Florida Justice Reform Institute

If this bill passes it will eradicate Florida’s insurance market – FJRI

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Subcommittee votes overwhelmingly in favor of insurance attorney’s contentious legislation

By Matthew Sellers – Mar 19, 2025

A Florida House panel has advanced a measure that could undo much of the work that has been done in the Sunshine State to reduce premiums, and could shift the financial burden of legal battles in insurance disputes back on to insurers in certain cases, reviving a debate over consumer protections and industry stability.

The state has long struggled with a high volume of insurance-related lawsuits, particularly involving claims for roof damage and water losses. Some attorneys and contractors have been accused of exploiting assignment of benefits (AOB) agreements and filing excessive or inflated lawsuits, leading to substantial legal costs for insurers. Florida accounts for a disproportionate percentage of the nation’s property insurance lawsuits, despite representing a much smaller share of total policies.

Last week, the House Civil Justice and Claims Subcommittee voted overwhelmingly, 16-1, in favor of HB 1551, introduced by Rep. Hillary Cassel, a Republican from Broward County and a practicing insurance attorney. The bill would allow policyholders to recover attorney fees if they prevail in lawsuits against their insurers, reversing recent changes that critics say stripped consumers of crucial leverage.

Cassel described the legislation as a middle-ground solution aimed at curbing exploitative practices while discouraging unnecessary litigation. “HB 1551 takes a balanced approach to attorney fee awards in insurance contract disputes,” she told lawmakers. “This bill aims to reform attorney fees awards in insurance litigation by promoting fairness and reducing unnecessary lawsuits.”

In 2022 and 2023, Florida lawmakers passed sweeping tort reform measures that eliminated what’s known as the “one-way attorney fee” provision, which previously enabled plaintiffs to recover legal costs when suing insurance companies. Insurers had argued the rule encouraged frivolous claims, while consumer advocates contended it gave policyholders a fighting chance against powerful insurance firms.

Under HB 1551, courts would apply a “prevailing party” standard – commonly referred to as a “loser pays” system – when determining whether insurers or policyholders are responsible for attorneys’ fees. Cassel stressed that the approach still requires consumers to share some financial risk while ensuring bad-faith denials by insurers don’t go unchecked.

Industry groups, however, warned the bill threatens the fragile recovery of Florida’s insurance market. Katelyn Ferry, representing the Florida Justice Reform Institute, argued the proposal could reverse recent progress. “Make no mistake: If this bill passes, it’ll eradicate Florida’s insurance market,” Ferry said. She credited previous reforms with curbing premium hikes and attracting new insurers to the state, questioning why lawmakers would “fix” a system she claims is working.

Meanwhile, Todd Michaels, president of the Florida Justice Association, voiced strong support for the bill, saying it would help restore fairness to a lopsided process. The core issue, Michaels said, is simple: “Shouldn’t it be the wrongdoer?” referring to insurers who improperly deny legitimate claims, prompting costly litigation.

House Speaker Daniel Perez, a Miami lawyer, has pledged to focus on consumer-oriented reforms. His comments, coupled with mounting scrutiny of the insurance sector’s financial transparency, have shifted the tone in Tallahassee.

Adding to the pressure, Florida Insurance Commissioner Michael Yaworsky acknowledged last week that his office may have fallen short in thoroughly investigating insurer conduct, citing staff shortages and other challenges during the height of the state’s insurance crisis. Executives at several insurance firms have disputed allegations of impropriety, arguing that the reports do not provide a complete picture.

During the subcommittee hearing, Democratic Rep. Ashley Gantt, an attorney from Miami, urged colleagues to back Cassel’s bill, referencing the recent reporting. Gantt compared insurers’ attempts to shift blame to plaintiffs’ lawyers to a “Scooby-Doo” villain reveal.

