March 2025 – Page 7 – Florida Justice Reform Institute

DeSantis opposes repealing Florida’s no-fault auto law. Will his stand stall Legislature’s efforts?

March 6, 2025/in Florida Phoenix

‘I don’t want to do anything that’s going to raise the rates.’

By: Christine Sexton – March 6, 2025 4:46 pm

Traffic on I-95 via Florida DOT.

Gov. Ron DeSantis seems determined to put the brakes on efforts in the Florida Legislature to scrap the state’s no-fault automobile insurance laws, including a requirement for drivers to buy personal injury protection.

The governor already vetoed one bill to repeal the state’s no-fault system and replace it with a fault-based one instead. Following his State of the State speech Tuesday, DeSantis indicated he has not changed his mind.

“If they have a reform where we can show that it’s going to lower rates, it’s fine. But lets just be clear. I mean, you know, we know that’s something that people from the legal and the trial bar have wanted to do. And so why would they want to do that? Obviously, they see that there’s opportunities for them to make money off of it,” DeSantis told reporters.

“I think that goes without saying. So, I don’t want to do anything that’s going to raise the rates.”

Republican Sen. Erin Grall of Vero Beach and Rep. Danny Alvarez of Hillsborough County have both filed bills to eliminate the requirement that drivers carry personal injury protection. Instead, the bills require drivers to carry $25,000 in bodily injury coverage for one person and $50,000 for two or more people per incident plus $10,000 in property liability coverage.

Alvarez’s bill, (HB 1181) has been referred to three House committees: the Civil Justice & Claims Subcommittee; Insurance & Banking Subcommittee; and the Judiciary Committee. Grall’s bill (SB 1256) faces hearings before the Banking and Insurance; Appropriations Committee on Agriculture, Environment, and General Government; and Rules committees.

Define ‘PIP’
Personal injury protection (PIP) is a type of car insurance that pays medical expenses, lost wages, and other costs of drivers and passengers injured in automobile accidents, regardless of who caused the accident.

Florida drivers are required to carry $10,000 in PIP coverage on their insurance policies under Florida’s no-fault automobile insurance system, plus $10,000 in property damage liability coverage. Those are minimum requirements and drivers can, and do, purchase additional coverage.

According to the Department of Highway Safety and Motor Vehicles, just under 6% of the drivers on Florida roads were uninsured as of February.

The state’s no-fault automobile insurance laws ban injured parties from bringing lawsuits against at-fault parties to recover noneconomic damages, such as pain and suffering and loss of consortium, although there are some exceptions (if a person suffers a permanent loss of an important bodily function; a permanent injury; a permanent scar or disfigurement; or death).

The Florida Justice Association, representing the trial bar, supports PIP repeal and notes that a Forbes analysis of automobile insurance rates pegs Florida as the most expensive state for car insurance in the nation. To meet the requirements of the law costs an average $1,529 annually.

Lobbying surge

A cadre of insurance lobbyists oppose the repeal, as does Florida Justice Reform Institute President William Large. They argue lawmakers should allow the state’s no-fault laws and PIP to remain in place for at least another three years to ascertain the effect the elimination of one-way attorney fees will have on rates going forward.

Since 1893, state law allowed policyholders to force carriers to pay any attorney fees they rack up if forced to sue to enforce claims — hence “one-way” fees. The idea was to counterbalance insurers’ financial and legal clout. In 2023, the Legislature required both parties to pay for their own attorneys’ fees.

The Legislature agreed in 2021 to repeal the no-fault system and the minimum mandated coverages and return to a fault-based system, but DeSantis vetoed the bill (SB 54). In his veto letter, DeSantis stated at the time that although the “PIP system has flaws,” repeal could bring unintended consequences for the market and the consumer.

Perez, who was vice chair of the House Judiciary Committee at the time, voted for the repeal.

Note: This story has been updated to correct the name of the House bill sponsor.

https://floridaphoenix.com/2025/03/06/desantis-opposes-repealing-floridas-no-fault-auto-law-will-his-stand-stall-the-legislatures-efforts/

Investigations to Legislation: Florida Lawmakers Weighing Insurance Industry Changes

March 6, 2025/in The Home Insurance Guru

By William Rabb | March 6, 2025

Florida legislative leaders, facing increasing pressure from the public and the press, this week pledged to investigate property insurers’ financial structures. And bills filed before the 2025 Legislature began this week also would require executive pay disclosure by carriers, along with other changes that could affect insurance agents and insureds.

Here’s a look at some of the issues Florida lawmakers are considering as they convene in Tallahassee.

Investigation on MGAs

Newly sworn House Speaker Danny Perez, R-Miami, on Tuesday announced an investigation into property insurance carriers’ relationships with their managing general agents and other affiliated companies. The call for House hearings came a week after the Tampa Bay Times and Miami Herald reported that a 2022 analysis by the Florida Office of Insurance Regulation, made available only after a two-year wait on a public records request, suggests that insurers had diverted billions to affiliate companies while claiming financial hardship from hurricanes and claims litigation.

Perez

It’s far from certain if the speaker’s probe will lead to new restrictions or new reporting requirements for Florida carriers and MGAs. It’s not the first time the issue has been raised.

Insurance agents and industry advocates and lobbyists have pushed back on the news report and on the call for further investigations. Several have noted that the MGA arrangements that carriers employ already must be approved by OIR, and that it would be absurd for insurance holding companies to deliberately allow a carrier to sink into insolvency while diverting profits.

The Tampa Bay Times report “glides right by the comment that many affiliated companies poured back almost $700 million to the insurance companies in order to keep them from insolvency,” wrote Alan McGinnis, principal at McGinnis Himmel Insurance Agency in Tallahassee. His guest column was posted in Florida Politics and in insurance consultants recent blog posts.

