Sides clash over malpractice bill from Jacksonville senator

March 18, 2025/in Jacksonville Today

Clay Yarborough speaks while a member of the Florida House of Representatives. | Florida House

By Jim Saunders – News Service of Florida
Published on March 18, 2025 at 4:07 pm

On one side are people telling heart-wrenching stories about the deaths of their adult children or parents. On the other are people warning about shortages of doctors and soaring medical malpractice insurance costs.

The two sides are colliding in the Florida Legislature, where a Senate committee Tuesday approved a bill that would change a decades-old law and clear the way for more malpractice lawsuits over patient deaths.

“The bill is about accountability, the value of life and ensuring our laws are just,” bill sponsor Clay Yarborough, R-Jacksonville, said moments before the Senate Health and Human Services Appropriations Committee voted 8-2 to approve the measure (SB 734).

But Sen. Gayle Harrell, a Stuart Republican who joined Sen. Colleen Burton, R-Lakeland, in voting against the bill, said “there are other ways to solve this problem without creating more problems in the system.” She and other opponents contend that high insurance costs drive doctors away from the state.

“We are desperately in need of physicians,” Harrell said. “If this bill passes, we are going to have an increase in medical malpractice (insurance rates). We are already the highest in the country, and it will continue.”

Proposals to change the 1990 law have surfaced periodically, but they could have more momentum this year. Yarborough’s bill has been approved by two committees, while a House version (HB 6017) has cleared one panel.

The bills involve wrongful death lawsuits and what are known as “noneconomic” damages for such things as pain and suffering.

They would undo part of the 1990 law that prevents people from seeking noneconomic damages in certain circumstances. People who are 25 years old or older cannot seek such damages in medical malpractice cases involving deaths of their parents. Also, parents cannot seek such damages in malpractice cases involving the deaths of their children who are 25 or older.

Numerous speakers have appeared at the Senate and House meetings to tell stories about how their parents or adult children died after medical malpractice — and an inability to pursue damages in the deaths.

Karen Aguilar said Tuesday that her 87-year-old father died in January because of alleged negligence at a Pasco County hospital.

“Some argue that financial compensation cannot replace a loved one, and you’re correct,” Aguilar told senators. “But wrongful death lawsuits are not about putting a price on a life. They are about ensuring accountability, deterring negligence and getting families a pathway to justice.”

But Andrew Bolin, an attorney who represents doctors and hospitals and spoke Tuesday on behalf of the business-backed Florida Justice Reform Institute, said clearing the way for more medical malpractice lawsuits would worsen problems such as what he described as “OB deserts” — areas of the state that do not have obstetrical care.

“Nonprofit hospitals have to stay open,” David Mica, a lobbyist for the Florida Hospital Association, told senators. “One-third of your rural hospitals in this state are operating at a negative margin.”

Sides clash over malpractice bill from Jacksonville senator

Sides Collide on Medical Malpractice Issue

March 18, 2025/in News Service of Florida

March 18, 2025 – Jim Saunders

TALLAHASSEE — On one side are people telling heart-wrenching stories about the deaths of their adult children or parents. On the other are people warning about shortages of doctors and soaring medical-malpractice insurance costs.

The two sides are colliding in the Florida Legislature, where a Senate committee Tuesday approved a bill that would change a decades-old law and clear the way for more malpractice lawsuits over patient deaths.

“The bill is about accountability, the value of life and ensuring our laws are just,” bill sponsor Clay Yarborough, R-Jacksonville, said moments before the Senate Health and Human Services Appropriations Committee voted 8-2 to approve the measure (SB 734).

But Sen. Gayle Harrell, a Stuart Republican who joined Sen. Colleen Burton, R-Lakeland, in voting against the bill, said “there are other ways to solve this problem without creating more problems in the system.” She and other opponents contend that high insurance costs drive doctors away from the state.

“We are desperately in need of physicians,” Harrell said. “If this bill passes, we are going to have an increase in medical malpractice (insurance rates). We are already the highest in the country, and it will continue.”

