State-Created Insurance Entity Exempt from Florida’s First-Party Bad Faith Statute

In Citizens Property Insurance Corp. v. Perdido Sun Condominium Ass’n, the Florida Supreme Court was asked to decide “whether the Florida Legislature intended … [for] a state-created entity that provided property insurance to be liable for statutory first-party bad faith claims as an exception to its statutory immunity from suit.” After prevailing in a breach of contract action against Citizens, Perdido Sun sued Citizens for bad faith under Florida’s Section 624.155(1). Citizens sought to dismiss the bad faith complaint based upon its statutory immunity. …

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