FL H1269

Courts must award reasonable attorney fees to the prevailing party in civil claims for damages against insurers and surplus lines insurers, with the insured prevailing if the judgment exceeds the insurer's highest written settlement offer or if the insurer made no offer

"Judgment" is defined to include total damages, prejudgment interest on unpaid benefits, and reasonable attorney fees and costs incurred by the insured

Settlement offers are invalid if not kept open for at least 5 business days, made later than 45 days before trial, or contain nonmonetary terms beyond dismissal or covenant not to sue

Declaratory relief actions for insurance coverage disputes may award attorney fees to named insureds, omnibus insureds, or third-party beneficiaries when the insurer denied coverage or reserved the right to deny coverage in the future

The act applies to claims arising from insurance policies issued on or after July 1, 2026, and extends to surplus lines insurers, self-insurance funds, assessable mutual insurers, and fraternal benefit societies