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Personal Insurance Federation of Florida

PIFF: Broxson AOB Amendment will Stop the “Looting by Lawsuit” in Florida

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The Personal Insurance Federation of Florida (PIFF) today issued the following statement applauding Senator Doug Broxson (R-Pensacola), for filing an amendment to Senate Bill 1168 that will resolve the problem of assignment of benefits abuse (AOB), which is driving up homeowners’ insurance rates for many Floridians. The Senate Banking and Insurance Committee will have the opportunity to vote on the bill this afternoon.
Statement from Michael Carlson, president of the Personal Insurance Federation of Florida (PIFF):
“This amendment is a silver bullet with strong consumer protections that will cut down on frivolous lawsuits and finally give relief to thousands of Floridians facing increasing premiums.
“We hope Chair Flores and the members of the committee give this amendment a fair hearing based on the mountains of evidence on this problem.
“As the latest Wall Street Journal editorial pointed out just this week, Florida can’t continue to prosper if it becomes a mecca for ‘looting by lawsuit.’ Republican leaders in the Senate have an opportunity to prove their commitment to constituents rather than caving to special interests.” 
Background

  • Senator Broxson’s amendment includes the provisions of Senate Bill 62, filed by Senator Dorothy Hukill (R-Port Orange), which is the product of years of efforts by stakeholders.
  • The key provisions of the bill were drafted by the Office of Insurance Regulation and Citizens Property Insurance Corporation, and are aimed at protecting consumers.
  • The amendment will require that in lawsuits between assignees and insurers, attorney fees will only be awarded pursuant to current laws permitting offers of settlement and penalizing frivolous claims or defenses.
  • It will include several strong consumer protections, such as requiring written, itemized estimates; prohibiting onerous cancellation and check processing fees; and protecting homeowners from claims by vendors when there is an assignment agreement in place.
  • Finally, the amendment includes a requirement that all property insurers make a full rate filing with the Office of Insurance Regulation within the year after the law becomes effective, to ensure that insurers are incorporating adjusted loss trends into the rate.

PIFF is a member of the Consumer Protection Coalition, which is a grassroots organization whose goal is to educate policymakers on the problem of AOB abuse and to find sensible, pro-consumer solutions that will reduce costs. Learn more about the AOB problem and the Coalition at fightfraud.today.

PIFF: “Florida Senate AOB proposal a giant step backward"

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The Personal Insurance Federation of Florida (PIFF) today issued the following statement on Senate Bill 1168, relating to insurance, filed by Senator Greg Steube (R-Sarasota). The bill is scheduled to be heard in the Senate Banking and Insurance committee this afternoon.
Michael Carlson, president of the Personal Insurance Federation of Florida (PIFF):
“After five years of producing strong evidence of a litigation-for-profit scheme driving up insurance rates, particularly in South Florida, the Florida Senate has offered up a giant step backward.
“This piece of legislation reflects the Senate’s indifference to the problem, or its gross misunderstanding of the core issues affecting homeowners.
“While the bill includes some very limited consumer protections, the overall effect of this legislation will be increased rates, as insurers avoid the risk of litigation. This will send a strong signal to the insurance marketplace that Florida is closed for business. Nothing could be worse for the average consumer.
“If the Senate bill advances, I hope senators will take a fresh look at the evidence and move toward the House position. If the Senate fails yet again to address this issue, consumers will pay the price.”
Background:

  • SB 1168 fails to include a common-sense reform to Florida’s one-way attorney fee law, which is used as a tool by the cottage industry of bad actors to extort higher claims payments from insurers.
  • SB 1168 would prohibit insurers from passing the cost of litigation in the insurance rate, a common, decades-old business practice.
  • SB 1168 also limits an insurer’s ability to deny coverage because of fraud by the insurance applicant, and further limits the insurer’s ability to properly adjust an assignment of benefits (AOB) claim.
  • PIFF supports HB 7015 — which includes strong consumer protections and a reasonable, effective attorney fee reform provision — and SB 62, its companion measure.

