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CONSUMER ALERT: Understand What You Are Signing During Tropical Storm Gordon Recovery

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Insurance Commissioner David Altmaier is encouraging Floridians who will be recovering from potential flood or wind damages to their homes and businesses from Tropical Storm Gordon to use caution when signing an Assignment of Benefits (AOB). Homeowners may be presented with a document to sign before repair work begins, which could contain what is known as an AOB, that transfers the insurance claims rights or benefits of your insurance policy to a third party.

Homeowners should contact their insurance agent, insurance company or CFO Patronis’ Insurance Consumer Helpline (1-877-693-5236) as soon as possible when making emergency repairs. After assessing the damage, restoration professionals may encourage homeowners to sign an AOB. By doing so, homeowners are giving the vendor the right to exclusively communicate with their insurance company, negotiate and endorse insurance claim payments and potentially file a lawsuit against the insurance company, with or without the homeowner’s knowledge. AOBs have been a cost driver leading to rising homeowners insurance rates across the state due to unnecessary litigation associated with certain AOB claims.

Insurance Commissioner David Altmaier stated, “As Floridians evaluate damages to their homes and property following Tropical Storm Gordon, it is vital they understand exactly what they are signing. AOB abuse has contributed to rising insurance rates and in some cases, unscrupulous contractors have left homeowners with unfinished repairs, liens against their homes and uncovered repair expenses. Homeowners are encouraged to review any documents they are asked to sign and use caution when signing an AOB. Consumers can always file a claim directly with their insurance company to maintain control of the rights and benefits provided by their insurance policy when resolving a claim.”

The following are a few tips to assist homeowners:

  • ​Read your insurance policy and know what your responsibilities are following a loss.
  • Contact your insurance company prior to signing any document that may contain an AOB.
  • If the homeowner elects to sign the AOB, read everything carefully and do not feel pressured to sign it. Signing an AOB is not your only option.
  • Beware of language that allows all proceeds of the claim to be made to anyone other than the homeowner or the homeowner’s mortgage company.
  • Do not sign the document if there are any blank spaces.

For more information, visit OIR’s “AOB Resources” webpage or CFO Patronis’ Division of Consumer Services “Assignment of Benefits” webpage.​ 

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about OIR, please visit our website or follow us on Twitter @FLOIR_comm and Facebook.

OIR Receives Annual Workers’ Compensation Rate Filing

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The Office of Insurance Regulation (OIR) has received the 2019 Florida workers’ compensation rate filing by the National Council on Compensation Insurance (NCCI), which proposes a statewide average premium decrease of 13.4%. The new rates would become effective January 1, 2019. [Read more…] about OIR Receives Annual Workers’ Compensation Rate Filing

Take Action Now to Review Your Insurance Policy, Secure Flood Insurance Coverage

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As the peak of the 2018 Atlantic Hurricane Season nears and Florida approaches the one-year mark since Hurricane Irma, Florida Insurance Commissioner David Altmaier and Chief Financial Officer (CFO) Jimmy Patronis are reminding consumers to take action now to review their insurance policies and secure flood insurance coverage. Typically, there is a 30-day waiting period before a flood policy takes effect, so it is vital to act before a named storm or significant weather event emerges. [Read more…] about Take Action Now to Review Your Insurance Policy, Secure Flood Insurance Coverage

OIR To Consumers: Take Action Now to Secure Flood Insurance Coverage

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As the State of Florida continues to brace for significant flooding throughout the week, Florida Insurance Commissioner David Altmaier is encouraging consumers to take action now to secure flood insurance coverage. For a list of flood insurance writers in Florida, visit this link.

Chief Financial Officer Jimmy Patronis said, “It is never too early to prepare for a tropical weather event. With significant rain forecasted and flooding on the horizon, Floridians need to review their current insurance policies and fully understand their coverages and exclusions so they can prepare accordingly. Now is the time to take action.”

