Insurers owe a fiduciary duty to their policyholders and are required to “…refrain from acting solely on the basis of their own interest in settlement.” State Farm Mut. Auto Ins. Co. v. Laforet, 658 So. 2d 55 (1995). Pursuant to Florida’s Unfair Trade Practices Act, any of the following can constitute bad faith:

• Attempting to settle claims on the basis of an application that had been altered without notice to the insured
• A material misrepresentation made to an insured with the intent of effecting settlement under such contract on less favorable terms than those provided in the policy
• Committing any of the following as a general business practice:
• Failing to properly investigate claims
• Misrepresenting pertinent facts or insurance policy provisions
• Failing to promptly communicate with insureds
• Denying claims without conducting reasonable investigations
• Failing to affirm or deny full or partial coverage of claims upon the written request of the insured within 30 days after proof-of-loss statements have been completed
• Failing to offer a reasonable explanation in writing to the insured for denial of a claim or for the offer of a compromise settlement
• Failing to promptly notify the insured of additional information necessary for the processing of a claim; or
• Failing to clearly explain the nature of the requested information and the reason why such information is necessary

Call FLG for sound advice and immediate assistance in your Florida Insurance Disputes.