Proposals to change the 1990 law have surfaced periodically, but they could have more momentum this year. Yarborough’s bill has been approved by two committees, while a House version (HB 6017) has cleared one panel.

The bills involve wrongful-death lawsuits and what are known as “non-economic” damages for such things as pain and suffering.

They would undo part of the 1990 law that prevents people from seeking non-economic damages in certain circumstances. People who are 25 years old or older cannot seek such damages in medical-malpractice cases involving deaths of their parents. Also, parents cannot seek such damages in malpractice cases involving the deaths of their children who are 25 or older.

Numerous speakers have appeared at the Senate and House meetings to tell stories about how their parents or adult children died after medical malpractice — and an inability to pursue damages in the deaths.

Karen Aguilar said Tuesday her 87-year-old father died in January because of alleged negligence at a Pasco County hospital.

“Some argue that financial compensation cannot replace a loved one, and you’re correct,” Aguilar told senators. “But wrongful-death lawsuits are not about putting a price on a life. They are about ensuring accountability, deterring negligence and getting families a pathway to justice.”

But Andrew Bolin, an attorney who represents doctors and hospitals and spoke Tuesday on behalf of the business-backed Florida Justice Reform Institute, said clearing the way for more medical-malpractice lawsuits would worsen problems such as what he described as “OB deserts” — areas of the state that do not have obstetrical care.

“Non-profit hospitals have to stay open,” David Mica, a lobbyist for the Florida Hospital Association, told senators. “One-third of your rural hospitals in this state are operating at a negative margin.”

https://www.newsserviceflorida.com/latest/headlines/sides-collide-on-medical-malpractice-issue/article_960099e6-041b-11f0-9677-6fd3d8c339a0.html

‘Free kill’ fix moves forward in Senate as survivors argue for medical malpractice reform

March 18, 2025/in Florida Politics

‘Free kill’ fix moves forward in Senate as survivors argue for medical malpractice reform

A.G. Gancarski – March 18, 2025

Sen. Clay Yarborough’s proposal to fix a long-standing gap in state law that penalizes certain survivors of deaths at the hands of negligent doctors continues to move.

The Appropriations Committee on Health and Human Services is the latest panel to advance SB 734, which Yarborough calls a “clean repeal” of state statute — 768.21(8) — prohibiting adult children and their parents from collecting negligence and non-economic “pain and suffering” damages for medical malpractice.

Yarborough says the current state of play “singled out a narrow group of survivors who cannot recover non-economic damages in the case of a wrongful death due to medical negligence, even though the same damages can be recovered by survivors for a wrongful death that is caused by all other forms of negligence.”

Florida is the only state in the nation with the restriction on its books. Lawmakers passed it in 1990 when the state was trying to rein in increasing medical malpractice costs and attract more doctors to the state.

Yarborough stressed that most doctors do a good job.

“This is in no way a knock against the medical profession or anyone in it because Florida has some of the best health care providers and institutions in the country and beyond. I do not have a statistic to quote, but I will venture to say, we likely have a low single-digit percentage of those in Florida’s health care community that have issues with malpractice or negligence,” Yarborough said, framing his bill as being about “accountability” and “the value of life.”

More than two dozen speakers showed up with passionate cases for or against the legislation.

Opponents made the case that medical malpractice insurance has gotten more expensive and more difficult to procure in the last few years, so the pool of claimants should be expanded.

Tallahassee Memorial Hospital’s Judy Davis, a risk manager, said that “bad, unfortunate outcomes” do happen, but only 1 in 4 of them involve “some degree of negligence.”

“When physicians and hospitals have to pay large sums of money, it does reflect in higher insurance premiums,” Davis said.

Andy Bolin of the Florida Justice Civil Reform Institute said his clients “face the highest medical malpractice premiums” in the U.S. He argued that “infusing” new cases into the system would make that problem worse, and suggested that if the bill must go forward, damages need to be capped.

