Florida Agency Brief: Supreme Court Ruling on Old Claims

What happened

On Oct 22, the Florida Supreme Court ruled unanimously that the 2021 presuit notice requirement does not apply to a suit on a policy issued before July 1, 2021, in Hughes v. Universal Property & Casualty. That lawsuit was filed in August 2021 over a 2019 water damage claim. The ruling settles a split among Florida appeals courts on whether the requirement reaches policies that already existed when the law took effect (Florida Phoenix).

The law at issue, SB 76, took effect July 1, 2021. It requires a written notice of intent to sue, sent to the Department of Financial Services on its form at least 10 business days before filing suit (section 627.70152(3)(a), quoted in the court opinion). Hughes bought her policy in April 2019, so the question was whether that rule reaches a policy issued before the law existed.

Chief Justice Couriel wrote the opinion. Five justices concurred, and Justice Tanenbaum concurred in a separate opinion. As of Oct 26, no motion for rehearing had been filed, but the decision is not final until the time to file one expires. Under Florida Rule of Appellate Procedure 9.330, that is 15 days, or Nov 6. The Florida Justice Reform Institute, which backed the insurer, said the ruling gives a clearer test: "if it's not clearly stated in the legislation, it's not going to be retroactive" (Florida Phoenix). Read the full opinion for the exact scope: Florida Supreme Court opinion SC2024-0025.

Why it matters for your agency

Older property claims tied to policies written before July 1, 2021 may come back to your desk. Clients, attorneys and carriers may ask for claim histories, notice dates and old correspondence. If that material lives in three inboxes and a spreadsheet, a simple request turns into a scavenger hunt.

You are not the lawyer here, and this post is not legal advice. Your job is to find the file fast and send the client to the right professional.

Three things to do this week

1. Pull the list. Run a report of property claims, open or recently closed, tied to policies issued before July 1, 2021. The court looked at the date the policy was issued. The opinion does not address renewals, so ask your attorney how renewals are treated.
2. Write one standard answer. For the client who calls asking "does this change my claim?", agree on a short script: we can send your file, we cannot give legal advice, your attorney or carrier can answer. Log every call.
3. Mark two dates. Oct 27 is the OIR hearing on workers' comp rates. Nov 10 at 5 p.m. ET closes written comments. Both help you prepare January commercial renewals.

Also on the radar

• Workers' comp hearing, Oct 27, 10 a.m. ET (virtual). OIR hears NCCI's proposal to lower voluntary market workers' comp rates by an average 7.4% for policies effective Jan 1, 2027. It is a proposal, not an approved rate. If you cannot attend, comments go to ratehearings@floir.com until Nov 10. Verify details on the OIR page.
• Citizens commercial clearinghouse is stalled. OIR wrote on Sept 15 that it was "unable to approve the clearinghouse program" for now, and a January statutory deadline is close, per Insurance Journal. Plan commercial Citizens renewals as usual. Insurance Journal
• Attorney General investigates anti-public adjuster clauses. On Oct 20 the AG subpoenaed Velocity Risk Underwriters over clauses that can let an insurer reject a whole claim if the homeowner hires a public adjuster. It is an investigation, not a finding. If you place surplus lines homeowners business, know which forms carry such clauses. Florida Attorney General