Section 626.7015(4), F.S., authorizes the Department to adopt special rules implementing a mediation program that would be applicable in cases of an emergency within the State. This emergency rule is necessitated by the extensive property destruction throughout the State of Florida caused by Hurricanes Dennis, Katrina, Rita, and Wilma. The insured loss estimates from Hurricane Wilma alone are $8 billion to $12 billion. The State of Florida sustained $468 million in insured losses from Hurricane Katrina when it struck the Miami area and one billion dollars in insured losses from Hurricane Dennis when it struck the Panhandle. Hurricane Rita grazed the Florida Keys causing $23 million in insured losses. The hurricane damage has resulted in the displacement of thousands of people from their homes which were rendered unsuitable for use and habitation, the destruction or loss of personal property, the closing of businesses, and the loss of employment. The people of the State of Florida are still recovering from the impact of the four hurricanes and tropical storms that struck in 2004 and caused billions in dollars of damages. The Governor has found that destruction caused by the 2004 and 2005 hurricanes threaten the State with a major disaster and declared that a state of emergency exists in the State of Florida by Executive Order No. 05-219. Insurers have currently reported over 500,000 property insurance claims as a result of the 2005 hurricanes. A significant number of these claims remain unresolved throughout the State and as a result, thousands of homes remain in a state of disrepair or are uninhabitable. The failure by insurers to timely process, settle and pay these claims delays the insured’s ability to repair damaged structures or replace lost property. Due to the substantial number of new insurance claims that have been or will be filed as a result of the extensive destruction caused by the recent hurricanes, an emergency rule is needed to immediately establish a mediation program allowing these insurance claims to be settled in a fair and timely manner and in an informal setting. A prompt settlement of these claims will allow insureds to receive insurance money and begin repairs to their homes and other personal property or to replace property that was damaged or lost as a result of the hurricanes. Insureds may also be eligible to recover money for temporary living expenses or emergency repairs. The Department previously adopted a rule establishing a property mediation program that only applied to claims resulting from the 2004 hurricanes. Four mediation centers were set up in hurricane hit areas and more than 11,000 mediation conferences took place. The mediation program had a success rate of 92%. This new emergency rule will allow insureds’ with property damage claims as a result of the 2005 hurricanes to participate in the mediation program. REASONS FOR CONCLUDING THAT THE PROCEDURE USED IS FAIR UNDER THE CIRCUMSTANCES: The Department concludes that an emergency rule is the most fair and expeditious process to notify the public and the insurance industry of the mediation program. An emergency rule will allow the Department to immediately implement a mediation program allowing for a prompt resolution of disputed claims as a result of the extensive damage caused by the recent hurricanes. The Department will initiate regular rulemaking on this same subject matter shortly. The filing of notice of proposed rule development and notice of proposed rulemaking in the near future will adequately protect the rights of substantially affected persons.