Associated Industries of Florida’s Adam Basford urged lawmakers to take a “holistic” view of the problem and “mitigate” the impact on providers.

The Florida Chamber’s Carolyn Johnson warned that the bill would increase litigation, insurance rates and health care costs, while decreasing access to care.

Proponents argued that survivors need the opportunity for compensation without caps.

Some told their personal stories of treatment deferred with horrible consequences and no recourse, while their advocates made the larger case for change.

AARP’s Karen Murillo said current law discriminates against older adults, arguing that people are being deprived of justice and rejecting the idea that this class of claimants should be held responsible for reducing liability for medical providers.

Ethan Perez described maltreatment for his grandfather that included injection with hydrogen peroxide, which an autopsy deemed to be “homicide,” but which was protected under current law.

“Civil lawsuits have an opportunity to reveal criminal wrongdoing,” Perez said, adding that his family is “being left without justice” due to the current “inhumane and barbaric” free kill law.

Lauren Korienko said her mother was found dead in a hospital bed, “covered with blood” after a minor surgery because medical professionals let her bleed to death over the course of 24 hours and succumb to septic shock. Her family was aghast to find they lacked recourse and protection under state law that makes Florida a “sanctuary for medical malpractice.”

Darcy McGill, another person who buried her mother after maltreatment, called Florida’s “free kill” law the state’s “dirty little secret.”

“I’ve yet to hear one good reason why my life is less valuable because I’m married and without children,” McGill said.

After the testimony, Senators diverged on whether the bill could work ahead of the bill moving forward.

Republican Sen. Gayle Harrell said the right move wasn’t this bill, but was to empower the Board of Medicine.

Republican Sen. Jason Brodeur said other states had these provisions without caps, so Florida should as well.

Democrat Sen. Darryl Rouson said the passage of the bill would be a “milestone moment” for people without recourse until now.

‘Free kill’ fix moves forward in Senate as survivors argue for medical malpractice reform

How much do you pay for property insurance in Florida? Here’s some good news. | Opinion

March 16, 2025/in Daytona Beach News-Journal

How much do you pay for property insurance in Florida? Here’s some good news. | Opinion

Between 2019 and 2023, average homeowner premiums in Florida surged nearly 60%.

William Large – Florida Justice Reform Institute

March 14, 2025

Gov. Ron DeSantis earlier this month revealed good news when it comes to Florida’s insurance market. Yes, good news.

During the last three years, the Florida Legislature has passed meaningful reforms to address unrestrained litigation and reign in skyrocketing attorneys’ fees, and their efforts are bringing down the cost of insurance, inviting more competition into the market and giving consumers more choice for coverage on their home and auto.

Between 2019 and 2023, average homeowner premiums in Florida surged nearly 60%. Not only were homeowners paying more for property insurance, but they had access to less coverage and fewer providers to choose from.

This was partly due to a legal environment that was too friendly to lawsuits against insurers. For a long time, Florida law allowed plaintiffs’ attorneys to recover their fees if they prevailed against insurers, even if the amount they secured through litigation was minimal; these fees were “one way” because plaintiffs faced no reciprocal risk that they would have to cover the insurance company’s attorney fees if plaintiffs lost. Assignments of benefits were also misused by third parties in order to access these statutory, “one way” attorney fees

Florida homeowners were left to foot insurance bill hikes

Unfortunately, the average Florida homeowner was left to foot the bill when insurance providers were forced to raise costs to cover excessive litigation. Many insurers determined that it was too costly to do business in Florida. By the end of 2024, more than 30 insurance providers had exited Florida’s marketplace.

The reforms began in 2021 when Senate Bill 76 required plaintiffs to notify an insurer before a lawsuit is filed. In turn, insurers are given an opportunity to reconsider a coverage denial and attempt to resolve a claim before it is the subject of litigation. The legislation also offered consumers additional protections from unscrupulous contractors.