Commissioner Altmaier said, “Flooding can happen any time of year, but the chances increase significantly with hurricanes and tropical storms. As we know from last year’s hurricane season, these systems can bring storm surge and increased rainfall amounts to our state. Having flood insurance in place is critical for homeowners and businesses, and helps our state’s response and recovery efforts.”

A basic homeowners’ insurance policy does not provide coverage for flooding. This coverage must be purchased separately through a private insurance company or the federally-administered National Flood Insurance Program (NFIP). Florida’s private flood insurance market is growing and there are now 26 insurers offering primary or excess flood insurance coverage. This coverage is usually offered at prices similar to or lower than those of the NFIP, providing more consumer choice and an alternative to the federal program.

Flood insurance coverage can often be purchased directly from a consumer’s existing insurance agent or company. Typically, there is a 30-day waiting period before an NFIP policy takes effect, so it is vital to act before a named storm or other event emerges. For more information about ways to prepare for hurricane season and resources to a variety of fact sheets and tips, please visit OIR’s Hurricane Season Resources site.

Office of Insurance Regulation staff member deploying to Puerto Rico to provide assistance

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Florida Insurance Commissioner David Altmaier announced today that staff from the Office of Insurance Regulation (OIR) will travel to Puerto Rico to assist those impacted by Hurricane Maria. In partnership with the National Association of Insurance Commissioners (NAIC), an OIR team member will deploy on May 12, 2018 to assist families and individuals with claims and other insurance issues.

Governor Scott said, “Since Hurricane Maria, Florida has provided steadfast support to our neighbors in Puerto Rico and I am proud to continue this aid by sharing an insurance expert from Florida to provide claims assistance to homeowners and business owners as they work to rebuild their lives. I am proud of the work Florida has done to help families from Puerto Rico and we will continue to do all we can to make sure they have the resources needed to get back on their feet.”

CFO Jimmy Patronis said, “Access to insurance help and resources is critical for consumers and businesses in Puerto Rico impacted by Hurricane Maria. As we gear up for the 2018 Hurricane Season, it’s important that we do all we can to provide resources to the people of Puerto Rico to help recover and now prepare ahead of June 1. My office’s bi-lingual insurance experts stand ready to assist with any consumer concerns.”

Florida Insurance Commissioner David Altmaier said, “OIR’s mission is to protect insurance consumers and cultivate a stable insurance marketplace in Florida, and we’ve worked closely with Governor Scott, CFO Patronis, Commissioner Putnam, and Attorney General Bondi to carry out this mission before, during, and after storms. I am proud that our team will now have the opportunity to extend our efforts by providing direct assistance in Puerto Rico.”

Julie McPeak, Tennessee Department of Commerce and Insurance Commissioner and National Association of Insurance Commissioners President, said, “Having OIR staff available to assist with policyholders with claims processing will be an invaluable service, and the NAIC is thrilled to partner with Governor Scott and Commissioner Altmaier on this initiative.”

The National Association of Insurance Commissioners will provide financial support for travel costs associated with the initiative.

OIR Approves Workers’ Comp Insurance Rate Decrease

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The Florida Office of Insurance Regulation announced today that it has approved a rate decrease for workers’ compensation insurance in Florida. The 1.8% decrease was filed by the National Council on Compensation Insurance (NCCI) in a law-only filing resulting from the effects of the Federal Tax Cuts and Jobs Act.

Florida Chief Financial Officer Jimmy Patronis said, “Reducing insurance costs and financial burdens is great news for our business community. Businesses in Florida support our local communities, create jobs, and help our state’s economy. This rate reduction is a much needed insurance cost savings for Florida businesses.”

Florida Department of Agriculture and Consumer Services Commissioner Adam H. Putnam said, “Reducing the cost of business spurs job growth, and this rate reduction is exactly what Florida needs to continue to create the business climate that will help our economy thrive.”

