CLAIMS GLOSSARY · FLORIDA & NEW JERSEY

Bad Faith and the Civil Remedy Notice (Florida)

Also called: civil remedy notice, CRN, insurer bad faith, 624.155, 60-day cure period

By Nelson Avila, Licensed Florida Public Adjuster (License G332385) · Florida Certified Contractor
Homeland Public Adjusters · Last reviewed: October 2026

Definition

Bad faith is an insurer’s failure to settle a claim when, under all the circumstances, it could and should have done so had it acted fairly and honestly toward its policyholder. In Florida the remedy is statutory: before suing for bad faith, the claimant must file a civil remedy notice (CRN) with the Department of Financial Services and the insurer specifying the violation (§624.155(3)), and the insurer then has 60 days to pay the damages or correct the violation; if it does, no bad-faith action lies. Mere negligence alone is not bad faith ((5)(a)), and the policyholder and their representatives have their own duty to act in good faith ((5)(b)).

What the civil remedy notice must contain

The statutory provision allegedly violated, including its specific language.
The facts and circumstances of the violation.
The name of any individual involved.
The relevant policy language, if any.
A statement that the notice is given to perfect the right to pursue the civil remedy.

It is filed on the Department’s form through the DFS civil remedy system, and the Department forwards it to the insurer’s designated email. The 60 days run from the insurer’s receipt. A vague notice (“failed to pay the claim”) can be challenged as insufficient; a specific one (the date the estimate was submitted, the provision ignored, the amount owed) starts a real clock.

What bad faith is not

A disagreement over the amount of a loss is a contract dispute, resolved by mediation, appraisal or a breach-of-contract suit. Bad faith is the carrier’s conduct in handling the claim: failing to investigate, failing to respond, failing to pay what it knew was owed, misrepresenting the policy. Florida courts generally require the underlying coverage and amount to be resolved in the policyholder’s favor before a bad-faith claim ripens, and 2023 amendments to §624.155 added that mere negligence is not bad faith and that the insured’s own bad faith can reduce damages. The CRN is nonetheless a practical tool on a stalled claim: it is a public filing that names the conduct, and many claims pay within the 60 days.

Timeline on a typical claim

Step	Rule	Who does it
Claim acknowledged / paid or denied	7 days to acknowledge; 60 days to pay or deny (§627.70131)	Insurer
Written basis for denial or underpayment	Required (§627.70131)	Insurer
Mediation / appraisal / supplemental claim	DFS mediation (§627.7015); policy appraisal clause; 18-month supplemental window (§627.70132)	Policyholder, with public adjuster
Civil remedy notice	Specific statutory violation; 60-day cure (§624.155(3))	Policyholder’s attorney, usually
Bad-faith action	After the cure period and after the coverage dispute is resolved	Attorney

New Jersey

New Jersey has no bad-faith statute for first-party property claims; the remedy is common-law bad faith, which requires showing the insurer had no reasonable basis for denying or delaying the claim and knew or recklessly disregarded that. Regulatory complaints go to the Department of Banking and Insurance under N.J.A.C. 11:2-17.7. A public adjuster is not an attorney; Homeland documents the handling of the claim and refers bad-faith questions to counsel in both states.

Frequently asked questions

Can a public adjuster file a civil remedy notice?

The notice is usually prepared and filed by an attorney, because it must cite the specific statutory violation and it starts the path to litigation. A public adjuster builds the record the notice relies on: the estimate, the submissions, the dates and the carrier’s responses.

What happens if the insurer pays within 60 days of the CRN?

If the damages are paid or the violation corrected within 60 days after the insurer receives the notice, no bad-faith action lies for that violation. Many stalled claims are paid inside that window.

Is a low estimate bad faith?

By itself, no. A low estimate is a disagreement over amount. Ignoring your estimate, refusing to inspect, missing statutory deadlines, or misrepresenting coverage are the kinds of conduct the statute reaches.

Related terms

Reservation of Rights

A reservation of rights (ROR) letter is written notice from the insurer that it is investigating or adjusting the claim while reserving the right to deny or limit coverage later based on specific…

Read the definition ›

Insurance Claim Mediation (Florida DFS Program)

Insurance claim mediation in Florida is a non-binding, state-run conference under §627.7015 where the policyholder and the insurer meet with a Department of Financial Services-approved mediator to…

Read the definition ›

Appraisal Clause and Umpire

The appraisal clause is a provision in most property policies that lets either the policyholder or the insurer demand appraisal when they disagree on the amount of a covered loss.

Read the definition ›

Supplemental Claim and Reopened Claim

A supplemental claim is a claim for additional loss or damage from the same peril the insurer has already adjusted, or for costs incurred while repairing under an open claim.

Read the definition ›

If this is your loss, call Homeland before you talk to the insurance company: Florida (305) 783-3777, New Jersey (732) 517-3777, 24 hours. A licensed public adjuster reviews the claim for free and calls you back right away. No Recovery, No Fee.

Sources

This article is for general information only and is not legal or insurance advice. Statutes, regulations and policy wording change, and how they apply depends on your own policy and the facts of your claim. Homeland Public Adjusters is a public adjusting firm, not a law firm.

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