This authorized framework in Florida governs the conduct of insurance coverage corporations in dealing with claims. It establishes a regular of care requiring insurers to behave in good religion in the direction of their policyholders. A breach of this obligation can happen when an insurer fails to correctly examine a declare, unreasonably delays cost, or denies a respectable declare with no cheap foundation. For instance, if an insurance coverage firm presents a settlement considerably beneath the cheap worth of a declare and refuses to barter additional, it could possibly be thought-about a violation of this statute.
The importance of this laws lies in its safety of insured people and entities. It ranges the enjoying subject by holding insurance coverage corporations accountable for his or her actions and making certain they fulfill their contractual obligations. Traditionally, this laws arose from issues about insurance coverage corporations prioritizing their very own monetary pursuits over the respectable claims of their policyholders. Its existence deters unfair claims practices and promotes the immediate and truthful decision of disputes. Finally, it safeguards the monetary well-being of Floridians who depend on insurance coverage protection to guard themselves from unexpected losses.