Meanwhile, legislative changes enacted in recent years seem to be working, slowly but surely, bringing new capital and new carriers to the Florida market, with a slowing of rate increases.

Bills in the Hopper

Even without a House investigation on the table, insurance costs remain the number one concern for Florida homeowners, the Florida Association of Insurance Agents’ B.G. Murphy said in a recent webinar. At the same time, Florida business leaders and insurance executives and agents have urged lawmakers to steer clear of any changes to the 2022-2023 reforms that ended one-way attorney fees and disincentivized costly claims litigation.

The opposing sentiments have resulted in several bills that insurance interests are watching this year.

House Bill 643

HB 643, by Rep. John Snyder, R-Palm Beach, is considered a top priority for the FAIA. It would make it easier for agents to move commercial and commercial residential policyholders to surplus lines, and to sell Citizens Property Insurance Corp. policies. Agents would no longer be required to make a “diligent effort” to find coverage before obtaining surplus lines coverage.

“The diligent effort requirement serves no purpose,” Murphy said.

The bill also would soften the 2024 requirement that agents be appointed with at least three carriers before writing Citizens’ policies. Under HB 643, agents would be able to obtain a signed statement showing they have access to primary market carriers through a broker.

Senate Bill 230

Sponsored by Rep. Keith Truenow, R-Tavares, this omnibus-type bill would make a number of changes. For agents, it would reduce the number of pre-licensing education hours from 200 to 60 – a rule change that FAIA strongly opposes. That would “dumb down” the requirements for agents, something few people really want, FAIA’s Dave Newell said.

The measure, however, also would make it a little easier for insurers to avoid bad-faith claims, by further clarifying 2022 law that requires a court finding that the policy contract was breached, before extra-contractual damages can be demanded. It also would require plaintiffs to specify exact damage amounts demanded, and excludes attorney fees from damages. If insurers require more information from policyholders, that would have to be requested within a 60-day notice period, with 10-day extensions allowed.

It also would bar public adjusters from engaging in adversarial conduct with insurance adjusters, including recording insurer personnel. This has been an issue in recent years, with Citizens and other carriers charging that some public adjusters have physically threatened insurer claims workers, have video-recorded them and have taken other actions to thwart inspections.

SB 592 and HB 393

The bills would extend the popular My Safe Florida Condominium pilot program but would clarify that some detached buildings would not be eligible for the grants. It also would allow just 75% of unit owners to agree to apply for the program, not the current level of 100%. Only condo buildings of three stories or higher would be eligible.

For single-home mitigation measures, SB 1466 and HB 851 would set up a trust fund that would provide up to $300 million annually for the My Safe Florida Home program. It would allocate 5% of sales tax revenue generated from hurricane-impacted counties in the two months after a storm makes landfall.

SB 128

SB 128, by Sen. Danny Burgess, R-Zephyrhills, may get some attention since it appears to be consumer-friendly at a time of rising concerns about insurance corporation rates and practices. But it has led to some confusion in the industry.

The bill would require cancellation and nonrenewal notices be mailed and emailed at least 45 days before the termination date. But Florida law already requires 120-day notice for most nonrenewals and cancellations. SB 790 and HB 941 would bar insurers from cancelling policies for at least 90 days after repairs are made.

HB 705

The measure would exempt new Citizens policies from the glidepath, a statutory mechanism that limits Citizens’ rate increases each year. The change would be highly controversial but is considered free-market friendly.

Primary market insurance leaders and Citizens’ top brass have all called for an end to the glidepath, in order to allow the insurer of last resort to truly be an insurer of last resort and charge market rates or higher, which could encourage more competition. But Florida’s insurance commissioner and OIR recently slashed a proposed Citizens rate increase in half, keeping premiums for the carrier lower than other insurers in many areas of the state for 2025.

SB 554/HB551

State Sen. Don Gaetz was in the Florida Legislature for a number of years until he retired in 2016. Now he’s back, after being re-elected last fall. His bill, SB 554, would make a number of revisions that can be seen as consumer-friendly, but which insurers and agents say would unwind most of the 2022 litigation reforms.

The measure would repeal the 2022 ban on one-way attorney fees, replacing it with a sliding scale. It also would require more disclosure of insurer executive compensation packages.

SB 734/HB6017

The bills would allow non-dependent family members to file medical malpractice suits. Long an issue in Florida, the current “free kill” statute, as it’s known derisively, limits tort actions only to spouses or dependent children of people fatally injured in medical treatment. Critics, including the Florida Justice Reform Institute, insurance companies and medical providers, have said passage of the measures would greatly increase the number of lawsuits filed in the state.

Dozens of other bills have been filed this year, including one that would make Citizens the wind insurer for all of Florida. But many of those offers are not expected to see much traction. Because the weeks preceding the regular session were taken up with immigration bills, that left little time for committee action on insurance legislation, meaning lawmakers now have only about five weeks to move bills across the finish line, explained former deputy insurance commissioner Lisa Miller.

Investigations to Legislation: Florida Lawmakers Weighing Insurance Industry Changes

Florida Justice Reform Institute president voices opposition to medical malpractice bill

March 6, 2025/in Florida's Voice

By Amber Jo Cooper
Published Mar. 6, 2025, 4:08 p.m. ET | Updated Mar. 6, 2025

(Official photo)

TALLAHASSEE, Fla. – President of Florida Justice Reform Institute William Large voiced opposition to efforts to reform Florida’s medical malpractice laws, suggesting that doing so would significantly raise the costs of medical services.

