Florida’s legislature has been known as again for a particular session beginning December 12 concerning probably the most present insurance coverage disaster. Attorneys, contractors, public adjusters, and policyholders have been calling me, asking what will occur and what’s on the desk.
These are the varied matters which were raised or informed to me by numerous lobbyists and politicians:
- Assignment of Benefits (AOB)
- One-Way Attorney Fees
- Contractor Solicitation
- Public Adjuster Solicitation
- Bad Faith Lawsuits
Any legal guidelines handed will undoubtedly affect policyholders. The variety of insurance coverage firms declaring insolvency and the massive spike in insurance coverage charges has resulted in requires Florida politicians to do one thing in regards to the disaster. If they may solely legislate away hurricanes, the issues would go away. California and Colorado face the identical lower in obtainable insurance coverage due to an enormous improve in wildfires over the previous a number of years.
At the identical time, many Florida policyholders with important insurance coverage claims from Hurricane Ian and Nicole are studying what to anticipate by ready for truthful therapy from their insurance coverage carriers. Slow and low cost for a lot lower than the total quantity allegedly owed is the brand new regular for therapy by many carriers who rent outdoors disaster adjusters to regulate claims. A variety of unbiased adjusters who’ve give up inform me horror tales about how their subject estimates are wrongly diminished by desk adjusters and firm mandates.
So, what do insurance coverage firms need so they won’t be held accountable for his or her shabby therapy of policyholders and make their income a certainty? Do away with AOBs, set up loser pays lawyer charges or no lawyer charges, place extra caps on public adjuster charges, make new laws for unbiased restoration contractors whereas decreasing legal responsibility for managed restore contractors working beneath insurer pointers, make Florida a backstop for public supported low reinsurance charges, and put off dangerous religion accountability. This is the agenda of the insurance coverage foyer.
Over the previous a number of weeks, I’ve been working with a variety of policyholder attorneys and our agency’s lobbyists. Merlin Law Group lawyer Javier Delgado has made solutions concerning language for laws working with the Florida Justice Association. FAPIA’s lobbyist, Paul Handerhan, and others have been working behind the scenes. But what could occur is anyone’s guess.
The legal guidelines handed during the last three years have taken time to affect the insurance coverage market. One current legislation concerning constructing ordinances will considerably improve litigation as a result of some insurers are abusing the brand new legislation.
What will occur? I anticipate that we are going to be taught extra in regards to the backroom agreements later this week. You can at all times make decrease charges by altering legal guidelines, so insurers by no means should promptly and totally pay for losses—and stop them from being sued once they do. Stay tuned.
Thought For The Day
The world just isn’t going to be saved by laws.
—William Howard Taft