Insurance fraud an issue Legislature needs to fix, Patronis says

TALLAHASSEE — Florida Chief Financial Officer Jimmy Patronis said he will press the Legislature to do more to rein in property insurance fraud in the aftermath of Hurricane Ian.

On a stop Wednesday in storm-ravaged Cape Coral, Patronis, who is running for re-election next month, said he wants the Legislature to crack down on "predatory" public adjusters, combat "Assignment of Benefits" abuse and establish a statewide prosecutor to specifically target property insurance fraud. He also wants $3 million to create an anti-fraud public education campaign.

Patronis said he wants to curb adjusters' "ability to take advantage of Floridians under financial duress."

He said "bad public adjusters [are] swarming [storm] impacted areas, soliciting, and trying to make a quick buck" in the aftermath of Hurricane Ian, one of the worst storms to strike Florida in history.

Under state law, public adjuster fees are limited to 20%, but when the governor declares a state of emergency for a natural disaster, like Ian, the fees are limited to 10% of the insurance claim payment.

Patronis also wants to eliminate the practice of "AOB" entirely, saying "bad actors use tools like AOBs to take advantage of Florida consumers in their most vulnerable moments, preying on our citizens for too long."

"Assignment of benefits," or "AOB" has been a contentious issue for years in the Legislature.

It is a practice in which homeowners sign over insurance claims to contractors, who then seek payments directly from insurance companies, often spawning a flood of lawsuits about claims and payments. Insurance companies blame the high cost of property insurance in Florida on abusive AOB practices.

Patronis said his office has two "Anti-Fraud Homeowner Squads" following up on thousands of leads and tips on fraud since Hurricane Ian made landfall on Sept. 28, pummeling the state with a crushing storm surge, obliterating wind speeds and torrential rainfall, leaving a swath of devastation from the southwestern coast across the I-4 corridor.

"In the wake of Hurricane Ian, we need to build on the efforts from the recent special [legislative] session and continue to reduce frivolous litigation, stop predatory public adjusters and tackle AOB abuse once and for all," he said.

Any legislation for Patronis' proposals would need a lawmaker to sponsor them in the Legislature.

Douglas Soule can be reached at DSoule@gannett.com.