SB 734 expands the application of the Florida Wrongful Death Act by “repealing exceptions that prohibit certain parents and children of a deceased patient who dies due to medical negligence
from recovering noneconomic damages,” the bill’s analysis said.

Speaking on Florida’s Voice Radio with Drew Steele, Large said if the bill passes, he predicts a rise in medical malpractice lawsuits, particularly affecting elderly patients and their adult children, which could lead to an additional 500 cases annually.

WATCH: President of Florida Justice Reform Institute voices opposition to efforts at reforming Florida’s medical malpractice laws, suggesting that doing so would significantly raise the costs of medical services pic.twitter.com/Z6rQJJ41Ci

— Florida’s Voice (@FLVoiceNews) March 6, 2025
Large, an attorney, is an advocate for legal reform and previously led former Gov. Jeb Bush’s “fight to reform medical malpractice rules to cap damage awards,” according to the FJRI website.

Senate Rules Chair Kathleen Passidomo and Sen. Tom Leek were the only two who opposed the measure during a committee stop Wednesday, and the House bill’s Wednesday committee stop received full support.

“If our goal is to raise the standard of care in our state, we should hold the wrongdoers accountable,” Passidomo said. “I will not be able to support this bill today because it does not hold bad medical personnel accountable.”

The bill has two committee stops to go in the Senate and one committee stop in the House before they could reach a full vote by the legislature.

https://flvoicenews.com/florida-justice-reform-institute-president-voices-opposition-to-medical-malpractice-bill/

Families praise Clay Yarborough’s proposed ‘free kill’ repeal, but health care pros say it’s inoperable

March 5, 2025/in Florida Politics

Families praise Clay Yarborough’s proposed ‘free kill’ repeal, but health care pros say it’s inoperable

Jesse Scheckner – March 5, 2025

Lawmakers have tried for years to nix the 35-year-old law.

Legislation that would upend Florida’s unique law barring many medical malpractice lawsuits is again advancing in the Senate.

Families who had little recourse after losing loved ones say change is needed to bring overdue justice to the state’s health care market.

Opponents, most of them in the medical or insurance fields, warn it will make an already expensive industry unaffordable for patients and practitioners alike.

The Senate Judiciary Committee voted 9-2 to advance SB 734, which would repeal a 35-year-old state statute — 768.21(8) — prohibiting adult children and their parents from collecting negligence and noneconomic damages for medical malpractice.

The law, which detractors have dubbed “free kill,” applies to anyone over 25 seeking medical care in the state, including residents and visitors.

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.

According to U.S. Department of Health and Human Services data, Florida ranks third nationwide, behind only California and Texas, in the total number of medical malpractice cases and damages paid out.

The bill’s sponsor, Jacksonville Republican Sen. Clay Yarborough, said the law today may have been well-intentioned, but it wrongly singles out “a narrow group of survivors” who, in any other case of negligence, could seek recompense. The exceptions, he continued, run counter to the spirit behind Florida’s Wrongful Death Act of 1972, which reads in part, “It is the public policy of this state to shift the losses resulting when wrongful death occurs from the survivors of the decedent to the wrongdoer.”

“The legislative intent is clear. It was placed in law nearly 20 years before the exceptions at issue were placed in law and is still on the books,” he said.

“I filed (SB 734) because the current exceptions … are unjust and prevent accountability. … While we all understand no amount of money can bring back a loved one, to solely argue from a monetary or economic perspective would be misplaced because no individual and no institution is above accountability.”

At the end of the meeting, Yarborough indicated he is willing to amend the bill to ensure it can secure sufficient support from both legislative changes “and prevent exceptions from remaining on Florida’s books for another year.”

Naples Republican Sen. Kathleen Passidomo agreed there “is not enough money in this world that can compensate someone for the loss of a loved one due to medical negligence,” but she said that’s the central argument against passing Yarborough’s bill as-is.

Passidomo said bad doctors should face more serious penalties, including license revocations and business closures.

“The answer is to hold the wrongdoers accountable,” she said. “Writing a check will not fix the problem.”

Passidomo and Ormond Beach Republican Sen. Tom Leek voted against the measure, but Leek did not explain his vote.

Sen. Clay Yarborough said his bill is “about accountability and ensuring our laws are just.” Image via Florida Senate.

SB 734, as it’s currently written, does not cap noneconomic damages, meaning plaintiffs could, in some cases, secure damages that might bankrupt some health care providers found liable for negligence.

It would also likely increase malpractice insurance premiums in Florida, which are already among the highest nationwide.

Those were the main issues for roughly a dozen advocacy organizations, companies, and medical professionals who urged Senators to vote down the bill on Tuesday.

They included the Florida Chapter of the American College of Physicians, Senior Consumers of America, Florida Hospital Association, Florida Insurance Council, and Florida Orthopaedic Society. Medical malpractice insurers ProAssurance Corp. and The Doctors Company, as well as the Florida Justice Reform Institute and Florida Chamber of Commerce, sent representatives to oppose the measure.

Adam Basford of Associated Industries of Florida advocated for a “more holistic approach” that considered the quality, accessibility, and cost of health care equally.

Retired OBG/YN Miriam Ramirez said she had to stop delivering babies due to the cost of medical malpractice insurance. Daniel Daube, a physician and surgeon who has worked in Panama City for more than 30 years, said that Florida needs more practitioners in the state for better care — something SB 734 would help prevent.

Kathryn Magar, Vice President of Claims and Insurance at hospital operator Health First, said the bill would make her company’s four medical facilities all but uninsurable.

“I’ve yet to meet a clinician who got into the medical profession to cause harm,” she said. “The ‘free kill’ term is, quite frankly, offensive.”

