Collateral Source Law / Subrogation Law

Chapter 768 Section 76 - 2021 Florida Statutes - The Florida Senate (flsenate.gov)

When a Jury reaches a verdict, they may award economic damages and non-economic damages.  Economic damages is money for past medical bills, future medical bills, loss of earnings in the past and in the future and any other monetary losses due to injury.  The jury can also ward non-economic damages which essentially is money for pain and suffering.  

With regards to the economic damages, after the jury awards a number for these economic damages, the judge, outside the presence of the jury, then reduces the amount awarded by any collateral sources that may have already paid for these losses.   This prevents a double award to the claimant.   A claimant cannot receive an award for  a certain medical bill from the jury and at the same time have  health insurance pay it.   However, there is no reduction for any collateral sources that have a right of subrogation or reimbursement.   Therefore, during the progress of your case,  a special letter is sent to any and all insurance companies that may have paid any money on the claim.  These insurance companies then  have 30 days to respond whether or not they have paid any money for the injuries suffered in the claim and, if so, a right of subrogation exists.  If they fail to respond, their claim for subrogation (reimbursement from the proceeds of your case) will be waived.  There are certain specific exceptions to this law with regards to certain ERISA Health Insurance policies and other certain insurance policies.  

A sample letter putting an insurance company on notice pursuant to F.S. 768.76 is below and a link to the statute is above.