Ch 1 · Foundations
Module 1.1
Florida Insurance Law Cheat Sheet
Timeframes. Statutes. Violations. Fines. The 12 levers that move carriers. Current as of 2025 (post-SB 2A + HB 837).
18 min read
What you'll learn
The laws that govern carriers, claims, and PAs in Florida. Timeframes. Statutes of limitations. Violations. Fines. The 12 levers that move carriers.
Current as of 2025 — post-SB 2A (Dec 2022) and HB 837 (Mar 2023).
1.1.1 The 3 chapters that matter
Florida insurance law lives in 3 places.
| Chapter | Governs |
|---|---|
| Chapter 624 | Insurance code basics. Bad faith (§ 624.155). |
| Chapter 626 | Adjusters + agents. PA licensing, conduct, fee caps (§ 626.854). UITPA (§ 626.9541). |
| Chapter 627 | Insurance contracts + claims. The big property-claim statutes (§§ 627.70131, 627.70132, 627.70152, 627.7142, 627.7152). |
1.1.2 The carrier's clock — every deadline is leverage
| Day | Carrier must… | Statute |
|---|---|---|
| Day 0 | Homeowner gives notice. Interest starts accruing on unpaid amounts. | § 627.70131(7) |
| 7 calendar days | Acknowledge any claim communication. (Was 14 days pre-SB 2A.) | § 627.70131(1) |
| 14 days | Provide Homeowner Claims Bill of Rights. | § 627.7142 |
| 30 days from complete POL | Confirm coverage (full/part), deny, or state still investigating. | § 627.7142 |
| 60 days from notice | Pay or deny — initial, reopened, or supplemental. (Was 90 days pre-SB 2A.) Written explanation required if payment is less than carrier's own estimate. | § 627.70131(7) |
| 7 days of generating an estimate | Provide homeowner a copy. | § 627.7142 |
| 10 business days of pre-suit notice | Respond w/ acceptance, denial, or settlement offer. | § 627.70152 |
| 60 days of CRN filing | "Cure" alleged bad-faith violation, or face a bad-faith action. | § 624.155 |
Miss = leverage. Statutory interest accrues on unpaid amounts from notice date. Repeated/willful violations = administrative fines + bad-faith liability.
1.1.3 The homeowner's clock — miss it, lose the claim
| Action | Deadline | Statute |
|---|---|---|
| Notice of new claim or reopened claim | 1 year from date of loss (was 2; was 4) | § 627.70132 |
| Notice of supplemental claim | 18 months from date of loss (was 3 years) | § 627.70132 |
| Pre-suit notice before lawsuit | At least 10 business days before filing | § 627.70152 |
| Lawsuit on the policy (SOL) | 5 years from breach of contract | § 95.11(2)(b) |
| Bad-faith action | Generally 5 years from breach + final judgment in underlying suit | § 624.1551, § 95.11 |
| Carrier-requested document production | 10 days to provide requested material claims info, or carrier's clock pauses | § 627.70131(5)(b) |
| Sworn proof of loss when requested | Typically 60 days from carrier's request | Policy condition |
The 1-year rule applies to losses on/after Dec 16, 2022. Older losses may have older windows. Never assume longer without checking the policy + date of loss.
1.1.4 What carriers cannot do — UITPA (§ 626.9541)
Florida's Unfair Insurance Trade Practices Act lists what counts as unfair claims handling. Statutory violations — not guidelines.
Top examples to flag:
- Misrepresenting policy provisions or facts
- Failing to acknowledge claims promptly
- Failing to act in good faith to settle when liability is reasonably clear
- Compelling insureds to litigate by offering substantially less than what is ultimately recovered
- Denying claims without reasonable investigation
- Failing to promptly provide written explanation for denial/partial denial
- Not attempting in good faith to effectuate prompt, fair, equitable settlements
- Soliciting recorded statements then using them to deny
- Failing to maintain claim-handling records as required
Penalty exposure (§ 626.9521):
| Violation | Max fine |
|---|---|
| Non-willful | $2,500/violation ($10K cap per 12 months) |
| Willful | $20,000/violation ($100K cap for related violations per 12 months) |
| Willful + senior/vulnerable consumer | $30,000/violation |
1.1.5 PA rules — what PAs can and cannot do
Fee caps (§ 626.854(11))
| Claim type | Max PA fee |
|---|---|
| First year after Governor-declared emergency, related claim | 10% of payments |
| All other claims | 20% of payments |
| Increasing fee because claim went to litigation | Prohibited — § 626.854(11)(e) |
Any "maneuver, shift, or device" to exceed = statutory violation, § 626.854(11)(f).