But according to a dozen or so family members who advocated for SB 734 at its first Senate stop, there isn’t a more concise term to describe their tragic experiences and frustration with the existing law.

Sabrina Davis told the story of her 62-year-old veteran father, who died of an undiagnosed blood clot. The Florida Department of Health determined his blood work was below the standard of care and amounted to medical malpractice, but his 84-year-old physician was nevertheless permitted to continue practicing medicine after paying a $7,500 fine and taking a class.

“Florida is better than this,” she said. “I believe we can attract good doctors and get rid of the bad ones. I don’t like to use this term, but in a way, this (law) is providing sanctuary for bad medicine.”

Cindy Jenkins, whose daughter Taylor died two years ago at 25 due to what she described as “horrific negligence” at a hospital in St. Johns County, said medical malpractice premiums are high in Florida because Florida has a lot of medical malpractice.

“The way you decrease medical malpractice premiums is to stop medical malpractice,” she said. “My child is a free kill. I have no justice.”

Lauren Korniyenko’s 70-year-old mother died in a hospital two days after what she called an “uncomplicated surgery to repair a fractured hip.” Brevard County law enforcement cordoned off the room as a possible homicide scene, she said, and the autopsy revealed staff ignored at least 10 “critical signs of a surgical site infection” that led to her death.

“In an era focused on greater scrutiny of government spending, this law enables the waste and abuse of taxpayer money,” she said. “Medicare’s investigation of my mother’s death found that the doctor failed to appropriately evaluate my mother’s condition, yet it could not refuse payment without a malpractice judgment, something that our family cannot possibly obtain without this law.”

Representatives from AARP Florida and the Florida Alliance for Retired Americans signaled support for the measure.

Lawmakers have tried for years to nix Florida’s 35-year-old “free kill” law. This is Yarborough’s second consecutive year doing so.

His bill last year (SB 248) initially did not cap claims on noneconomic damages. He later amended the item to include ones for up to $750,000, but the bill stalled out in its second Senate stop after clearing the Senate Judiciary Committee on an 8-2 vote.

Other lawmakers have filed similar bills for the 2025 Session, including SB 616 by Fort Myers Republican Sen. Jonathan Martin, whose co-sponsor, Zephyrhills Republican Sen. Danny Burgess, is also a co-sponsor of SB 734.

In the House, Orlando Democratic Rep. Johanna López and Fort Pierce Republican Rep. Dana Trabulsy are carrying HB 6017, which is co-sponsored by Davie Democratic Rep. Mike Gottlieb.

HB 6017 — which, like Yarborough and Martin’s bills, has no caps on damages — advanced Wednesday with unanimous support from the Civil Justice and Claims Subcommittee.

SB 734 will be next heard by the Senate Appropriations Committee on Health and Human Services before going to a floor vote. HB 6017 has one more stop at the House Judiciary Committee before it’s subject to a full vote by the chamber.

SB 616, meanwhile, awaits a hearing before the first of three committees to which it was referred — all the same as those assigned to SB 734.

Families praise Clay Yarborough’s proposed ‘free kill’ repeal, but health care pros say it’s inoperable

How New Insurance Laws Could Change Auto and Home Insurance in Florida Forever

March 5, 2025/in Live Insurance News

March 5, 2025 -Ben Jones

Florida Insurance Woes as Challenges Mount for Homeowners and Drivers

Florida is at a crossroads when it comes to its insurance market, with homeowners and automotive policyholders grappling with escalating costs and industry instability. State lawmakers are taking on the issue with proposed laws that aim to create transparency, reduce premiums, and hold insurance companies accountable. However, with rising property insurance premiums and Florida’s rank as the most expensive state for car insurance, finding a workable solution is proving complex. Here’s a closer look at what’s happening, why it’s important, and how it could impact you.

Property Insurance Upheaval: From Rising Premiums to New Incentives

For homeowners, property insurance has become an overwhelming expense. This year, Citizens Property Insurance, Florida’s state-backed insurer, is increasing rates by an average of 8.6%. Nearly 80% of policyholders will see higher costs, with non-primary residences and mobile homes hit hardest. Governor Ron DeSantis has expressed concern over Citizens’ financial health, stating it could struggle to cover claims in the event of a major hurricane.

To counter these issues, lawmakers have filed several bills aimed at incentivizing storm and flood-resilient upgrades. One such proposal, SJR 1190, would freeze property taxes for 20 years for homeowners who elevate their homes or install hurricane-hardening features. This measure, coupled with state grants of up to $10,000, aims to reduce the number of claims filed after storms, thus lowering insurance costs in the long term.

But lawmakers are divided on whether these efforts are enough. Some argue that deeper reforms addressing insurance company practices and financial transparency are needed to stabilize the market, especially as rising housing costs continue to amplify the crisis.

What’s Driving Higher Insurance Costs in Florida?

Florida’s property insurance market faces unique challenges, including frequent hurricanes, increasing construction costs, and a litigious culture. A Tampa Bay Times investigation revealed that insurers, while raising rates, often pay exorbitant fees to affiliate companies for basic services, boosting profits while

To remedy this, new bipartisan legislation (SB 1656/HB 1429) would require insurers to disclose payments made to affiliate companies and explain how litigation and reinsurance expenses influence premiums. Another proposal (SB 554) takes this further by requiring detailed reports on executive compensation and financial ties between insurers and their affiliates.

These changes aim to bring visibility into an opaque market, empowering regulators and consumers to make informed decisions. For homeowners, this could mean a clearer understanding of why their premiums continue to rise and what needs to change to make insurance more affordable.

