The Southern District Court of Florida will have to determine whether an insurance company appropriately obtained a policy release from a condominium association involving a Hurricane Wilma claim in a case that is pending before it. Continuum Condominium Assoc., Inc. v. Mt. Hawley Ins. Co., No. 10-23550, 2011 WL 2214810 (S.D. Fla. June 2, 2011). It can be a questionable practice for insurers to demand that their policyholders sign a release during the adjustment of a claim before obtaining insurance benefits, particularly when the policyholder is not represented by counsel. The court’s analysis may balance public policy in favor of releases, which encourage parties to resolve their disputes, with the potential over-reaching or inappropriate means with which this release was obtained.