Then in 2022, Senate Bill 2D, developed and passed during a special session called by the Governor, included additional tort reforms. This legislation prohibited assignment of the right to obtain attorney fees to anyone other than an insured or beneficiary named in the policy, thus eliminating abuse of these arrangements by third parties as a way to obtain attorney fees.

Later in 2022, another special session led to the passage of Senate Bill 2A. Senate Bill 2A eliminated the statutory right to recover attorney fees in a lawsuit arising under a residential or commercial property insurance policy.

Importantly, this legislation also implemented greater protections for consumers. The law requires insurance companies to be more responsive to their customers by limiting the time they have to respond to claims.

Building on these reforms, the Florida Legislature also passed House Bill 837 in 2023 to eliminate exorbitant attorney’s fees, strengthen negligence standards and provide stronger defense to those targeted by excessive litigation.

While our state leaders acted swiftly to develop, pass and implement solutions, we knew it would take time for these policies to stabilize the market. Now, the trends are moving in the right direction, providing much-needed relief to Florida’s homeowners.

Florida has 11 new insurance providers

In 2024, Florida had the lowest average homeowners’ premium increases in the nation, with an average statewide rate hike of just 1%. At the same time, premiums in other states have surged by more than 20%.

In addition, there are 11 new insurance providers in the market. And the providers that remain are expanding their business and filing for rate decreases.

This is only the beginning. As timelines run out for trial attorneys to pursue litigation under the more litigation-friendly law, the environment will continue to stabilize, reducing the burden of excessive litigation and bringing down costs even further.

Our state is proof that strong conservative leadership on the state level can lead to meaningful reforms. The steps our Governor and Legislature have taken are bringing stability to the market, leading to more choices and lower costs for Florida homeowners.

William Large is the president of the Florida Justice Reform Institute.

https://www.news-journalonline.com/story/opinion/columns/your-voice/2025/03/14/florida-home-property-insurance-desantis/82241314007/

How much do you pay for property insurance in Florida? Here’s some good news. | Opinion

March 16, 2025/in Panama City News Herald

Between 2019 and 2023, average homeowner premiums in Florida surged nearly 60%.

William Large – Florida Justice Reform Institute

March 14, 2025

Gov. Ron DeSantis earlier this month revealed good news when it comes to Florida’s insurance market. Yes, good news.

During the last three years, the Florida Legislature has passed meaningful reforms to address unrestrained litigation and reign in skyrocketing attorneys’ fees, and their efforts are bringing down the cost of insurance, inviting more competition into the market and giving consumers more choice for coverage on their home and auto.

Between 2019 and 2023, average homeowner premiums in Florida surged nearly 60%. Not only were homeowners paying more for property insurance, but they had access to less coverage and fewer providers to choose from.

This was partly due to a legal environment that was too friendly to lawsuits against insurers. For a long time, Florida law allowed plaintiffs’ attorneys to recover their fees if they prevailed against insurers, even if the amount they secured through litigation was minimal; these fees were “one way” because plaintiffs faced no reciprocal risk that they would have to cover the insurance company’s attorney fees if plaintiffs lost. Assignments of benefits were also misused by third parties in order to access these statutory, “one way” attorney fees.

Florida homeowners were left to foot insurance bill hikes

Unfortunately, the average Florida homeowner was left to foot the bill when insurance providers were forced to raise costs to cover excessive litigation. Many insurers determined that it was too costly to do business in Florida. By the end of 2024, more than 30 insurance providers had exited Florida’s marketplace.

The reforms began in 2021 when Senate Bill 76 required plaintiffs to notify an insurer before a lawsuit is filed. In turn, insurers are given an opportunity to reconsider a coverage denial and attempt to resolve a claim before it is the subject of litigation. The legislation also offered consumers additional protections from unscrupulous contractors.

Then in 2022, Senate Bill 2D, developed and passed during a special session called by the Governor, included additional tort reforms. This legislation prohibited assignment of the right to obtain attorney fees to anyone other than an insured or beneficiary named in the policy, thus eliminating abuse of these arrangements by third parties as a way to obtain attorney fees.