Auto Insurance Reform: Another Frontline in the Debate

On the automotive side, Florida’s no-fault auto insurance system, which requires $10,000 in personal injury protection (PIP), has long been criticized for inflating premiums. The state’s car insurance costs are the highest in the nation, averaging over $1,500 per year.

While past attempts to repeal the no-fault system stalled, momentum is growing for change. Proposed legislation (SB 1256/HB 1181) would replace PIP with a fault-based system, requiring drivers to carry at least $25,000 in bodily injury coverage per person and $50,000 per accident. House Speaker Daniel Perez, a longtime advocate for PIP repeal, supports the effort, believing it could alleviate financial pressure on drivers.

Critics, however, urge caution. Organizations like the Florida Justice Reform Institute have called for a three-year pause to gather data on recent policy changes, such as the elimination of one-way attorney fees. They argue that rushing into a new system could lead to unintended consequences, including market disruptions and higher rates for some drivers.

Technology Advancements Shake Up the Insurance Space

Amid regulatory debates, technology is playing an increasingly important role in modernizing Florida’s insurance industry. Companies are leveraging artificial intelligence and predictive analytics to streamline claims processing. For instance, AI-powered tools can assess property damage from drone imagery and satellite data after hurricanes, cutting down the time it takes to process claims and pay out benefits. Additionally, digital platforms enable consumers to compare policies, manage claims, and receive instant customer support—all from their mobile devices.

Telematics is another emerging technology being integrated into auto insurance policies. By analyzing real-time driving behavior through smartphone apps or in-car devices, insurers can offer usage-based policies with rates tailored to how safely someone drives. This not only provides more affordable options but also encourages safer driving habits.

While these tools won’t solve systemic issues like market instability, they offer a glimpse of how innovation can improve the customer experience, create efficiencies, and potentially lower costs.

Why It Matters—and What’s Next

For Florida residents, the stakes couldn’t be higher. With hurricanes becoming more severe and inflation persisting, the financial burden of insurance is only expected to grow. Legislative efforts to increase transparency, freeze taxes, and support resilient housing upgrades could alleviate some of the immediate pressures. At the same time, advanced technologies are making it easier for policyholders to manage their coverage and find savings.

Looking ahead, consumers can take steps now to better protect themselves. If you’re a homeowner, explore grant opportunities for storm-hardening upgrades and check with your insurer about discounts for safety improvements. Auto policyholders should shop around, considering usage-based insurance plans if you’re a safe driver with relatively low mileage. And for both, stay informed about legislative changes that could influence your premiums.

Florida’s insurance market is an ongoing challenge. But through a combination of legislative reform, technology-driven solutions, and individual action, there’s hope that residents can find much-needed relief while safeguarding their homes, vehicles, and financial futures.

How New Insurance Laws Could Change Auto and Home Insurance in Florida Forever

Florida’s legislators aim for major insurance overhaul

March 5, 2025/in Insurance Business

The state is scrambling to keep Citizens Insurance solvent, and fix problems before it becomes another California for carriers

By Matthew Sellers – Mar 04, 2025

As Florida’s 2025 legislative session unfolds, insurance remains one of the most pressing issues, with lawmakers proposing multiple bills aimed at stabilizing homeowners’ insurance premiums and reconsidering the state’s no-fault auto insurance system. The debate comes amid rising costs for both property and auto insurance, as well as growing concerns over the financial stability of state-backed Citizens Property Insurance.

Senator Blaise Ingoglia, a key player in insurance policy discussions, has introduced several proposals to address market instability and hold insurance companies accountable. One of his latest measures, SB 1740, would require insurers seeking approval to operate in Florida to maintain an additional $35 million in reserves beyond what is needed to cover policyholder obligations. The bill also includes new regulations barring executives and attorneys of failed insurance companies from taking leadership roles in another insurer if they were involved within five years before the company became insolvent.

In a bid to encourage homeowners to invest in hurricane and flood mitigation measures, Ingoglia has proposed SJR 1190, which would allow the Legislature to freeze property taxes for homeowners who elevate their homes or take other steps to make them more resilient. If approved by two-thirds of the Legislature, the measure would go before voters in 2026. Another bill, SB 1192, would ensure that these tax benefits remain in place for 20 years.

Despite strenuous efforts to control rising insurance costs, most Citizens Property Insurance policyholders will see their premiums increase in 2025. The state-backed insurer is raising rates by an average of 8.6%, despite claims from Governor Ron DeSantis suggesting a statewide reduction. Only 20% of Citizens customers will receive lower rates this year, while the majority will experience rate hikes, with non-primary residences and mobile homes facing the highest increases. Concerns over Citizens’ financial stability continue to mount, with DeSantis recently stating that the insurer is not solvent and could face serious challenges if a major hurricane strikes the state.

Lawmakers are also demanding greater transparency in how insurance companies operate. SB 1656 and HB 1429, introduced by Senator Jay Collins and Representative Tom Fabricio, would require insurers to disclose payments to affiliate companies and explain how litigation costs, reinsurance expenses, and other internal fees impact customer premiums. A similar bill from Senator Don Gaetz, SB 554, calls for reports detailing executive compensation and financial ties between insurers and their affiliate companies. Gaetz, along with House sponsor Representative Alex Andrade, is also pushing to reinstate Florida’s old one-way attorney fees system, which previously allowed policyholders to recover legal costs when successfully suing insurance companies. This would reverse a 2023 change that required both sides to cover their own legal expenses.

Another significant debate centers on Florida’s no-fault auto insurance system. The current law requires drivers to carry $10,000 in personal injury protection, regardless of who is at fault in an accident. Critics argue that this system contributes to Florida having the highest auto insurance premiums in the country, averaging over $1,500 per year.

