTS

This is the single most important pre-suit requirement in Florida bad faith law. Failure to file the CRN, or filing a deficient CRN, will result in dismissal of the statutory bad faith claim.

A. Statutory Basis

Fla. Stat. section 624.155(3)(a):

"As a condition precedent to bringing an action under this section, the department and the authorized insurer must have been given 60 days' written notice of the violation."

B. CRN Requirements Checklist

☐ File the CRN on the official DFS form (available at myfloridacfo.com)
☐ State with specificity the following:
☐ The statutory provision(s) violated
☐ The facts and circumstances giving rise to the violation
☐ The specific damages claimed
☐ File with the Department of Financial Services
☐ Simultaneously provide a copy to the insurer
☐ Wait the full 60-day cure period before filing suit
☐ Confirm that the insurer has NOT cured the violation during the 60-day period

C. Common CRN Pitfalls

☐ Filing the CRN before the underlying claim is ripe (e.g., before denial)
☐ Failing to state specific statutory violations
☐ Failing to describe specific facts and circumstances
☐ Filing on a non-DFS form
☐ Failing to wait the full 60-day cure period before filing suit
☐ Filing multiple CRNs without basis (courts may scrutinize)

D. Statute of Limitations for Bad Faith Claims

Note: The HB 837 90-day safe harbor provides an additional 90-day extension if the insurer does not tender during the safe harbor period.

7. FLORIDA-SPECIFIC PRACTICE NOTES

A. Key Florida Bad Faith Cases

1. Berges v. Infinity Ins. Co., 896 So.2d 665 (Fla. 2004)
   - Established the "totality of the circumstances" test for third-party bad faith
   - "The focus in a bad faith case is not on the actions of the claimant but rather on those of the insurer in fulfilling its obligations to the insured"
   - The insurer is evaluated based on its claims handling process, not just the outcome

2. Powell v. Prudential Property & Cas. Ins. Co., 584 So.2d 12 (Fla. 3d DCA 1991)
   - When liability is clear and injuries serious enough that an excess judgment is likely, the insurer has an affirmative duty to initiate settlement, even without a formal demand
   - This is a powerful tool for claimants' counsel

3. Boston Old Colony Ins. Co. v. Gutierrez, 386 So.2d 783 (Fla. 1980)
   - Recognized that bad faith failure to settle is an independent cause of action
   - The insurer must exercise good faith equal consideration for the insured's interests

4. Fridman v. Safeco Ins. Co. of Illinois, 185 So.3d 1214 (Fla. 2016)
   - Addressed the insurer's duty in the context of policy limits demands
   - An insurer must respond to a time-limited demand with reasonable diligence

5. Harvey v. GEICO General Ins. Co., 259 So.3d 1 (Fla. 2018)
   - Addressed the insurer's obligations when multiple claimants compete for limited policy proceeds

B. HB 837 (2023 Tort Reform) -- Impact on Bad Faith

HB 837 made significant changes to Florida bad faith law, effective March 24, 2023:

Key Changes:

1. 90-Day Safe Harbor: If an insurer tenders the lesser of policy limits or the demand within 90 days of receiving notice with sufficient evidence, no bad faith claim arises
2. Mere Negligence Codified: Mere negligence alone is insufficient for bad faith (codifying existing case law)
3. Inadmissibility of Safe Harbor Failure: If the insurer fails to tender within 90 days, that failure is inadmissible in a bad faith action
4. Attorney Fee Changes: Repeal of one-way attorney fee provision (section 627.428) for most claims
5. Comparative Negligence Change: Modified comparative negligence (51% bar — plaintiff more than 50% at fault is barred) replaces pure comparative negligence (medical malpractice actions exempt)

Practice Implications:

• The 90-day safe harbor creates a new strategic consideration for demand timing
• Claimants should ensure their demands provide "actual notice" with "sufficient evidence" to trigger the safe harbor
• The insurer's response within the 90-day period should be carefully documented
• Post-HB 837 cases require heightened attention to the new statutory framework

C. First-Party vs. Third-Party Bad Faith in Florida

D. Florida Unique Considerations

1. CRN is Non-Negotiable: The CRN is the most important pre-suit requirement. Missing it means the case gets dismissed. No exceptions.