“Peel back the mask, and the real culprits are unscrupulous insurers,” Gantt said. “This bill provides the justice that our constituents actually need.”

https://www.insurancebusinessmag.com/us/news/legal-insights/if-this-bill-passes-it-will-eradicate-floridas-insurance-market–fjri-529037.aspx

Florida Justice Reform Institute

If this bill passes it will eradicate Florida’s insurance market – FJRI

/in

Subcommittee votes overwhelmingly in favor of insurance attorney’s contentious legislation

By Matthew Sellers – Mar 19, 2025

A Florida House panel has advanced a measure that could undo much of the work that has been done in the Sunshine State to reduce premiums, and could shift the financial burden of legal battles in insurance disputes back on to insurers in certain cases, reviving a debate over consumer protections and industry stability.

The state has long struggled with a high volume of insurance-related lawsuits, particularly involving claims for roof damage and water losses. Some attorneys and contractors have been accused of exploiting assignment of benefits (AOB) agreements and filing excessive or inflated lawsuits, leading to substantial legal costs for insurers. Florida accounts for a disproportionate percentage of the nation’s property insurance lawsuits, despite representing a much smaller share of total policies.

Last week, the House Civil Justice and Claims Subcommittee voted overwhelmingly, 16-1, in favor of HB 1551, introduced by Rep. Hillary Cassel, a Republican from Broward County and a practicing insurance attorney. The bill would allow policyholders to recover attorney fees if they prevail in lawsuits against their insurers, reversing recent changes that critics say stripped consumers of crucial leverage.

Cassel described the legislation as a middle-ground solution aimed at curbing exploitative practices while discouraging unnecessary litigation. “HB 1551 takes a balanced approach to attorney fee awards in insurance contract disputes,” she told lawmakers. “This bill aims to reform attorney fees awards in insurance litigation by promoting fairness and reducing unnecessary lawsuits.”

In 2022 and 2023, Florida lawmakers passed sweeping tort reform measures that eliminated what’s known as the “one-way attorney fee” provision, which previously enabled plaintiffs to recover legal costs when suing insurance companies. Insurers had argued the rule encouraged frivolous claims, while consumer advocates contended it gave policyholders a fighting chance against powerful insurance firms.

Under HB 1551, courts would apply a “prevailing party” standard – commonly referred to as a “loser pays” system – when determining whether insurers or policyholders are responsible for attorneys’ fees. Cassel stressed that the approach still requires consumers to share some financial risk while ensuring bad-faith denials by insurers don’t go unchecked.

Industry groups, however, warned the bill threatens the fragile recovery of Florida’s insurance market. Katelyn Ferry, representing the Florida Justice Reform Institute, argued the proposal could reverse recent progress. “Make no mistake: If this bill passes, it’ll eradicate Florida’s insurance market,” Ferry said. She credited previous reforms with curbing premium hikes and attracting new insurers to the state, questioning why lawmakers would “fix” a system she claims is working.

Meanwhile, Todd Michaels, president of the Florida Justice Association, voiced strong support for the bill, saying it would help restore fairness to a lopsided process. The core issue, Michaels said, is simple: “Shouldn’t it be the wrongdoer?” referring to insurers who improperly deny legitimate claims, prompting costly litigation.

House Speaker Daniel Perez, a Miami lawyer, has pledged to focus on consumer-oriented reforms. His comments, coupled with mounting scrutiny of the insurance sector’s financial transparency, have shifted the tone in Tallahassee.

Adding to the pressure, Florida Insurance Commissioner Michael Yaworsky acknowledged last week that his office may have fallen short in thoroughly investigating insurer conduct, citing staff shortages and other challenges during the height of the state’s insurance crisis. Executives at several insurance firms have disputed allegations of impropriety, arguing that the reports do not provide a complete picture.

During the subcommittee hearing, Democratic Rep. Ashley Gantt, an attorney from Miami, urged colleagues to back Cassel’s bill, referencing the recent reporting. Gantt compared insurers’ attempts to shift blame to plaintiffs’ lawyers to a “Scooby-Doo” villain reveal.

“Peel back the mask, and the real culprits are unscrupulous insurers,” Gantt said. “This bill provides the justice that our constituents actually need.”

https://www.insurancebusinessmag.com/us/news/legal-insights/if-this-bill-passes-it-will-eradicate-floridas-insurance-market–fjri-529037.aspx

Florida Justice Reform Institute

DeSantis stands firm against repealing Florida’s no-fault auto insurance law

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Governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system

By 

Efforts to dismantle Florida’s no-fault automobile insurance system may hit a roadblock as Gov. Ron DeSantis remains opposed to the proposed repeal. The governor previously vetoed a bill aimed at shifting the state to a fault-based insurance system and has shown no signs of reversing course.