Past efforts to eliminate the no-fault system have failed, including a 2021 repeal bill that Governor DeSantis vetoed due to concerns about market disruption. However, with House Speaker Daniel Perez, who previously supported repeal, now leading the chamber, lawmakers are making another attempt. SB 1256 by Senator Erin Grall and HB 1181 by Representative Danny Alvarez propose replacing PIP with a requirement for drivers to carry at least $25,000 in bodily injury coverage per person and $50,000 per accident.

Opponents of the repeal, including lobby group the Florida Justice Reform Institute, argue that lawmakers should wait and assess the impact of recent reforms designed to reduce litigation costs before making further changes. William Large, the organization’s president, has advocated for keeping the no-fault system in place for at least three more years to allow time for data collection.

Florida’s insurance market has struggled for years due to frequent hurricanes, increasing construction costs, and high litigation rates. Citizens Property Insurance, originally intended to serve as a last-resort insurer, has expanded significantly, raising concerns about its ability to cover claims if a major disaster occurs. The company currently holds nearly 943,000 policies, despite efforts to transition policyholders to private insurers.

With homeowners and auto insurance rates continuing to rise, lawmakers are under pressure to strike a balance between consumer protection and industry stability. The outcome of these legislative efforts will have lasting implications for Florida residents, making insurance one of the most contentious and closely watched issues of the 2025 session.

https://www.insurancebusinessmag.com/us/news/catastrophe/floridas-legislators-aim-for-major-insurance-overhaul-527036.aspx

Florida Insurance Crisis: Proposed Bills and Citizens’ Struggles

March 4, 2025/in Lawyer Monthly

Posted: 4th March 2025 – Linda McKendrick

Florida Faces Insurance Crisis: Proposed Bills and Citizens Property Insurance Struggles.

As Florida enters its 2025 legislative session, insurance remains one of the state’s most pressing issues. Lawmakers are introducing multiple bills to address the growing concerns surrounding homeowners’ insurance premiums, the no-fault auto insurance system, and the financial stability of Citizens Property Insurance. With escalating costs and a fragile market, the state’s insurance landscape is in turmoil.

Citizens Property Insurance: A Growing Concern

Citizens Property Insurance, once designed as a last-resort insurer for homeowners unable to obtain coverage from private carriers, is facing significant financial pressure.

Despite efforts to reduce its policyholder base, the insurer now holds nearly 943,000 policies, prompting fears that it may struggle to meet claims in the event of a major disaster.

For many residents, Citizens’ rate hikes are a hard pill to swallow. While the state has suggested reductions in overall premiums, Citizens plans to increase rates by an average of 8.6% in 2025. Notably, non-primary residences and mobile homes will see the highest increases.

Legislative Proposals to Address Market Instability

Lawmakers, including Senator Blaise Ingoglia, are actively working on a variety of insurance reform proposals. These bills aim to stabilize the insurance market, protect consumers, and hold insurers accountable.

SB 1740: This bill proposes that insurers seeking approval to operate in Florida must maintain an additional $35 million in reserves. It also seeks to prevent executives and attorneys from leading failed insurance companies for five years after a company goes insolvent.

SJR 1190: This proposal would offer property tax freezes for homeowners who take steps to elevate their homes or invest in hurricane and flood mitigation measures. The measure, if approved by the legislature and voters, would provide significant tax incentives to make homes more resilient to storms.

SB 1192: This bill ensures that property tax benefits for resilient homeowners remain in place for 20 years, providing long-term financial relief for those making mitigation improvements.

Increased Transparency and Accountability

Lawmakers are also pushing for greater transparency from insurers. Proposals like SB 1656 and HB 1429 would require insurers to disclose payments made to affiliate companies, as well as report on how internal costs—such as litigation expenses and reinsurance—impact consumer premiums.

Senator Don Gaetz is also championing SB 554, which demands detailed reports on executive compensation and financial ties between insurers and their affiliates.

A particularly notable push comes from Senator Gaetz and Representative Alex Andrade, who are working to reinstate the one-way attorney fees system. This system would allow policyholders to recover legal costs if they successfully sue an insurer—a system that was changed in 2023, requiring both sides to cover their own legal expenses.

No-Fault Auto Insurance: Another Controversial Issue

Another major issue on the table is the no-fault auto insurance system. Critics argue that Florida’s current law—requiring drivers to carry $10,000 in personal injury protection (PIP), regardless of fault—has contributed to the state’s high auto insurance premiums. Florida currently has some of the highest premiums in the country, averaging over $1,500 per year.

Senator Erin Grall’s SB 1256 and Representative Danny Alvarez’s HB 1181 propose replacing PIP with a requirement for drivers to carry bodily injury coverage. This would shift the burden of medical costs from PIP to bodily injury liability, a change that aims to lower premiums over time by reducing inefficiencies in the current system.

The opponents of the repeal, such as the Florida Justice Reform Institute, argue that the PIP system should not be changed without further data collection. They advocate for waiting at least three more years to fully assess the effects of recent reforms intended to reduce litigation costs.

The Financial Stability of Citizens Insurance

Despite the proposed reforms, Citizens Property Insurance remains in a vulnerable position. The company, which is the state’s largest property insurer, has struggled with rising costs due to frequent hurricanes, increased litigation, and high construction costs.

This has led to concerns that Citizens may not have the financial resources to handle claims after a major disaster. Governor Ron DeSantis has acknowledged that Citizens is not solvent and that the insurer may face serious challenges if a significant storm strikes.

The growing number of policies under Citizens, paired with rising premiums, has exacerbated the problem, and lawmakers are under pressure to find a balance between protecting consumers and ensuring the financial health of the state-backed insurer.

