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Liability And Damages: Understanding Property Insurance Bad Faith Litigation In Florida

March 13, 2015

Florida recognizes two general categories of insurance bad faith: first-party and third-party. A cause of action for third-party bad faith exists at common law, but also may be brought under the Florida bad faith statute. The essence of a cause of action for third-party bad faith is that the insurer breached its duty to its insured by failing to properly or promptly defend claim, which resulted in the insured being exposed to a judgment in excess of the coverage limits.

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