Florida lawmakers OK insurance changes with no help for homeowners
Having completed its agenda for the special session, the Legislature adjourned Wednesday afternoon.
The bills go next to Gov.
“What this bill signifies to me is hope, hope and a plan to make sure we are doing everything we can to repair a broken property insurance market,” said Rep.
The session was called after
Republican lawmakers said the insurance bill builds on previous changes to stabilize the market, including those approved in a special session in May that pruned back lawyer fees and provided a
But even
“In the bill, we all see some of the problems, but there are some things we are not going to fix,” Rep.
The latest bill pumps another
It also targeted trial lawyers and roofers that have filed lawsuits on behalf of homeowners, without addressing companies that refuse or delay paying legitimate claims. It eliminates one-way lawyers’ fees and “assignment of benefits” — a law that allows homeowners to have their insurance benefits paid directly to their contractors.
It also forces more people out of Citizens, the state-backed insurance company of last resort, which has seen its policyholders more than double to 1.1 million in the last two years.
And it allocates
Proponents say the changes will stabilize the marketplace and mitigate what they contend is the major cause of rising insurance rates in
“The people of
Opponents also argued that the bill is restricting access to the courts by adding unnecessary hurdles to filing bad faith lawsuits and forcing them to pay their attorneys out of their settlements instead of separately.
The measure also doesn’t address the fraud and bad faith among insurance companies that fail to pay out claims on time as state law requires, they said.
“We offered you alternatives. We offered you amendments, we offered you our Triple-A plan for affordability, accountability, and it was denied,” said Rep.
Reinsurance, what insurance companies buy to protect themselves from the huge payouts that come from catastrophic events such as hurricanes, is a bigger driver of rising costs, and accounts for 49% of the premiums Floridians currently pay.
“The only way our constituents back home are going to see any rate savings as required by law is when insurance companies save money on reinsurance,” said Rep.
©2022 Orlando Sentinel. Visit orlandosentinel.com. Distributed by Tribune Content Agency, LLC.
Fed set to extend inflation fight with 7th rate hike of 2022
National Online Life Insurance Program for PK-12 Public School Employees Offered by Wisconsin's WEA Member Benefits
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News