First-party coverage and first-party bad-faith actions seeking extra-contractual damages beyond the policy limit are separate and distinct lawsuits in Florida. An insured cannot try a premature statutory bad-faith claim at the same time as a claim disputing insurance coverage.
First-party bad-faith claims arising from uninsured motorist (UM) coverage are separate and independent actions, too. If the uninsured motorist coverage action is truly separate and distinct from bad faith, one naturally expects a separate trial on bad-faith liability and extracontractual damages. However, there is a unique problem confronting first-party bad-faith claims arising from uninsured motorist coverage under Florida Statute Section 627.727(10). One decision characterizes the problem as a ‘‘conundrum” created by Florida law.
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