Cannarella v. Allstate Indemnity Co.

District Court of Appeal of Florida

Cannarella v. Allstate Indemnity Co.

809 So. 2d 73, 2002 Fla. App. LEXIS 1438, 2002 WL 215800

CourtDistrict Court of Appeal of Florida

DecidedFebruary 13, 2002

DocketNo. 2D01-1105

StatusPublished

Cited by1 cases

This text of 809 So. 2d 73 (Cannarella v. Allstate Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cannarella v. Allstate Indemnity Co., 809 So. 2d 73, 2002 Fla. App. LEXIS 1438, 2002 WL 215800 (Fla. Ct. App. 2002).

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Opinion

BLUE, Chief Judge.

Alicia Cannarella appeals an adverse summary judgment on a putative class action lawsuit brought by insureds seeking late payment interest on medical expenses. We affirm because statutory interest on overdue personal injury protection (PIP) benefits accrues thirty days after an insurance company receives a written notice of claim.

Ms. Cannarella filed suit on behalf of herself and others who purchased automobile insurance and were allegedly not paid interest on PIP benefits by Allstate Indemnity Company during a specified period. Allstate filed a motion to dismiss or, in the alternative, a motion for summary judgment. Following a hearing, the trial court granted summary judgment for Allstate, finding that the interest it was required to pay on overdue PIP benefits was to be calculated from the thirty-first day.

Section 627.736(4), Florida Statutes (2000), provides that PIP benefits such as medical bills are due and payable when the loss “accrues” and upon the insurer’s receipt of reasonable proof of loss. Insurers are provided with a thirty-day period in order to verify whether the loss is payable or whether it is barred because of a policy exclusion and to determine whether the services provided and the amount of the bill were reasonable and necessary. See § 627.736(4).

The issue presented in this case has been addressed by the Third District. In United Automobile Insurance Co. v. Stat Technologies, Inc., 787 So.2d 920, 922 (Fla. 3d DCA 2001), the court determined that “the legislature intended that interest on overdue PIP payments does not commence until the loss accrues, which is 30 days after the insurance company receives notice of a fact of covered loss.” We agree with the holding of the Third District. Additional support for this determination is contained in United Automobile Insurance Co. v. Rodriguez, 808 So.2d 82, (Fla.2001). Although not directly addressing the issue of when overdue PIP benefits begin to accrue interest under section 627.736(4)(c), the supreme court did state that payment is overdue if not paid within thirty days and that all overdue payments shall bear interest.

[75]*75Accordingly, we affirm the trial court’s determination that interest begins to accrue when the PIP payments are overdue — on the thirty-first day.

GREEN and CASANUEVA, JJ., Concur.

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BLUE, Chief Judge.

Alicia Cannarella appeals an adverse summary judgment on a putative class action lawsuit brought by insureds seeking late payment interest on medical expenses. We affirm because statutory interest on overdue personal injury protection (PIP) benefits accrues thirty days after an insurance company receives a written notice of claim.

Ms. Cannarella filed suit on behalf of herself and others who purchased automobile insurance and were allegedly not paid interest on PIP benefits by Allstate Indemnity Company during a specified period. Allstate filed a motion to dismiss or, in the alternative, a motion for summary judgment. Following a hearing, the trial court granted summary judgment for Allstate, finding that the interest it was required to pay on overdue PIP benefits was to be calculated from the thirty-first day.

Section 627.736(4), Florida Statutes (2000), provides that PIP benefits such as medical bills are due and payable when the loss “accrues” and upon the insurer’s receipt of reasonable proof of loss. Insurers are provided with a thirty-day period in order to verify whether the loss is payable or whether it is barred because of a policy exclusion and to determine whether the services provided and the amount of the bill were reasonable and necessary. See § 627.736(4).

The issue presented in this case has been addressed by the Third District. In United Automobile Insurance Co. v. Stat Technologies, Inc., 787 So.2d 920, 922 (Fla. 3d DCA 2001), the court determined that “the legislature intended that interest on overdue PIP payments does not commence until the loss accrues, which is 30 days after the insurance company receives notice of a fact of covered loss.” We agree with the holding of the Third District. Additional support for this determination is contained in United Automobile Insurance Co. v. Rodriguez, 808 So.2d 82, (Fla.2001). Although not directly addressing the issue of when overdue PIP benefits begin to accrue interest under section 627.736(4)(c), the supreme court did state that payment is overdue if not paid within thirty days and that all overdue payments shall bear interest.

[75]*75Accordingly, we affirm the trial court’s determination that interest begins to accrue when the PIP payments are overdue — on the thirty-first day.

GREEN and CASANUEVA, JJ., Concur.

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809 So. 2d 73, 2002 Fla. App. LEXIS 1438, 2002 WL 215800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cannarella-v-allstate-indemnity-co-fladistctapp-2002.

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