FLORIDA AUTO INSURANCE GUIDE
Florida Third-Party Failure to Settle & Excess Exposure
Florida liability-settlement law changed materially in 2023. Under Fla. Stat. § 624.155, a liability bad-faith action does not lie if the insurer tenders the lesser of policy limits or the amount demanded within 90 days after receiving actual notice of a claim accompanied by sufficient evidence to support the amount of the claim.
- Document the date and contents of actual claim notice and the evidence supporting the demand.
- Distinguish the statutory 90-day liability safe harbor from ordinary settlement-deadline practice.
- Evaluate claimant, insured and representative conduct because current law imposes good-faith duties on all participants in the settlement process.
- Analyze multiple-claimant, competing-demand and interpleader issues under current Florida law before concluding excess exposure exists.
Primary Florida Source
Fla. Stat. § 624.155 — Liability Bad Faith and Safe Harbor
Current-law review: September 16, 2026. Pre-2023 Florida failure-to-settle cases must be read together with the current statute.
VictimsGuide 