What is a Civil Remedy Notice (CRN) and what purpose it serves in a homeowner’s insurance policy?

by Aug 13, 2020Uncategorized

While living as a homeowner in Florida, it’s wholly possible that you file a claim with your insurance provider after suffering any kind of loss and that the insurer refuses to pay what owed under your home insurance policy… So what you are left with?

Civil Remedy Notice (CRN) is an efficacious tool that the Florida Department of Financial Services offers to Floridians to eradicate the discrepancies between the insurer and insured before filling a statutory cause of action for a bad faith claim. This Civil Remedy Notice serves as a notice to the insurer that a bad faith claim is impending. Bad faith does occur in every insurance but under the CRN Statute, the policyholder may seek compensation of damages from the insurer in:

  • Non-provision of good faith attempts to settle claims that could be settled
  • Refusal of claims with any explanation
  • Usage of deceptive actions
  • Fail to back unearned premiums after the cancellation of the policy

Florida Department of Financial Services further explains it as:

“The Civil Remedy Notice is proposed for use by parties who are filing statutory suit against an insurer when a party feels that they have been damaged by specific acts of the insurer. The section 624.155 of Florida Statutes requires a party to file Notice with both Department of Financial Services and insurer at least 60 days before bringing any cause of action against insurer while DFS does not involve in any pre-suit negotiations or communication.”

Information to contain in CRN: 

  • The statutory provision, including the specific language of the statute, which the authorized insurer allegedly violated. 
  • The facts and circumstances giving rise to the violation. 
  • The name of any individual involved in the violation. 
  • Reference to specific policy language that is relevant to the violation, if any. 

After filling of CRN, the insurer has 60 days to respond or fix the violation if the insurer does not respond within that limit, the contents of CRN are taken as true and will further be proceeded under Fla. Stat. 768.73.