Consumer Protection Coalition praises Gov. DeSantis for targeting ‘meritless litigation’
For AFP, transparency is the key word for property insurance reform.

Property Insurance
CPC also lauded Sen. Jim Boyd, Rep. Jay Trumbull and Insurance Commissioner David Altmaier.

A group dedicated to curbing insurance litigation praised Gov. Ron DeSantis on Tuesday for calling on lawmakers to rein in “attorney fee jackpots” in property insurance lawsuits.

The Consumer Protection Coalition, which is spearheaded by the Florida Chamber of Commerce, also praised the Governor for ordering a Special Session to address the property insurance crisis, which has been marked by rising premiums and several insurers either exiting the Florida market or entering receivership.

The CPC and many of its member organizations blame the market’s tailspin on a glut of lawsuits. The instability is complex, however, Florida does have a high volume of property insurance lawsuits — a report from the state’s Office of Insurance Regulation found that Florida accounted for less than a tenth of homeowners’ insurance claims but more than three-quarters of all homeowners’ litigation in the United States.

“Recognizing the severity of the crisis, Governor DeSantis repeatedly called on the Legislature to take up and pass significant property insurance reforms during the 2022 Regular Session. When those reforms failed to materialize, Governor DeSantis once again turned words into action, unilaterally calling the Legislature back into Special Session and driving consensus on a substantial agenda,” said William Large, President of the Florida Justice Reform Institute, and a member of the CPC. “The proposed property insurance reform legislation will go a long way towards getting to the heart of escalating rates and limited coverage — lawsuit abuse.”

The CPC also praised Sen. Jim Boyd and Rep. Jay Trumbull, both Republicans, for their role in developing the property insurance package under consideration during the Special Session and Insurance Commissioner David Altmaier “for providing critical marketplace data and counsel for legislators to act upon.”

The organization specifically highlighted provisions in the reform package that would eliminate attorney fees if a policy is signed over to a third party — a practice known as “Assignment of Benefits” (AOB). CPC also praised provisions that would limit contingency fee multipliers to “rare and exceptional cases” and require trial attorneys to prove an insurer breached its  contract with the policyholder as a condition for prevailing in a bad faith lawsuit.

“Litigation drives losses and losses drive rate increases. With Florida accounting for 79% of the nation’s homeowners’ insurance lawsuits over claims filed while making up only 8% of the nation’s homeowners’ insurance claims, it is clear Florida has a litigation problem that is costing Florida ratepayers when they can least afford it,” a CPC news release said.

“The necessary lawsuit abuse reforms put forth by Senator Boyd and Representative Trumbull in SB 2D/HB 1D will help build the infrastructure for a stabler and more competitive insurance market. We thank Governor Ron DeSantis for his leadership in calling this Special Session to stand up for consumers and tackle the root causes driving up property insurance rates.”

Drew Wilson

Drew Wilson covers legislative campaigns and fundraising for Florida Politics. He is a former editor at The Independent Florida Alligator and business correspondent at The Hollywood Reporter. Wilson, a University of Florida alumnus, covered the state economy and Legislature for LobbyTools and The Florida Current prior to joining Florida Politics.


2 comments

  • Bill

    May 24, 2022 at 1:19 pm

    It’s about time these ambulance chasers were shut down. Makes me wonder why the Associated Industries of Florida and the Florida Chamber of Commerce suddenly backed down from their threats to hold Senators and the Governor hostage as they did in regular session when this originally came up. I guess there was some horse trading with Adam Basford behind the scenes.

  • Greg

    May 27, 2022 at 11:29 am

    What comes around goes around people.

    If the homeowner signed over to a third party unknowingly to the average person, consider suing that lawyer, if they are part of the scheme. Then any carrier that writes LPLI insurance may want to consider double or tripling the firms insurance premiums. After all LPLI carriers are simply insuring their second homes and boats.

Comments are closed.


#FlaPol

Florida Politics is a statewide, new media platform covering campaigns, elections, government, policy, and lobbying in Florida. This platform and all of its content are owned by Extensive Enterprises Media.

Publisher: Peter Schorsch @PeterSchorschFL

Contributors & reporters: Phil Ammann, Jason Delgado, Renzo Downey, Daniel Figueroa, A.G. Gancarski, Anne Geggis, Kelly Hayes, Joe Henderson, Ryan Nicol, Jacob Ogles, Scott Powers, Gray Rohrer, Jesse Scheckner, Christine Sexton, Andrew Wilson, Mike Wright, and Tristan Wood.

Email: [email protected]
Twitter: @PeterSchorschFL
Phone: (727) 642-3162
Address: 204 37th Avenue North #182
St. Petersburg, Florida 33704




Sign up for Sunburn


Categories