FL S1284

Requires parties bringing common-law bad faith claims against insurers to provide 60 days' written notice to the Department of Financial Services and the insurer, with notice specifying the violated duty and any unpaid monetary amounts.

Allows insurers to cure violations within 60 days by paying damages or correcting circumstances, with tender of the demanded amount or policy limits constituting correction for statutory or common-law bad faith claims.

Entitles insured parties to a general release from third-party claimants upon the insurer's tender of the amount demanded in the notice or applicable policy limits in third-party liability claims.

Permits insurers to file interpleader actions within 90 days when multiple third-party claimants' competing claims exceed available policy limits, with third-party claimants receiving a prorated share of policy limits if claims are found to exceed coverage.

Tolls the statute of limitations for 65 days upon mailing of the notice required by this section for actions under this statute or based on common-law bad faith claims.