Later in 2022, another special session led to the passage of Senate Bill 2A. Senate Bill 2A eliminated the statutory right to recover attorney fees in a lawsuit arising under a residential or commercial property insurance policy.

Importantly, this legislation also implemented greater protections for consumers. The law requires insurance companies to be more responsive to their customers by limiting the time they have to respond to claims.

Building on these reforms, the Florida Legislature also passed House Bill 837 in 2023 to eliminate exorbitant attorney’s fees, strengthen negligence standards and provide stronger defense to those targeted by excessive litigation.

While our state leaders acted swiftly to develop, pass and implement solutions, we knew it would take time for these policies to stabilize the market. Now, the trends are moving in the right direction, providing much-needed relief to Florida’s homeowners.

Florida has 11 new insurance providers

In 2024, Florida had the lowest average homeowners’ premium increases in the nation, with an average statewide rate hike of just 1%. At the same time, premiums in other states have surged by more than 20%.

In addition, there are 11 new insurance providers in the market. And the providers that remain are expanding their business and filing for rate decreases.

This is only the beginning. As timelines run out for trial attorneys to pursue litigation under the more litigation-friendly law, the environment will continue to stabilize, reducing the burden of excessive litigation and bringing down costs even further.

William Large, Photo provided by the Florida Justice Reform Institute.

Our state is proof that strong conservative leadership on the state level can lead to meaningful reforms. The steps our Governor and Legislature have taken are bringing stability to the market, leading to more choices and lower costs for Florida homeowners.

William Large is the president of the Florida Justice Reform Institute.

https://www.newsherald.com/story/opinion/columns/your-voice/2025/03/14/florida-home-property-insurance-desantis/82241314007/

Suing insurers would become easier under bill that passes first legislative hurdle

March 14, 2025/in Sun Sentinel

Florida’s capitol building was the site of a House Civil Justice & Claims Subcommittee hearing to consider a hotly contested insurance bill on Thursday. (Dreamtime/TNS)

By Ron Hurtibise | rhurtibise@sunsentinel.com | South Florida Sun Sentinel
UPDATED: March 14, 2025 at 2:15 PM EDT

Policyholders would find it easier to sue their insurance companies under a bill that passed its first hurdle in the Florida Legislature on Thursday.

But insurers warned that the bill would trigger the return of excessive lawsuits driven by so-called “one-way attorney fees” and undo progress that the insurance marketplace has achieved since reforms were enacted in 2022 and 2023.

Rep. Hillary Cassel, a Broward County-based attorney who represents policyholders in insurance disputes, sponsored the bill that she said would “strike a balanced approach” by awarding attorney fees to the prevailing party in lawsuits.

The bill would not lead to excessive litigation, she said, because unlike before the reforms, policyholders would no longer be held harmless if they sue their insurer and lose, she said.

The bill, Cassel said, “creates a prevailing party standard, otherwise known as ‘loser pays,’ for awarding reasonable attorney’s fees by a judge after a judgment is obtained in an insurance contract dispute.”

The bill cleared the House Civil Justice & Claims Subcommittee by a 16-1 vote. Only Rep. Susan Plasencia, a Central Florida Republican, voted against it.

Prior to the reforms of 2022 and 2023, Florida law required insurers to pay policyholders if insurers ended up paying any amount over their original offer. Policyholders, meanwhile, were not required to pay insurers’ fees if they challenged and lost.

The arrangement morphed into a cottage industry for a small number of law firms that solicited plaintiffs door to door and bombarded insurers with litigation, insurers have long contended.

Plaintiffs attorneys argue that repeal of the one-way attorney fee statute required dissatisfied policyholders to pay attorneys out of their own pockets or agree to forfeit a quarter of any award. It also discouraged attorneys from representing policyholders in low-dollar claims that would not pay enough to justify the required effort, attorneys have said.

Supporters of the bill who attended the hearing included the Florida Medical Association, which represents physicians, the Merlin Law Group, a plaintiffs firm, and the Florida Justice Association, a trade and lobbying group for plaintiffs attorneys.

