Capital Soup

Florida News Straight From the Source

You are here: Home / Archives for PIFF

PIFF

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

Posted on

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”

Posted on

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 releases 2018 legislative priorities

Posted on

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.