Florida house to three-quarters of U.S. property insurance coverage lawsuits

3 mins read

A brand new report from the state’s Workplace of Insurance coverage Regulation that discovered Florida accounted for over 76% of all owners’ litigation in the USA in 2019.

The info comes from an OIR evaluation of the Nationwide Affiliation of Insurance coverage Commissioners Market Conduct Annual Assertion (MCAS) Knowledge Name, overlaying 2016-2019.  Whereas Florida exceeded the remainder of the nation in owners’ insurance coverage litigation, the state accounted for less than 8% of house owners’ insurance coverage claims nationwide.

In an April 2 letter addressed to Home Commerce Committee Chair Blaise Igoglia, Insurance coverage Commissioner David Altmaier mentioned the pattern shouldn’t be new. Of all owners’ insurance coverage litigation within the U.S., 64% opened in Florida in 2016, 68% in 2017, and 80% in 2018.

Property insurance coverage reform has been one of many Legislative Session’s most contentious matters. Insurance coverage price will increase, protection restrictions, insurers leaving the market, and insurance policies quickly funneling again into the state-backed Residents Property Insurance coverage Corp. have all garnered consideration.

The controversy over finest tackle rising property insurance coverage charges in Florida hinges on arguments over the quantity of litigation occurring.

Proponents of litigation reform say curbing frivolous lawsuits and lawyer’s charges are essential to halt client price will increase. Opponents say that insurers must be higher at paying claims and that the Senate’s reform invoice (SB 76) would limit client entry to the courts.

Altmaier’s letter outlined a number of proposals for legislative consideration, together with reforming the state’s one-way lawyer’s payment statute to take away incentives for illegitimate litigation, adopting a “uncommon and distinctive” framework for lawyer contingency payment multipliers, eradicating incentives for illegitimate roof alternative claims, and emulating Texas’ 2017 insurance coverage reform legislation that requires claimants to present insurers 61 days-notice previous to submitting go well with and creates a system for calculating lawyer’s charges.

“These options might considerably cut back the litigation related to claims, bringing extra certainty into Florida’s property insurance coverage market. In the end it will present extra stability out there and extra price stability for shoppers,” Altmaier wrote.

Final week, the Senate handed SB 76 by Bradenton Republican Sen. Jim Boyd. In the meantime, HB 305 by Rep. Bob Rommel, Naples a Republican, has one committee listening to left earlier than it reaches the Home ground.

OIR Letter by Andrew Wilson on Scribd


Put up Views:
16

Leave a Reply

Previous Story

One Inexperienced Change: grow to be extra vitality environment friendly

Next Story

Mortgage forbearances hit lowest degree in a 12 months