Opponents of the bill at the hearing included insurance industry lobbying groups, including the Association of Professional Insurance Agents, the National Association of Mutual Insurance Companies and the Florida Justice Reform Institute.

Katelyn Ferry, an insurance defense attorney and lobbyist for the Florida Justice Reform Institute, argued that the reforms are working and should be given more time. A provision of the reforms requiring plaintiffs to file notices that they intend to sue is leading insurers to settle claims before they proceed to litigation, Ferry said.

“Make no mistake: If this bill passes, it’ll eradicate Florida’s insurance market and devastate the citizens,” she said. “The positive changes brought about from the 2022 legislation will be erased. Carriers will begin leaving the state of Florida and we’ll face carrier insolvency. Homeowners will see spikes in their insurance premiums, which they cannot afford.”

Even if the bill is enacted, it remains to be seen whether it will survive a veto by Gov. Ron DeSantis.

During his State of the State address last week, DeSantis praised the Legislature for enacting “historic reforms” that have reduced the rate of increase of insurance premiums and encouraged 11 new insurance companies to enter the Florida market.

A few of the House members who supported Cassel’s bill said they were motivated in part by a Tampa Bay Times news article in February that stated insurers in a study reported losing $432 million between 2017 and 2019. Meanwhile, the study their affiliate companies showed a net income of $1.8 billion, said the Times report, which also was published by the South Florida Sun Sentinel.

Lori Augustyniak, president of the Professional Insurance Agents of Florida and a partner at the Bradenton-based Horizon Insurance agency, said in an essay published this week that the report was “misleading, incorrect and flawed.”

“Insurers don’t ‘hide’ money — they allocate capital to affiliates for reinsurance, operational efficiency, and regulatory compliance,” Augustyniak wrote. “This is an industry-standard practice monitored by state regulators to ensure financial stability and protect policyholders.”

But Rep. Ashley Gantt, a Miami-Dade County Democrat, likened the report to a “Scooby-Doo” episode that reveals that insurance companies, and not plaintiffs attorneys, were the actual villains of Florida’s insurance crisis.

“It’s insulting,” Gantt said. “This bill provides the justice that our constituents actually need.”

A hearing in response to the Times story was held Friday before the House Insurance and Banking Subcommittee in Tallahassee.

Suing insurers would become easier under bill that passes first legislative hurdle

Suing insurers would become easier under bill that passes first legislative hurdle

March 14, 2025/in Insurance Newsnet

Ron Hurtibise, South Florida Sun-Sentinel
South Florida Sun Sentinel – March 14, 2025

Policyholders would find it easier to sue their insurance companies under a bill that passed its first hurdle in the Florida Legislature on Thursday.

But insurers warned that the bill would trigger the return of excessive lawsuits driven by so-called “one-way attorney fees” and undo progress that the insurance marketplace has achieved since reforms were enacted in 2022 and 2023.

Rep. Hillary Cassel, a Broward County-based attorney who represents policyholders in insurance disputes, sponsored the bill that she said would “strike a balanced approach” by awarding attorney fees to the prevailing party in lawsuits.

The bill would not lead to excessive litigation, she said, because unlike before the reforms, policyholders would no longer be held harmless if they sue their insurer and lose, she said.

The bill, Cassel said, “creates a prevailing party standard, otherwise known as ‘loser pays,’ for awarding reasonable attorney’s fees by a judge after a judgment is obtained in an insurance contract dispute.”

The bill cleared the House Civil Justice & Claims Subcommittee by a 16-1 vote. Only Rep. Susan Plasencia, a Central Florida Republican, voted against it.

An analysis posted on the House website explained that the bill would create a “two-way” attorney fee structure by awarding legal fees to the prevailing party in disputes. Insurers would be required to pay policyholders’ fees if a policyholder obtains a judgment exceeding an insurer’s “highest written good faith settlement offer.” The insurer would collect if a policyholder challenges that offer but is denied a greater sum, according to the analysis.

