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Fifth District Court of Appeal rules that special SOL for actions against insolvent insurers and FIGA do not apply to actions filed against an insurer prior to insolvency

On February 10, 2017, in Morrison v. Homewise Preferred. Ins. Company, No. 5D15-4312, the 5th DCA ruled that statute of limitations provisions for actions against insolvent insurers do not apply to first party actions filed against an insurer prior to insolvency. Under Section 631.68 of the Florida Insurance Guaranty Act, a lawsuit against an insolvent Florida insurer covered under the Act or against FIGA, the Association that administers the Act, must be filed within year of the deadline for filing claims with the receiver of the insolvent insurer. The same basic rule is also applied in Fla. Stat. 95.11(5)(d). If a first-party suit has not been filed against the insurer before insolvency occurs, the insured is required to file his or her action against FIGA before the limitation periods in sections 95.11(5)(d) and 631.68 expires. The 5th DCA ruled that the trial court erred in denying the plaintiff's motion to amend her complaint against the insolvent insurer to include FIGA after the expiration of the period under sections 95.11(5)(d) and 631.68, because cases filed prior insolvency are not subject to these special limitations provisions.