This authorized framework in Florida governs the conduct of insurance coverage firms in dealing with claims. It establishes a normal of care requiring insurers to behave in good religion in direction of their policyholders. A breach of this responsibility can happen when an insurer fails to correctly examine a declare, unreasonably delays cost, or denies a legit declare and not using a affordable foundation. For instance, if an insurance coverage firm gives a settlement considerably under the affordable worth of a declare and refuses to barter additional, it might be thought of a violation of this statute.
The importance of this laws lies in its safety of insured people and entities. It ranges the enjoying discipline by holding insurance coverage firms accountable for his or her actions and making certain they fulfill their contractual obligations. Traditionally, this laws arose from issues about insurance coverage firms prioritizing their very own monetary pursuits over the legit claims of their policyholders. Its existence deters unfair claims practices and promotes the immediate and honest decision of disputes. In the end, it safeguards the monetary well-being of Floridians who depend on insurance coverage protection to guard themselves from unexpected losses.