Florida Insurance Commissioner David Altmaier said, “NCCI has demonstrated through its rate filing that this decrease is an actuarially-sound response to the savings workers’ compensation insurers have realized as a result of recent federal legislation. The data indicates that passing the savings along to businesses through a rate decrease is an appropriate response at this time.”

The overall rate level change is a 1.8% decrease due to a change in the Profit and Contingency (P&C) Factor to 0.5% from 1.85%. NCCI’s analysis to determine the revised P&C reflects provisions from the recently-passed Tax Cuts and Jobs Act, including top corporate tax rate decreases, changes to reserve discount factors, and other factors. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of June 1, 2018.

Consumer Alert from Florida Office of Insurance Regulation: Cryptocurrency

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Initial Coin Offerings (ICOs) and cryptocurrency-related investment products have been identified as emerging investor threats for 2018. Cryptocurrencies are a medium of exchange that are created and stored electronically in the blockchain, a distributed public database that keeps a permanent record of digital transactions. Common cryptocurrencies include Bitcoin, Ethereum and Litecoin. Unlike traditional currency, these alternatives have no physical form and typically are not backed by tangible assets. They are not insured or controlled by a central bank or other governmental authority, cannot always be exchanged for other commodities, and are subject to little or no regulation. The Florida Office of Financial Regulation encourages Floridians to be very cautious of investments involving cryptocurrency.
Some common concerns investors should consider before investing in any offering containing cryptocurrency include:
  • Cryptocurrency is subject to minimal regulatory oversight, susceptible to cybersecurity breaches or hacks, and there may be no recourse should the cryptocurrency disappear.
  • Cryptocurrency accounts are not insured by the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits up to $250,000.
  • The high volatility of cryptocurrency investments makes them unsuitable for most investors.
  • Investors in cryptocurrency are highly reliant upon unregulated companies, including some that may lack appropriate internal controls and may be more susceptible to fraud and theft than regulated financial institutions.
  • Investors will have to rely upon the strength of their own computer security systems, as well as security systems provided by third parties, to protect purchased cryptocurrencies from theft.
Check out this video to help you understand the risks associated with ICOs and cryptocurrencies.
If you feel that you may be a victim of investment fraud or to report suspicious activity, please file a complaint with the Florida Office of Financial Regulation online, flofr.com, or call (850) 487-9687. 

Office and Cabinet Applaud the Passage of HB 7015 by House of Representatives

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Office Releases Results of AOB Data Call

The Florida Office of Insurance Regulation (Office) and Cabinet applaud the actions of the Florida House of Representatives in passing legislation today to specifically address assignment of benefits (AOB) reform. House Bill 7015, which was sponsored by the Judiciary Committee, Representative Jay Trumbull, and Representative James Grant, and co-sponsored by Representative Jim Boyd, provides consumer protections and strengthens provisions in Florida law to reduce unnecessary litigation associated with AOBs that is causing an increase in homeowners insurance costs across the state.
Today, the Office released the “2017 Review of Assignment of Benefits (AOB) Data Call Report,” which provides aggregated results of information received by the top 25 personal residential insurance companies encompassing more than 85% of the Florida market and writing Homeowners and Dwelling Fire policies from January 1, 2015 – June 30, 2017. The findings of this report show a larger progression in the geographic spread, frequency, and average severity of water loss claims across the state; however, this occurred in half the time it took to develop when compared to the nearly six-year analysis of the February 2016 report on this same issue. Since 2015, results indicate the frequency of water claims has risen by 44% with all regions of the state experiencing double-digit increases. Likewise, the average severity of water claims has increased by 18%. The total combined impact of these changes reflect an average 42.1% annual increase in water losses, which is nearly triple the 14.2% average annual increase shown in the previous report.
“I am thankful for the support of the Cabinet, bill sponsors, and all House members who have been working hard to address AOB reform,” said Insurance Commissioner David Altmaier. “The results of my Office’s newest report is a clear sign that Florida is seeing an aggressive rise in the number of water loss claims associated with an AOB and this impact is being felt statewide. Without a legislative remedy, this problem will lead to an increase in homeowners insurance premiums and lack of consumer choice as insurers stop writing or renewing policies in areas with high water losses. I look forward to working with the Florida Legislature and other stakeholders on a proactive solution to address this issue in the 2018 Session.”
Governor Rick Scott said, “I appreciate the Florida House for passing meaningful reforms that will help Florida families. I look forward to continue seeing this important issue addressed throughout the legislative session.”
“House Bill 7015 is the multi-layered legislative approach our state needs to address the rapid climb in AOB water loss claims, and I applaud Rep. Jay Trumbull and the Florida House for passing this good bill today,” said Chief Financial Officer Jimmy Patronis. “The data paints a bleak picture for Florida’s Insurance market. With skyrocketing homeowners insurance costs, consumers are on the losing end.“
“As Attorney General, consumer protection is one of my top priorities, and I applaud the Office of Insurance Regulation’s efforts to protect policyholders. This legislation aims to protect homeowners who are simply trying to repair their homes after a disaster,” stated Attorney General Pam Bondi.
A copy of the report can be accessed here. For additional information, please visit the Office’s “AOB Resources” webpage.