2. The 60-Day Cure Period is Real: Many insurers use the 60-day cure period to actually cure the violation by paying the claim. This is a feature, not a bug -- the statute is designed to encourage resolution.

3. Reserve Information: In Florida, claim reserves are discoverable in bad faith cases after the underlying claim is resolved. Reserve adequacy is important evidence of whether the insurer recognized the value of the claim.

4. Assignment of Bad Faith Claims: Florida permits assignment of bad faith claims from the insured to the claimant, typically as part of a consent judgment/covenant not to execute agreement.

5. HB 837 Applicability: The reforms apply to claims arising from incidents occurring after March 24, 2023. For incidents before that date, the prior law applies.

6. Multiple Claimants: When multiple claimants compete for limited policy proceeds, the insurer must act with special care. See Harvey v. GEICO, 259 So.3d 1 (Fla. 2018).

E. Statute of Limitations

8. SAMPLE TIME-LIMITED DEMAND CONDITIONS

A. Payment and Release

☐ Full payment within [____] business days of acceptance
☐ Check payable to "[________________________________] and [________________________________], as Trustees"
☐ Standard release of the named insured only
☐ No confidentiality, indemnification, or hold-harmless provisions
☐ No release of the insurer from independent claims
☐ Release does not affect Medicare/Medicaid rights or obligations

B. Florida-Specific Conditions

☐ This demand provides "actual notice" with "sufficient evidence" per Fla. Stat. section 624.155(3)(f) (HB 837 safe harbor)
☐ The insurer must disclose all available policy limits including umbrella/excess
☐ The insurer must immediately notify the insured of this demand
☐ The insurer must advise the insured of excess exposure and the right to personal counsel
☐ Any response must be in writing; oral counter-offers are not acceptable
☐ If the insurer intends to interplead funds due to multiple claimants, it must notify claimant's counsel immediately

C. Communication Requirements

☐ Written acceptance received at counsel's office by the deadline
☐ Any modification constitutes a counteroffer and rejection
☐ Insurer must confirm acceptance is binding on behalf of the insured

9. SOURCES AND REFERENCES

Florida Statutes

• Fla. Stat. section 624.155 -- Civil Remedy: https://m.flsenate.gov/statutes/624.155
• Fla. Stat. section 626.9541 -- Unfair Insurance Trade Practices
• Fla. Stat. section 95.11 -- Statute of Limitations
• HB 837 (2023): https://www.flsenate.gov/Session/Bill/2023/837

Key Cases

• Berges v. Infinity Ins. Co., 896 So.2d 665 (Fla. 2004)
• Powell v. Prudential Property & Cas. Ins. Co., 584 So.2d 12 (Fla. 3d DCA 1991)
• Boston Old Colony Ins. Co. v. Gutierrez, 386 So.2d 783 (Fla. 1980)
• Fridman v. Safeco Ins. Co. of Illinois, 185 So.3d 1214 (Fla. 2016)
• Harvey v. GEICO General Ins. Co., 259 So.3d 1 (Fla. 2018)

Administrative Resources

• Florida DFS -- Civil Remedy Notice: https://www.myfloridacfo.com/division/consumers/civil-remedy-notice-of-insurer-violations
• Florida Office of Insurance Regulation: https://www.floir.com/
• Chartwell Law -- Florida Bad Faith: https://www.chartwelllaw.com/bad-faith-claims-map/florida

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice and should not be used as a substitute for consultation with a qualified attorney licensed in Florida. Florida bad faith law is highly complex and has been significantly modified by HB 837 (2023). Always verify current law and confirm all citations before use.

Last updated: 2026-03-21