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Fortune Ins. Co. v. Pacheco

Citations: 695 So. 2d 394; 1997 Fla. App. LEXIS 4529; 1997 WL 209562Docket: 96-1039

Court: District Court of Appeal of Florida; April 30, 1997; Florida; State Appellate Court

Narrative Opinion Summary

The District Court of Appeal of Florida addressed a certified question concerning Personal Injury Protection (PIP) insurers' obligations under Florida Statute 627.736(4)(B). The central issue was whether an insurer could mandate an insured to provide all supporting medical records before the thirty-day payment period commences. The court held that such a requirement is impermissible, affirming that PIP benefits are due upon receiving reasonable proof of loss, with no statutory definition of what 'reasonable proof' entails. The court highlighted that insurers must verify claims within thirty days of receiving a benefits application and cannot extend this timeframe through additional policy requirements. In this case, the insured, having sustained injuries in an automobile accident, submitted a claim which the insurer delayed, arguing for the necessity of all medical records. The court ruled against this position, supporting the trial court's summary judgment in favor of the insured. Judge Cope, in a concurrence, noted that insurers may define 'reasonable proof of loss' but not unreasonably, as requiring complete records for all claims exceeds statutory mandates. The case reaffirms that insurers cannot impose conditions that nullify the statutory timeline for claim verification and payment.

Legal Issues Addressed

Insurer's Ability to Define 'Reasonable Proof of Loss'

Application: While insurers may define 'reasonable proof of loss,' such definitions must be reasonable and cannot require submission of all medical records for all claims.

Reasoning: Judge Cope, in a special concurrence, acknowledges that insurers may define 'reasonable proof of loss' within their policies but cautions that requiring complete medical records for all claims is unreasonable.

Obligations Under Florida Statute 627.736(4)(B)

Application: The court determined that the requirement for an insured to submit all supporting medical records before the thirty-day period for payment begins is not permissible.

Reasoning: The court definitively ruled that a PIP insurer cannot impose such a requirement.

Role of Signed Waivers in Obtaining Medical Records

Application: Claimants fulfill their obligation by signing waivers for insurers to directly obtain medical records, negating the need for pre-verification submission by claimants.

Reasoning: The obligation to supply medical records is satisfied by the claimant signing a waiver that allows the insurer to obtain the records directly from the provider.

Statutory Interpretation of 'Reasonable Proof of Loss'

Application: The statute does not define what constitutes 'reasonable proof,' and insurers cannot unilaterally impose definitions that delay statutory deadlines.

Reasoning: The statute does not specify what constitutes 'reasonable proof,' and Fortune's attempt to define it within its policy to include all medical records was deemed insufficient to delay the payment timeline.

Verification and Payment Timeline for Insurance Claims

Application: Insurers must verify claims within thirty days of receiving an application for benefits, without extending this timeframe through additional requirements.

Reasoning: Florida courts have consistently interpreted the statutory language regarding insurance claims as clear, establishing that insurers have a thirty-day period to verify claims after receiving an application for benefits, with no provisions for extending this timeframe.