Other PA rules
- Written contract required w/ specific statutory disclosures, 18-pt bold where required.
- Right to cancel: 10 days standard. 5 business days during declared emergency, for losses within 1 year of declaration.
- Written estimate within 60 days of contract execution, kept on file 5 years.
- 48-hour notice required from carrier reps for any meeting/inspection (insured can waive).
- No loans or advances to clients. No gifts/merchandise over $25 as inducement.
- No referral compensation to/from non-PAs (§ 626.854(13)).
- No solicitation during certain hours, on Sundays, or within specific time windows after a loss in some emergencies.
Penalties against PAs
| Violation | Max fine |
|---|---|
| General PA violation (per act) | $5,000 under § 626.8698 |
| Roof-related solicitation violations | $10,000/act |
| Same, during declared emergency | $20,000/act |
| Pattern of unfair claims practices | License suspension/revocation (§§ 626.611, 626.621) |
1.1.6 The big 2022–2023 reforms — what changed
If anyone uses pre-2023 advice, it's bad advice.
SB 2A (effective Dec 16, 2022)
- Killed the one-way attorney fee under § 627.428 for property suits. Insureds no longer automatically recover fees if they prevail.
- Shortened claim notice 2 yrs → 1 year (new), 3 yrs → 18 months (supplemental).
- Shortened carrier clock 14 days → 7 days (acknowledge), 90 days → 60 days (pay/deny).
- Banned new AOBs on residential property policies issued/renewed on/after Jan 1, 2023 (narrow exceptions).
- Allowed mandatory binding arbitration clauses under § 627.70154.
- Tightened bad-faith predicates. § 624.1551 now requires breach of contract + final judgment in underlying action before bad-faith claim can proceed.
HB 837 (effective Mar 24, 2023)
- Repealed § 627.428 + § 626.9373 entirely — the one-way fee statutes.
- Created § 86.121 — narrow new one-way fee right, only when insured wins a declaratory judgment after a "total coverage denial." Single biggest remaining fee-shifting tool for policyholder attorneys.
- General tort reform — modified comparative negligence; general negligence SOL 4 yrs → 2 yrs.
Bottom line: the fee-shifting rules that made small property cases attractive on contingency are mostly gone. Attorneys now look for cases with bigger upside, total denials, or § 57.105 / § 768.79 sanctions exposure.
1.1.7 The 12 levers — how PAs and attorneys move carriers
Lever 1 — Document statutory deadline violations
Every missed § 627.70131 deadline goes in the file. Acknowledged in 7? Paid/denied in 60? Written explanation when estimate was lower (required by § 627.70131(7))? Carriers settle faster when they realize the file shows clear violations.
Lever 2 — File a Civil Remedy Notice (CRN)
Filed w/ DFS under § 624.155. Identifies alleged statutory + policy violations. Carrier has 60 days to cure. Fail to cure + homeowner wins underlying = bad-faith exposure w/ extra-contractual damages. A well-drafted CRN often produces a check inside 60 days.
Lever 3 — Demand pre-suit notice compliance
§ 627.70152. Carrier has 10 business days to respond — accept, deny, or counter. Response gets locked in. Non-response = its own litigation problem for the carrier.
Lever 4 — Demand the carrier's estimate + claim file
§ 627.70131(7) requires written explanation if carrier paid less than they estimated. PAs and attorneys routinely demand:
- Full Xactimate estimate
- Field adjuster's report + photos
- Engineering reports
- The reserve set on the file (in litigation)
Often the carrier's own estimate proves the homeowner's case.
Lever 5 — Invoke appraisal strategically
Most policies include appraisal clause for amount of loss disputes. Faster + binds both sides. NOT for coverage disputes — different fight. Detail in Module 8.0 — Three Roads Out.
Lever 6 — Trigger the matching statute
§ 626.9744 requires reasonably uniform appearance after partial replacement (within line of sight). Tile, cabinets, siding. Roof matching has been tightened by recent reforms — check current language.
Lever 7 — Ordinance and Law / code upgrade demands
Most policies include 10–50% O&L coverage. Carriers rarely volunteer it. Identify every code-required upgrade during repair → demand payment under O&L coverage.