Florida has faced several significant insurance crises in the past, primarily driven by the state’s vulnerability to hurricanes, rising property damage costs, and legal challenges related to insurance claims and litigation. Here are some key points from past insurance crises in Florida:

1. Hurricane Damage and Rising Costs

- Hurricanes are a major factor contributing to Florida’s insurance crises. The state is prone to frequent hurricanes and tropical storms, which can cause widespread damage. This has led to high claims payouts for insurers, making it difficult for them to stay financially solvent while keeping premiums affordable for residents. After major hurricanes, such as Hurricane Andrew (1992), Hurricane Katrina (2005), and Hurricane Irma (2017), insurance premiums rose drastically.
- In the aftermath of Hurricane Andrew, many insurance companies left Florida due to the financial strain of covering storm-related claims. This led to a significant market contraction and the creation of Citizens Property Insurance as the state-backed insurer of last resort for homeowners who couldn’t find private coverage.

2. Citizens Property Insurance and Market Instability

- Citizens Property Insurance was established in the 2000s as a safety net for homeowners unable to find coverage from private insurers. However, as Florida’s risks from natural disasters increased, Citizens’ market share grew, leading to concerns about its ability to cover widespread claims. Over time, Citizens became the largest insurer in the state, with nearly a million policies by 2023.
- Because it’s state-backed, Citizens doesn’t always set its premiums at market rates, making it an attractive but financially unstable option for homeowners. Rising claims costs and concerns over solvency have led lawmakers to continually debate reforms to reduce Citizens’ exposure to risk.

3. Fraud and Litigation Issues

- Another major issue for Florida’s insurance industry has been the rise in fraudulent claims and litigation. Florida has historically had high levels of property insurance lawsuits, often related to roof damage, contractor fraud, and disputes over policy claims. This led to increased litigation costs for insurers, which, in turn, raised premiums for policyholders. The state has tried to address these problems through legal reforms, such as the 2019 assignment of benefits (AOB) law, which aimed to curb abusive litigation practices.

4. No-Fault Auto Insurance Crisis

- Florida has also faced crises in its auto insurance market, particularly related to the no-fault auto insurance system. This system, in place for decades, required drivers to carry personal injury protection (PIP), regardless of fault in an accident. Critics of the system argued that it led to inflated premiums and increased fraud. In 2021, lawmakers attempted to repeal the no-fault system, but Governor Ron DeSantis vetoed the bill, citing concerns about the disruption it could cause to the market. The debate over Florida’s auto insurance system continues, as premiums remain among the highest in the country.

5. Post-2017 Hurricane Irma and Reform Efforts

- Hurricane Irma (2017) was a wake-up call for the insurance industry in Florida. In the aftermath of the storm, insurance rates surged, and many private insurers raised their premiums or stopped writing new policies in the state. As a result, more homeowners turned to Citizens Property Insurance, exacerbating its financial strain.
- In response, the Florida legislature has pushed for insurance reforms in recent years. Some of the key reforms aimed to reduce fraudulent claims, limit insurance payouts in the event of widespread damage, and provide greater transparency from insurers.

6. Insurance Market Challenges in the 2020s

- In the 2020s, Florida’s insurance crisis has continued, with higher premiums for homeowners and commercial properties. While insurance companies have raised rates in response to hurricane risk and increased payouts, Citizens Insurance continues to grow as a backup for residents who cannot find private coverage.
- Lawmakers are now debating how to balance the need for affordable premiums with the reality of natural disaster risks and the financial stability of insurers.

Looking Ahead: The 2025 Legislative Session

As Florida’s lawmakers work to stabilize the insurance market, the outcome of this year’s legislative session will have significant consequences for homeowners and drivers across the state. The proposed reforms, which aim to address both homeowners’ and auto insurance issues, will likely influence the state’s economic future, particularly with regard to natural disaster preparedness and overall market stability.

With insurance rates continuing to climb and Citizens Property Insurance at the center of the conversation, 2025 will be a pivotal year in shaping Florida’s insurance landscape.

https://www.lawyer-monthly.com/2025/03/florida-insurance-crisis-proposed-bills-and-citizens-struggles/

Here’s what lawmakers could change about property insurance in the next two months

March 3, 2025/in Yahoo News

Here’s what lawmakers could change about property insurance in the next two months

Jackie Llanos, Christine Sexton – Mon, March 3, 2025 at 5:52 PM EST

The coastline in Steinhatchee remains covered in debris on Oct. 3, 2024, following Hurricane Helene. (Photo by Jay Waagmeester/Florida Phoenix)

Insurance could prove the issue that dominates Florida’s 2025 legislative session, given that lawmakers have filed dozens of bills aimed at reining in homeowners’ insurance premiums and once again hope to repeal the requirement to carry no-fault car insurance policies.

Property taxes

Sen. Blaise Ingoglia Photo credit: Christine Sexton Florida Phoenix

Positioned as one of the most important lawmakers when it comes to insurance is Spring Hill Republican Sen. Blaise Ingoglia, who chairs the committee dealing with that industry. The Gov. Ron DeSantis ally has multiple proposals tackling home hardening against hurricanes and floods and reversing some of the legislative gains won by insurance companies.

“There are still a bunch of bills that have been filed, so we’re going to be going through the bills diligently,” Ingoglia told Florida Phoenix on Monday. “We want to make sure that any bill that winds up being heard in committee is holding insurance companies accountable, but making sure that we are doing everything that we possibly can to reduce premiums for homeowners.”

His most recently filed bill, SB 1740, would require carriers applying to conduct business in Florida to hold reserves of at least $35 million more than they need to cover obligations to policyholders.

