Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent is reviewing a client's commercial property policy. The client operates a small manufacturing business and is concerned about potential damage to their inventory and equipment due to a fire. Which Florida Statute specifically outlines the requirements for property insurance policies concerning prompt payment of claims and fair settlement practices?
- AFlorida Statute 627.7013
- BFlorida Statute 627.701
- CFlorida Statute 627.702
- DFlorida Statute 627.706
Show answer & explanationAnswer & explanation
Correct answer: A. Florida Statute 627.7013
Florida Statute 627.7013 specifically addresses prompt payment of claims and fair settlement practices in property insurance policies, including requirements for insurers to acknowledge communications and pay or deny claims within specified timeframes.
Why the other options are wrong
- B. This statute pertains to residential property insurance policies and hurricane deductibles, not general prompt claim payment.
- C. This statute deals with coverage for sinkhole losses, which is a specific peril, not general claim payment practices.
- D. This statute addresses alternative procedure for resolution of disputed property insurance claims, which is a different aspect than prompt payment itself.
Florida Statute 627.7013
This Florida Statute outlines the requirements for prompt payment of claims and fair settlement practices for property insurance policies, ensuring insurers handle claims efficiently and equitably.
- Applies to property insurance policies.
- Mandates acknowledgment of communications within 14 days.
- Requires payment or denial of claims within 90 days after notice.
- Includes provisions for undisputed amounts to be paid promptly.
Memory trick: Prompt payments ensure fairness, like clockwork and scales.