State Farm Mut. Auto. Ins. Co. v. Sternberg
| Decision Date | 26 September 1997 |
| Docket Number | No. 95-2217,95-2217 |
| Citation | 699 So.2d 345 |
| Parties | 22 Fla. L. Weekly D2325 STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant, v. Clara STERNBERG, etc., Appellee. |
| Court | Florida District Court of Appeals |
We grant the appellant's and appellees' motions for rehearing, withdraw our opinion in this case filed February 14, 1997, and substitute therefor the following:
Sternberg, the insured, was in a car accident and applied to her insurer, State Farm, for UM benefits. State Farm denied benefits because Sternberg did not, as required in the policy, report the accident to police within 24 hours or to State Farm within 30 days. Sternberg contended that, notwithstanding her failure to report, she was entitled to coverage because State Farm did not comply with the claims administration statute which requires the insurer to notify the insured of a "coverage defense" within certain time limits. State Farm contended that the claims administration statute applies to liability insurance, but not to UM insurance. The trial court denied State Farm's motion for summary judgment based on its decision that the claims administration statute applies to a UM insurance provider, and eventually entered final judgment in Sternberg's favor.
We hold that section 627.426, Florida Statutes, does not apply to cases in which an insured is making a claim for uninsured motorists benefits. By its terms the statute applies to cases involving liability insurance:
627.426. Claims administration
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(2) A liability insurer shall not be permitted to deny coverage based on a particular coverage defense unless:
(a) Within 30 days after the liability insurer knew or should have known of the coverage defense, written notice of reservation of rights to assert a coverage defense is given to the named insured by registered or certified mail sent to the last known address of the insured or by hand delivery; and
(b) Within 60 days of compliance with paragraph (a) or receipt of a summons and complaint naming the insured as a defendant, whichever is later, but in no case later than 30 days before trial, the insurer:
1. Gives written notice to the named insured by registered or certified mail of its refusal to defend the insured;
2....
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Schultz v. Amica Mut. Ins. Co.
...do not reach the issue of whether Amica was a "liability insurer" within the meaning of the statute. See State Farm Mut. Auto. Ins. Co. v. Sternberg, 699 So.2d 345 (Fla. 5th DCA 1997). 2. The Schultzes rely on North v. Culmer, 193 So.2d 701, 704 (Fla. 4th DCA 1967), for the proposition that......
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