This authorized framework in Florida governs the conduct of insurance coverage firms in dealing with claims. It establishes a typical of care requiring insurers to behave in good religion in 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 professional declare with no affordable foundation. For instance, if an insurance coverage firm affords a settlement considerably beneath the affordable 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 taking part in subject by holding insurance coverage firms accountable for his or her actions and guaranteeing they fulfill their contractual obligations. Traditionally, this laws arose from issues about insurance coverage firms prioritizing their very own monetary pursuits over the professional 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.