Prior to the reforms of 2022 and 2023, Florida law required insurers to pay policyholders if insurers ended up paying any amount over their original offer. Policyholders, meanwhile, were not required to pay insurers’ fees if they challenged and lost.

The arrangement morphed into a cottage industry for a small number of law firms that solicited plaintiffs door to door and bombarded insurers with litigation, insurers have long contended.

Plaintiffs attorneys argue that repeal of the one-way attorney fee statute required dissatisfied policyholders to pay attorneys out of their own pockets or agree to forfeit a quarter of any award. It also discouraged attorneys from representing policyholders in low-dollar claims that would not pay enough to justify the required effort, attorneys have said.

Supporters of the bill who attended the hearing included the Florida Medical Association, which represents physicians, the Merlin Law Group, a plaintiffs firm, and the Florida Justice Association, a trade and lobbying group for plaintiffs attorneys.

Opponents of the bill at the hearing included insurance industry lobbying groups, including the Association of Professional Insurance Agents, the National Association of Mutual Insurance Companies and the Florida Justice Reform Institute.

Katelyn Ferry, an insurance defense attorney and lobbyist for the Florida Justice Reform Institute, argued that the reforms are working and should be given more time. A provision of the reforms requiring plaintiffs to file notices that they intend to sue is leading insurers to settle claims before they proceed to litigation, Ferry said.

“Make no mistake: If this bill passes, it’ll eradicate Florida’s insurance market and devastate the citizens,” she said. “The positive changes brought about from the 2022 legislation will be erased. Carriers will begin leaving the state of Florida and we’ll face carrier insolvency. Homeowners will see spikes in their insurance premiums, which they cannot afford.”

Even if the bill is enacted, it remains to be seen whether it will survive a veto by Gov. Ron DeSantis.

During his State of the State address last week, DeSantis praised the Legislature for enacting “historic reforms” that have reduced the rate of increase of insurance premiums and encouraged 11 new insurance companies to enter the Florida market.

A few of the House members who supported Cassel’s bill said they were motivated in part by a Tampa Bay Times news article in February that stated insurers in a study reported losing $432 million between 2017 and 2019. Meanwhile, the study indicated that with more than 50 companies included, affiliates made about $14 billion in net income, said the Times report, which also was published by the South Florida Sun Sentinel.

Lori Augustyniak, president of the Professional Insurance Agents of Florida and a partner at the Bradenton-based Horizon Insurance agency, said in an essay published this week that the report was “misleading, incorrect and flawed.”

“Insurers don’t ‘hide’ money — they allocate capital to affiliates for reinsurance, operational efficiency, and regulatory compliance,” Augustyniak wrote. “This is an industry-standard practice monitored by state regulators to ensure financial stability and protect policyholders.”

But Rep. Ashley Gantt, a Miami-Dade County Democrat, likened the report to a “Scooby-Doo” episode that reveals that insurance companies, and not plaintiffs attorneys, were the actual villains of Florida’s insurance crisis.

“It’s insulting,” Gantt said. “This bill provides the justice that our constituents actually need.”

An investigation into claims in the Times story was scheduled Friday before the House Insurance and Banking Subcommittee in Tallahassee.

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.

Suing insurers would become easier under bill that passes first legislative hurdle

Insurance Attorney Fee Fight Refueled

March 14, 2025/in Tallahasssee Reports

By The News Service of Florida on March 14, 2025

By Jim Saunders, The News Service of Florida

TALLAHASSEE — More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry..

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes, while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from the groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

Insurance Attorney Fee Fight Refueled

Insurance attorney fee fight refueled

March 14, 2025/in Citrus County Chronicle

By Jim Saunders News Service of Florida Mar 14, 2025 Updated Mar 14, 2025

Rep. Hillary Cassel, R-Dania Beach, is sponsoring a bill to revamp a law about attorney fees in insurance disputes. – Colin Hackley/File/NSF

TALLAHASSEE — More than two years after the Florida Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry.