How to File a Civil Remedy Notice Alleging Bad Faith of an Insurer in Florida: A Guide for Car Accident Victims

If you’ve been involved in a car accident in Florida and are struggling with an insurance claim that seems to be dragging on or being unfairly denied, you may be dealing with bad faith insurance practices. Insurance companies are required to act in good faith and deal fairly with their policyholders. When they fail to do so, Florida law allows victims to file a Civil Remedy Notice (CRN) to hold insurers accountable for their actions.

This article will walk you through what bad faith insurance is, how to file a Civil Remedy Notice (CRN), and what steps you need to take to protect your rights.

What is Bad Faith Insurance in Florida?

Bad faith insurance occurs when an insurance company does not fulfill its obligations to the policyholder or fails to act in a fair and reasonable manner during the claims process. In Florida, insurers are legally obligated to “act in good faith” when handling claims. This means they must deal with their policyholders honestly, promptly, and fairly.

Common Signs of Bad Faith

Some common examples of bad faith insurance practices include:

• Unreasonable delay in processing a claim.
• Unjust denial of a claim without proper explanation or investigation.
• Lowballing settlement offers that do not cover the full extent of damages.
• Failure to communicate with the policyholder in a reasonable amount of time.
• Misrepresentation of policy terms to avoid a payout.
• Refusal to provide a reasonable settlement or “stubbornly” resisting paying what is owed.

When these actions occur, the victim may be entitled to seek compensation through a Civil Remedy Notice (CRN).

What is a Civil Remedy Notice (CRN)?

A Civil Remedy Notice is a legal document filed with the Florida Department of Financial Services (DFS) when a policyholder believes that their insurance company is acting in bad faith. The CRN notifies the insurer that it has engaged in bad faith conduct and provides the insurer with a chance to remedy the situation before the policyholder takes legal action.
Filing a CRN is a crucial step for policyholders in Florida who want to ensure that they are protected under the state’s bad faith laws. It essentially gives the insurer a final chance to correct their behavior, and if they fail to do so within 60 days of receiving the notice, the policyholder may be able to sue the insurance company for damages resulting from the bad faith.

Why is Filing a Civil Remedy Notice Important?

• Required by Law: Florida law mandates that you must file a CRN before you can file a lawsuit for bad faith insurance practices. Failing to do so could lead to your case being dismissed.
• Legal Leverage: The CRN gives the insurer a chance to “cure” the bad faith actions and avoid a lawsuit. If they do not resolve the issue within 60 days, you may have the legal grounds to pursue punitive damages and other remedies.
• Strengthens Your Case: Filing a CRN creates an official record of your complaint, which can be used as evidence in court if your case escalates to a lawsuit.
• Ensures Accountability: It holds the insurance company accountable for its actions and pressures them to treat you fairly.

How to File a Civil Remedy Notice Alleging Bad Faith in Florida

Filing a CRN in Florida can be a complicated process, and the details are important to ensure that your complaint is properly addressed. Below is a step-by-step guide to help you through the process.

Step 1: Consult with an Attorney

Before filing a CRN, it’s important to consult with an attorney who specializes in insurance bad faith claims. An attorney can:

• Evaluate whether the insurance company’s actions truly constitute bad faith.
• Help you gather evidence to support your claim.
• Draft the CRN properly to ensure that it meets all legal requirements.
• Represent you in legal proceedings if the insurer does not cure their bad faith actions.

While you are not required to hire an attorney to file a CRN, doing so significantly increases your chances of success.

Step 2: Gather Documentation and Evidence

To file a Civil Remedy Notice, you need to provide evidence that supports your claim of bad faith. Common types of evidence include:

• Your insurance policy: Review your auto insurance policy to understand your coverage limits, obligations, and rights.
• Communication records: Keep track of all communication with your insurer, including emails, letters, phone calls, and claim forms. A clear timeline of correspondence will show if the insurer is delaying or avoiding their responsibilities.
• Claim documents: Gather any paperwork related to your claim, including estimates, medical records, photos of your car damage, accident reports, and witness statements.
• Settlement offers or denials: If you’ve received lowball offers or denials, be sure to document those as well.

Your attorney can help you determine the specific documents that will be most useful for your case.

Step 3: Prepare the Civil Remedy Notice

A Civil Remedy Notice must include specific details to comply with Florida’s bad faith laws. Here’s what the CRN should include:

• The Insurer’s Name and Address: You must provide the name of the insurance company and the address where the insurer is located or where it handles claims.
• Your Name and Policy Number: Your name, address, and the policy number associated with the insurance claim must be clearly stated.
• The Claim Details: Include a detailed description of the insurance claim in question, including the date of the accident, the damages involved, and the claim number.
• The Allegations of Bad Faith: This section should explain why you believe the insurer acted in bad faith. This could involve an unreasonable delay in processing the claim, failure to investigate properly, or underestimating the value of your damages.
• The Specific Statutes Violated: Florida law requires you to identify the specific sections of the insurance code that the insurer has violated. Your attorney can help with this.
• A Demand for Remedy: The CRN must also state what you want the insurer to do to “cure” the bad faith action. This could include issuing a fair settlement, paying the full amount owed, or taking other corrective action.

Step 4: Submit the Civil Remedy Notice to the Department of Financial Services (DFS)

Once your CRN is prepared, it must be filed with the Florida Department of Financial Services (DFS). The DFS has an online portal that allows you to file the notice electronically. You will need to create an account and provide all required documentation.

Once submitted, the DFS will send the Civil Remedy Notice to the insurer. The insurer has 60 days to either:

• Resolve the claim and “cure” the bad faith actions.
• Dispute the CRN, in which case, the insurer must respond and explain why it disagrees with the claim.

If the insurer fails to cure the alleged bad faith within 60 days, you may proceed with filing a lawsuit against them for bad faith practices.

Step 5: Consider Legal Action

If the insurer does not remedy the situation within 60 days, you may be able to file a lawsuit. Your attorney can help you pursue legal action for damages, including punitive damages, which are designed to punish the insurer and deter future bad faith actions.

Step 6: Take Further Action if Needed

If your claim proceeds to court, your attorney will guide you through the legal process, which may include:

• Filing a lawsuit in the appropriate court.
• Engaging in discovery to gather more evidence.
• Negotiating a settlement or proceeding to trial.

Conclusion

Filing a Civil Remedy Notice in Florida is a critical step for car accident victims who believe their insurance company is acting in bad faith. It’s an opportunity to hold the insurer accountable and ensure you are treated fairly. By following the proper steps and consulting with an experienced attorney, you can take action to protect your rights and improve your chances of getting the compensation you deserve.

If you are dealing with an insurance company that is not acting in good faith, don’t hesitate to take action. Your future is at stake, and Florida’s legal system provides tools like the CRN to help you fight back.

If you are injured in an accident, call Jaime “Mr. 786 Abogado” Suarez today to Get You Paid!