Civil Remedy Notice: What’s That?

A Civil Remedy Notice (“CRN”) is a legal document that a policyholder (or policyholder’s representative) files with the Florida Office of Insurance Regulation (“OIR”) to notify their insurance company of potential bad faith practices. This notice outlines the policyholder’s claim and demands a response from the insurer within 60 days. The purpose of a CRN is to provide the insurance company with a chance to correct their errors and act in good faith. If the insurer fails to do so, the policyholder may then have grounds for a bad faith lawsuit against the insurer.

Filing a CRN is crucial for policyholders who believe their insurance company is acting in bad faith, as it puts the insurer on notice of the policyholder’s concerns and gives them an opportunity to remedy the situation. Without a CRN, policyholders may be unable to sue for bad faith practices as an action for first party bad faith is not perfected until a CRN is filed and insurer fails to afford a cure within the requisite 60 days. However, it’s important to note that filing a CRN requires compliance with specific formalities to properly perfect bad faith rights. If these formalities are not properly met, the policyholder may lose their right to sue the insurer for bad faith practices.

Another important aspect of filing a CRN is the timing of the notice. While there is no strict deadline for filing a CRN, it is important to file the notice as soon as possible after bad faith practices have occurred. This is because the insurer has 60 days to respond to the CRN, and the policyholder cannot file a bad faith lawsuit until the insurer has had an opportunity to respond (and other statutory prerequisites are met). In addition, it’s important to note that the CRN is not a substitute for filing a formal lawsuit. Rather, it is a precursor to a bad faith lawsuit and provides the insurer with an opportunity to remedy their bad faith practices before litigation is necessary.

It’s crucial for policyholders to seek legal representation from an experienced attorney, such as Parrish Law, when filing a CRN. An attorney can assist in drafting the notice, ensuring that all required information is included, and can help ensure that the policyholder’s rights are protected throughout the process.

In summary, a Civil Remedy Notice is a legal document that policyholders can file with the Florida Office of Insurance Regulation to notify their insurer of potential bad faith practices. Filing a CRN is important because it puts the insurer on notice of the policyholder’s concerns and provides them with an opportunity to remedy the situation. However, compliance with specific formalities is required to properly perfect bad faith rights, making it important for policyholders to seek legal representation when filing a CRN. Finally, while there is no strict deadline for filing a CRN, it’s important to file the notice as soon as possible after bad faith practices have occurred to ensure that the policyholder’s rights are protected.

Link to Florida Civil Remedy Notice Statute: https://m.flsenate.gov/statutes/624.155