Lever 8 — § 57.105 / § 768.79 / § 86.121
Post-HB 837 tools attorneys lean on:
- § 57.105 — sanctions for unsupported pleadings/defenses. Forces carriers to think twice before fighting reasonable claims.
- § 768.79 — proposal for settlement. If insured offers $80K, carrier rejects, verdict $120K (>25% over), insured can recover fees from offer date forward.
- § 86.121 — declaratory action fees on total coverage denial.
Narrower than old one-way fee, but they bite.
Lever 9 — DFS Mediation (§ 627.7015)
Free, non-binding, carrier pays the mediator. Available for most residential property disputes. Surprisingly effective pressure tool for mid-size claims.
Lever 10 — Examination Under Oath (EUO), played both ways
Carrier demands EUO → insured complies through counsel → EUO becomes a fixed record. PAs/attorneys use carrier's questions to identify what carrier thinks is weak. Address head-on.
Lever 11 — Document every UITPA violation
Every § 626.9541 violation in the file. Lowballing without explanation. Demanding documents already provided. Ignoring evidence. Improper depreciation. Each documented in the demand and CRN.
Lever 12 — The bad-faith setup
Under § 624.1551 (post-SB 2A), bad-faith claim requires breach of contract + final judgment. Play:
- Document everything cleanly during claim
- File precise CRN
- Let 60-day cure window pass
- Win underlying breach-of-contract case
- Bring bad-faith action with full file already built
When carriers see the file is being built that way, they often settle the underlying case before bad faith ripens.
1.1.8 Statute pocket index
| Citation | What |
|---|---|
| § 624.155 | Civil remedy / bad faith |
| § 624.1551 | Predicate requirement for bad faith (breach + judgment) |
| § 626.611, § 626.621 | Grounds for adjuster license suspension/revocation |
| § 626.854 | Public adjuster definition, conduct, fee caps |
| § 626.8698 | PA fines + disciplinary penalties |
| § 626.9541 | Unfair Insurance Trade Practices Act (UITPA) |
| § 626.9744 | Matching statute |
| § 627.4025 | Definition of residential coverage |
| § 627.428 | Old one-way attorney fee — REPEALED by HB 837 |
| § 627.7011 | Loss settlement / replacement cost rules |
| § 627.70131 | Acknowledge / investigate / pay-or-deny timeframes |
| § 627.70132 | 1-year / 18-month claim notice deadlines |
| § 627.7015 | DFS mediation program |
| § 627.70152 | Pre-suit notice requirement |
| § 627.70154 | Mandatory binding arbitration (when included in policy) |
| § 627.7142 | Homeowner Claims Bill of Rights |
| § 627.7152 | AOB restrictions (largely closed for residential post-1/1/2023) |
| § 57.105 | Sanctions for unsupported claims/defenses |
| § 768.79 | Proposal for settlement / offer of judgment |
| § 86.121 | One-way fees on declaratory action after total coverage denial |
| § 95.11 | General statutes of limitations |
1.1.9 The mental model
Carriers operate on legal deadlines. Every deadline they miss is your leverage.
Documentation beats argument. A clean file w/ dated communications, photos, statutory citations outperforms a long phone call every time.
The 2022–2023 shift is real. Fee-shifting mostly gone. Attorneys take fewer small cases. That makes a competent public adjuster more valuable on mid-size claims, not less.
When a carrier blows a deadline — file the CRN. Don't threaten. File. Carriers cure to avoid bad faith. Precise CRN inside 60 days often produces a check.
Read your policy. Read your Bill of Rights. Document everything. Cite the statute.
That's how the game is played in Florida now.
1.1.10 Action steps
- Bookmark this page.
- Calendar your 1-year notice deadline the day a loss happens.
- Document the carrier's clock from Day 0 — every communication, dated.
- Read § 627.70131 + § 627.70132 directly at leg.state.fl.us.
- If the carrier blows a deadline, document it. CRN if it matters.
Next: Chapter 2 — Reading Your Policy Like an Adjuster.
Educational. Not legal advice. Florida insurance law continues to evolve. SB 2A (Dec 16, 2022) and HB 837 (March 24, 2023) substantially altered claim, attorney-fee, and AOB rules; subsequent amendments may apply. Verify any deadline or rule against current Florida Statutes and case law before relying on it for a specific claim.