Directors, officers, or attorneys of insurance companies that can’t pay their debts would be barred from joining another insurance company in that capacity if they were in their position within five years before the insurer becomes insolvent.

Under Ingoglia’s proposal, the state’s hurricane mitigation grants of up to $10,000 would go toward improvements that would result in a property insurance credit or discount. Republican newcomer Yvette Benarroch of Marco Island is sponsoring the House companion.

The senator also wants the Legislature to assume authority to freeze property taxes for homeowners who elevate and in other ways make their homes more resistant to winds and flooding. Two-thirds passage of that resolution, SJR 1190, in the Legislature would put that question in front of voters in 2026, and it would require 60% approval at the polls.

If voters want to make that change to the Florida Constitution, another bill, SB 1192, which Ingoglia filed on Feb. 25, would freeze property taxes for 20 years for homeowners who elevate their homes.

Pinellas Republican Reps. Adam Anderson and Kimberly Berfield filed the House companions.

Reports and more reports

Demands for more information and transparency are a common thread among the bills lawmakers have filed on property insurance this session.

During the insurance market upheaval following Hurricanes Irma and Michael, insurers raised premiums to cover their losses while their affiliate companies made billions, according to a recent investigation by the Tampa Bay Times. The affiliate companies increased their profits by overcharging the insurers for basic services.

A 174-page proposal, SB 1656/HB 1429, which Tampa Republican Jay Collins and Miami Lakes Republican Tom Fabricio filed on Friday, requires insurers to turn over to the Office of Insurance Regulation (OIR) documentation about fees paid to affiliates. The bill also requires the companies to tell residential property policyholders how the costs of litigation, reinsurance, and affiliate fees influence the rate the customer pays.

Sen. Don Gaetz (Photo/Florida Senate)

Former Senate President Don Gaetz — the Republican is once again representing the far western Panhandle in the upper chamber — is taking a similar approach with SB 554. His proposal, sponsored in the House by fellow Panhandle lawmaker Alex Andrade, requires OIR to create a report detailing the financial relationship between insurers and affiliates with at least 10% common ownership and another delving into insurance executives’ compensation.

Gaetz and Andrade also want to reinstate Florida’s old one-way attorney fees, which traditionally awarded litigation costs to homeowners who successfully sue insurance companies. In 2023, the Legislature required both parties to pay for their own attorneys’ fees, one of DeSantis’ priorities.

Across the aisle, Democrats have filed bills limiting property insurance rate increases and creating a trust fund to help people who can’t pay for their insurance. Meanwhile, Democratic House Leader Fentrice Driskell requested that House Speaker Daniel Perez and DeSantis investigate why the state concealed for two years the information the Tampa Bay Times reported.

PIP tussle

Personal injury protection (PIP) is a type of car insurance that pays for medical expenses, lost wages, and other related costs of drivers and passengers injured in automobile accidents, regardless of which driver causes the accident.

Florida drivers are required to carry a $10,000 in PIP coverage on their insurance policies under Florida’s no-fault automobile insurance system, which also requires drivers to purchase $10,000 in property damage liability insurance. Those are minimum requirements and drivers can purchase additional coverage on top of those mandated requirements.

The state’s no-fault automobile insurance laws ban injured parties from bringing lawsuits against at-fault parties to recover noneconomic damages, although there are some exceptions (if a person suffers a permanent loss of an important bodily function; a permanent injury; a permanent scar or disfigurement; or death.)

According to the Department of Highway Safety and Motor Vehicles just under 6% of the drivers on Florida roads were uninsured as of February.

The Florida Justice Association, which supports a PIP repeal, notes that a Forbes analysis of automobile insurance rates shows that Florida is the most expensive state for car insurance in the nation. To meet the requirements of the law costs an average $1,529 annually.

The Legislature agreed in 2021 to repeal the no-fault system and the minimum mandated coverages and return to a fault-based system, but Gov. DeSantis vetoed the bill (SB 54). In his veto letter, DeSantis stated at the time that although the “PIP system has flaws,” repeal could have unintended consequences for the market and the consumer.

Perez, who was vice chair of the House Judiciary Committee at the time, voted for the repeal at the time.

Fast forward to 2025 and there’s another concerted effort to repeal the PIP system, and Perez is speaker of the House of Representatives. The vehicles are SB 1256 by Sen. Erin Grall and HB 1181 by Rep. Danny Alvarez.

The bills would abolish PIP and instead require drivers to carry $25,000 in bodily injury coverage for one person and $50,000 for two or more people per incident plus $10,000 in property liability coverage.

Florida Justice Reform Institute William Large is lobbying against the repeal. Large, whose group advocates for lawsuit restrictions, says lawmakers should allow the state’s no-fault laws and PIP to remain in place for at least another three years while lawmakers gather market data. He says the pause would allow the state to ascertain whether elimination of one-way attorney’s fees reduced the costs of automobile insurance.

https://www.yahoo.com/news/trump-lashes-kentucky-republican-thomas-165649925.html

Here’s what lawmakers could change about property insurance in the next two months

March 3, 2025/in Florida Phoenix

Florida’s no-fault automobile insurance requirements could see some changes

By: Jackie Llanos and Christine Sexton – March 3, 2025

The coastline in Steinhatchee remains covered in debris on Oct. 3, 2024, following Hurricane Helene. (Photo by Jay Waagmeester/Florida Phoenix)

Insurance could prove the issue that dominates Florida’s 2025 legislative session, given that lawmakers have filed dozens of bills aimed at reining in homeowners’ insurance premiums and once again hope to repeal the requirement to carry no-fault car insurance policies.

Property taxes

Sen. Blaise Ingoglia Photo credit: Christine Sexton Florida Phoenix