Civil Remedy Notices – What Are They and What Do They Require?
Insurance policies protect you from the cost of replacing lost, damaged, or stolen items: or at least, that’s how they’re supposed to work. But what happens if your insurance company refuses to pay what you are owed?
If you live in Florida, one of your options is to file a Civil Remedy Notice (or CRN) with the Department of Financial Services. Read on to learn more about what a CRN is, how it works, and how to file one.
What Is the Purpose of a Civil Remedy Notice in Florida?
A CRN serves as notice to the insurance company that a bad faith claim is forthcoming, and provides the company with an opportunity to remedy the situation before a bad faith lawsuit is filed. A Civil Remedy Notice is a prerequisite to filing a bad faith action after statutory violations have occurred.
The Department of Financial Services explains that “the Civil Remedy Notice is intended for use by parties who are beginning the process of filing suit against an insurer, when a party feels they have been damaged by specific acts of the insurer.”
How Many Days Do Insurers Have To Respond to a Civil Remedy Notice in Florida?
The policyholder must file a civil remedy notice “with both the insurer and the Department of Financial Services (DFS) at least 60 days prior to bringing an action against the insurer.” If the insurance company provides a remedy within those 60 days, no further action may be taken. If the company does not respond or provide a remedy within 60 days, this failure may itself constitute bad faith dealing. It’s important to note that the 60-day period begins at the time of filing, not from the time the insurance company receives a copy.
What Happens if I Miss the 60-Day Deadline for a Civil Remedy Notice in Florida?
If you don’t file a CRN more than 60 days before bringing a bad faith lawsuit, it might negatively impact your claim of bad faith dealing, since the insurance company may argue that you failed to follow the statutory requirements.
How Do I File a CRN?
In order to file a CRN, the insured must meet several requirements. Once those are met, the Department of Financial Services has provided instructions for completing a CRN and what information is required. A CRN should include:
The name of the insurance company that the insured claims is in violation of the Florida Statutes, as well as any representatives of the insurer that the insured believes is/are responsible for the violation.
The name of the complainant, the name of the insured, the policy number, claim number, and the name of the individual filing the CRN. The filer should indicate whether the complainant is the insured, a third-party claimant, or a third party.
An indication of the type of insurance involved, such as homeowners insurance or commercial insurance. If the type of insurance is not listed on the form, the filer should check “Miscellaneous.”
The state statutes the filer claims were violated (including the specific language). The filer should reference the specific policy language relevant to the violation and note in the CRN if the policy language is not available.
A description of the facts related to the claimed violation. Florida Statute §624.155(3)(b) requires a CRN to, “state with specificity…the facts and circumstances giving rise to the violation.”
Florida courts have held that a CRN need not specify a monetary amount required to “cure” the violation.1
How Does the Florida Insurance Code Impact Civil Remedy Notices?
The Florida Insurance Code provides the legal framework within which civil remedy notices operate, and sets the standards for interactions between insurers and policyholders. The Code further outlines the specific requirements for filing a CRN, the insurer’s response timeframe, and the potential consequences for non-compliance.
Can You Withdraw a Civil Remedy Notice in Florida?
In general, no. A CRN is intended as a formal step towards potential legal action. There are, however, specific circumstances under which a CRN may be withdrawn; it’s best to consult with a lawyer (and not a public adjuster) to see if your circumstances would allow it.
Further Resources on Insurance Coverage Law
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1 Hunt v. State Farm Ins. Co., 112 So.3d 547 (Fla. 2d DCA 2013) (“On its face, the statute does not require a specific cure amount. We are hesitant to impose a requirement beyond that directed by the legislature.”).