Florida Announces Two Multi-Agency, Multi-State Life Claim Settlement Agreements Totaling $600,000

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TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office), Florida Department of Financial Services, and the Florida Office of the Attorney General today announced national life claim settlement agreements have been signed with State Farm for $250,000 and Aflac for $350,000.

These settlement agreements facilitate the use of the Social Security Administration’s Death Master File to determine if the insured, annuitant, or account holder is indicated.

In its sixth year, this multi-state national effort has resulted in the successful return of more than $8.7 billion in unknown or lost policy proceeds to beneficiaries directly by the companies and over $3.25 billion delivered to the states’ unclaimed property programs, which continue efforts to locate and pay beneficiaries.

To date, state insurance regulators have either reached settlements or concluded the investigation of 30 of the top 40 companies constituting over 81% of the total market. Efforts continue to be focused on the examination of the remaining 10 insurers.

State Farm and Aflac have agreed to compare all company records against the DMF to determine whether there are unclaimed death benefits, search for those beneficiaries, and otherwise remit unclaimed proceeds to the appropriate state authority. Florida’s allocation of the collective multi-state settlement payments by the two companies is $41,759, which covers the costs of the investigations and future compliance monitoring.

For more information, visit the Office’s “Life Claim Settlement Practices” webpage. To search or submit a request for unclaimed property, visit www.FLTreasureHunt.org, or call 1-88-VALUABLE or (850) 413-3089.

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm and Facebook. 

Office Approves a 9.5% Decrease to Florida’s Workers’ Compensation Insurance Rates

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Florida Insurance Commissioner David Altmaier has issued a Final Order granting approval to the National Council on Compensation Insurance (NCCI) for a statewide overall rate level decrease of 9.5% and premium level decrease of 9.8%. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of January 1, 2018.
“I am pleased that today’s approval of NCCI’s rate filing will translate into a decrease in workers’ compensation rates for many Florida employers,” stated Commissioner Altmaier. “The Office will continue to monitor the marketplace and support reforms that provide additional cost savings for Florida’s businesses.”
“Florida’s job creators will no doubt appreciate this significant cost savings, a step that will support our state’s growing economy,” said Florida’s Chief Financial Officer Jimmy Patronis. “I’m pleased to see the cost of business going down, and as the Legislature looks at our workers’ compensation system, I will be working with them on proposals to lock in these lowering rates.”
NCCI received this approval after submitting an amended rate filing to the Office on November 7, 2017, which met the stipulations of an Order issued by the Commissioner on October 31, 2017.
For more information about the NCCI public hearing and rate filing, visit the Office’s “NCCI Public Rate Hearing” webpage.