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Bad-Faith Payouts Are Penalties, Not Insurance Benefits, Florida Supreme Court Says

Nov 6, 2023, 09:54 AM by Jim Sams

Published on November 3, 2023 • Insurance Journal

The Supreme Court said insurer payouts in bad-faith actions resemble penalties more than insurance “benefits” and cannot be treated as a collateral source under Section 768.76(1). That is the statute that allows insurance benefits to be reduced to prevent “double recovery” by claimants.