PIFF is a member of the Consumer Protection Coalition, which is a grassroots organization whose goal is to educate policymakers on the problem of AOB abuse and to find sensible, pro-consumer solutions that will reduce costs. Learn more about the AOB problem and the Coalition at fightfraud.today.

PIFF: “Florida Senate AOB proposal a giant step backward”

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The Personal Insurance Federation of Florida (PIFF) today issued the following statement on Senate Bill 1168, relating to insurance, filed by Senator Greg Steube (R-Sarasota). The bill is scheduled to be heard in the Senate Banking and Insurance committee this afternoon.

Michael Carlson, president of the Personal Insurance Federation of Florida (PIFF):

“After five years of producing strong evidence of a litigation-for-profit scheme driving up insurance rates, particularly in South Florida, the Florida Senate has offered up a giant step backward.

“This piece of legislation reflects the Senate’s indifference to the problem, or its gross misunderstanding of the core issues affecting homeowners.

“While the bill includes some very limited consumer protections, the overall effect of this legislation will be increased rates, as insurers avoid the risk of litigation. This will send a strong signal to the insurance marketplace that Florida is closed for business. Nothing could be worse for the average consumer.

“If the Senate bill advances, I hope senators will take a fresh look at the evidence and move toward the House position. If the Senate fails yet again to address this issue, consumers will pay the price.”

Background:

  • SB 1168 fails to include a common-sense reform to Florida’s one-way attorney fee law, which is used as a tool by the cottage industry of bad actors to extort higher claims payments from insurers.
  • SB 1168 would prohibit insurers from passing the cost of litigation in the insurance rate, a common, decades-old business practice.
  • SB 1168 also limits an insurer’s ability to deny coverage because of fraud by the insurance applicant, and further limits the insurer’s ability to properly adjust an assignment of benefits (AOB) claim.
  • PIFF supports HB 7015 — which includes strong consumer protections and a reasonable, effective attorney fee reform provision — and SB 62, its companion measure.

PIFF is a member of the Consumer Protection Coalition, which is a grassroots organization whose goal is to educate policymakers on the problem of AOB abuse and to find sensible, pro-consumer solutions that will reduce costs. Learn more about the AOB problem and the Coalition at fightfraud.today.

PIFF on Florida House passing AOB reform bill

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The Personal Insurance Federation of Florida (PIFF) today applauded the Florida House for passing HB 7015, filed by Representative Jay Trumbull (R-Panama City). The bill addresses increasing costs in the property insurance market created by the abuse of Florida’s “assignment of benefits” (AOB) law.
“For six years, PIFF has urged the Legislature to protect homeowners from AOB abuse and its direct impact on the pocketbooks of hard-working families, seniors and others on fixed incomes,” said PIFF president Michael Carlson. “All the evidence indicates that the driving force behind increased homeowner rates, especially in southeast Florida, is the abuse of the one-way attorney fee statute, which incentivizes inflated claims and unnecessary litigation. Changes to this law should immediately change the behavior of self-interested vendors and trial attorneys, creating a savings for Florida consumers.” 
HB 7015 includes a change in how attorney fees are awarded in cases involving an AOB that is designed to remove the incentive for bad behavior by creating a sliding scale for the award of such fees. It also includes many consumer protections, such as the requirement of a written estimate, the elimination of onerous cancellation and other fees, and protection from the mechanics lien law in cases where there is an AOB.
“Most importantly, if allowed to operate without obstruction from Florida’s trial bar, this bill will protect consumers and restore fairness to the law in a way that should reduce costs and take the pressure off of rates,” Carlson added. “We think it is high time the Florida House and Senate embrace these ideas and pass a bill that will directly help their constituents.”
PIFF is a member of the Consumer Protection Coalition, which is a grassroots organization whose goal is to educate policymakers on the problem of AOB abuse and to find sensible, pro-consumer solutions that will reduce costs. Learn more about the AOB problem and the Coalition at www.fightfraud.today.

