In Rahabi vs. Florida Insurance Guaranty Association, Inc. (click on case name for pdf version), the Fourth District Court of Appeal awarded attorney's fees against FIGA, based upon its denial "by affirmative action" of the insureds' claim. Fla. Stat. 631.70. Specifically, FIGA responded to the insureds' complaint, alleging a breach of contract, and asserted seven affirmative defenses which stated that the insureds' damages "[were] not caused by a covered loss." This was determined to be an affirmative action of denial.
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