February 20, 2026
How three states are reshaping bad faith exposure
This article was written with the assistance of AI and edited by Angela Sabarese.
In a recent CLM webinar, a panel of experts discussed major statutory reforms addressing time-limited demands in bad faith insurance cases across three historically problematic jurisdictions. The panel featured Shawn Bingham, Freeman, Mathis and Gary; Dotti DiFiore, Quintairos, Prieto, Wood & Boyer; Philip Sumner, Baker Sterchi Cowden & Rice; and Kim Mobley, The General Insurance.
Time-Limited Demand Reforms
The discussion centered on how Florida, Georgia, and Missouri have reformed their approaches to time-limited demands—situations where plaintiffs serve settlement offers with strict terms that insurers must meet perfectly or face bad faith exposure. Each state's journey revealed different degrees of success in addressing what had become an increasingly abusive practice.
Florida
Florida emerged as the reform success story. DiFiore described the pre-2023 environment using a vivid metaphor: "I once did a PowerPoint presentation on trying to accept demands that was based on an Indiana Jones motif where he has to run through the quest of the rolling ball...because that's what it was like to try and accept a demand in Florida." The 2023 reforms created a safe harbor provision offering immunity from bad faith if insurers tender policy limits within 90 days and eliminated one-way attorney fees. The impact was significant: "Progressive literally sent money back to their policyholders this year," DiFiore noted, attributing the success largely to fee elimination.
Georgia
Georgia's 2024 reforms require all settlement offers to be bilateral contracts and provide similar safe harbor protections, though Bingham expressed concern that many insurers have not yet taken advantage of these protections.
Missouri
Missouri's reforms have been less effective. Despite 2017 statutory changes, the plaintiffs' bar simply circumvented the time-limited demand statute by making non-time-limited demands. Mobley characterized Missouri as "still the Wild, Wild West," suggesting further legislative reform is needed to match Florida and Georgia's success.