Lawmakers must put consumers first in any repeal of PIP system

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The Florida Senate Banking and Insurance Committee today took an initial step toward repealing Florida’s fraud-riddled No-Fault/PIP auto insurance system with the passage of Senate Bill 150, filed by Senator Tom Lee (R-Brandon). If enacted, the existing No-Fault/PIP system would be replaced in 2019 by a new fault-based system requiring all motorists to carry bodily injury (BI) coverage of $20,000 per person/$40,000 per occurrence and mandatory medical payments coverage of $5,000. The BI limits are increased to $30,000 per person/$60,000 per occurrence after three years.
“If the Senate’s intent is to manage the cost of auto insurance for Florida drivers, high mandatory minimum levels of coverage, mandatory medical-payments and a new system without a third-party bad faith fix is not the solution,” stated Michael Carlson, president of PIFF. “If we move from No-Fault to a tort-based system, we urge lawmakers to protect consumers’ freedom of choice by allowing the market to determine the right mix of coverage limits and price.”
As the Senate considers this measure, PIFF said it urges members to carefully weigh how moving to a new system will impact consumers, and to consider key market-based principles. According to the organization — which represents 45 percent of the private passenger automobile insurance market and more than 20 percent of the private homeowners’ insurance market — any repeal of PIP must avoid unnecessary cost increases, such as high BI limits and mandatory medical payments coverage, and should address third-party bad faith litigation, which is a cost driver that could increase auto insurance premiums.
“As the debate on repealing PIP unfolds, PIFF is committed to working closely with legislators to ensure that Florida’s motorists receive the best coverage at the best prices possible, while avoiding unnecessary mandated coverages and litigation costs that drive up the price of auto insurance for everyone,” Carlson added.

PIFF supports efforts to decrease distracted driving

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Personal Insurance Federation of Florida Remarks on Texting While Driving Policy

The Personal Insurance Federation of Florida (PIFF) today applauded the House Transportation & Infrastructure Subcommittee for passing House Bill 33, Texting While Driving, filed by Representatives Jackie Toledo and Emily Slosberg. The bill amends the Florida Ban on Texting While Driving Law to make the enforcement of the ban primary.
Samantha Sexton, Vice President of Legislative & Regulatory Affairs for PIFF, shared the following remarks:
“Our members understand that texting while driving is a complicated distraction to reduce, but drivers must change their behavior for the benefit of all.
“PIFF hopes that by making texting while driving a primary offense, drivers will think twice before picking up their phones. Floridians are not only putting themselves at risk, but their passengers and other drivers when they text and drive.
“PIFF represents roughly half of the auto market in Florida, and like the Speaker, sponsors and co-sponsors, we want to see motorists arrive safely at their destinations.”

PIFF releases 2018 legislative priorities

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The Personal Insurance Federation of Florida (PIFF) today released its 2018 legislative priorities, which address the most critical issues facing the property and casualty personal lines markets in Florida. This list, which will be released annually immediately before the start of the legislative session, includes recommended law changes designed to fix problems in the consumer insurance markets, and identifies issues that PIFF members believe are detrimental to the health of these markets.

“Our overriding goal as a trade is to advocate for a healthy, competitive market for insurance products to the benefit of all Floridians,” stated Michael Carlson, president of PIFF, which recently welcomed Farmers Insurance to its membership. “In 2018, we believe the key priority should be to meaningfully address assignment of benefits (AOB) reform in a way that reduces fraud and abuse, and thereby reduces costs.”

2018 PIFF priorities include:

  • Eliminating the AOB cost driver, which is the cause for homeowners’ premium increases in Florida, by addressing the “one-way” attorney fee law to eliminate claims abuse and unnecessary litigation;

  • Thoughtfully addressing the costs of any repeal of the Motor Vehicle No-Fault Law, and including reasonable reforms to Florida’s third-party “bad faith” law as part of any repeal;

  • Restoring fairness to the law by fixing Florida’s unfair “bad faith” laws to require third-party claimants to comply with the law that applies to first-party claimants;

  • Preserving a proven, transparent, and performance-based premium tax credit which has created high wage jobs in Florida; and

  • Maintaining Florida law that governs when prejudgment interest may be awarded to claimants in negligence actions, which will avoid unnecessary cost increases.

“We look forward to engaging with our allies and partners in the legislature to promote positive policy outcomes in the coming year that will truly benefit consumers,” Carlson added.