Speaking after his State of the State address last Tuesday, DeSantis reiterated his stance, saying, “If they have a reform where we can show that it’s going to lower rates, it’s fine. But let’s 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.” He added, “I don’t want to do anything that’s going to raise the rates.”

Proposed legislative changes

Legislation proposed by Sen. Erin Grall (R-Vero Beach) and Rep. Alex Andrade (R-Escambia County) seeks to eliminate the requirement for personal injury protection (PIP) insurance and instead mandate bodily injury liability coverage of $25,000 per individual, $50,000 per incident, and $10,000 in property damage liability.

The House version (HB 1181) has been assigned to three committees: Civil Justice & Claims, Insurance & Banking, and Judiciary. The Senate version (SB 1256) must go through the Banking and Insurance, Appropriations on Agriculture, Environment, and General Government, and Rules committees before reaching the floor.

Personal injury protection (PIP) is a type of auto insurance that covers medical costs, lost wages, and related expenses for those injured in a car accident, regardless of who was at fault. Under Florida’s no-fault insurance law, drivers must carry a minimum of $10,000 in PIP and an additional $10,000 in property damage liability coverage.

 

The current system limits lawsuits against at-fault drivers, preventing claims for non-economic damages such as pain and suffering unless the injured party suffers a permanent injury, disfigurement, or death. The Florida Justice Association, which represents trial lawyers, has long supported repealing PIP, citing high insurance costs in the state.

Opponents of the repeal, including insurance industry lobbyists and Florida Justice Reform Institute President William Large, argue that lawmakers should allow more time to evaluate the impact of recent legislative changes before overhauling the system. Specifically, they want to assess how the elimination of one-way attorney fees, enacted in 2023, will influence insurance rates over the next few years.

Historically, Florida law allowed policyholders to recover attorney fees from insurers if they had to sue to obtain claim payments, a practice that critics argued incentivized excessive litigation. In 2023, the Legislature amended the law to require both parties to cover their own legal costs.

The debate over no-fault insurance is not new. In 2021, the Legislature passed a bill (SB 54) to replace PIP with a fault-based system, only for DeSantis to veto it. At the time, he acknowledged flaws in the PIP system but warned that repeal could create unintended consequences for both the market and consumers.

With legislative efforts once again underway, DeSantis’ opposition could prove a significant hurdle, leaving Florida’s no-fault system intact for the foreseeable future.

How did we get to where we are today?

Florida’s Personal Injury Protection (PIP) insurance system has a long and complex history, shaped by legislative reforms, legal battles, and ongoing debates about its effectiveness. PIP was introduced in 1971 as part of the state’s no-fault auto insurance system, aiming to provide medical coverage and lost wage benefits to accident victims regardless of fault. Over the years, the system has faced significant challenges due to fraud, rising costs, and attempts to repeal or replace it.

Origins and Implementation

In 1971, Florida became one of the first states to adopt a no-fault auto insurance system, requiring drivers to carry PIP coverage. The goal was to reduce litigation related to auto accidents by ensuring individuals involved in crashes could access up to $10,000 in medical expenses, lost wages, and death benefits. The system was designed to lower insurance costs by limiting lawsuits over minor accidents.

Challenges and reforms

Over time, the PIP system faced numerous issues, primarily due to fraudulent claims and staged accidents, which led to increased premiums for drivers. Several legislative reforms were enacted to address these challenges.

2003 – Anti-fraud measures

In response to growing fraud and staged accident schemes, Florida introduced reforms that increased penalties for fraudulent PIP claims. The law also implemented stricter licensing requirements for healthcare providers to curb fraudulent medical billing.

2007 – Sunset and reinstatement

Florida’s PIP law briefly expired in 2007, but was reinstated within months due to concerns over increased lawsuits and lack of coverage for accident victims. The reinstated law introduced additional anti-fraud measures and required medical providers to be licensed to bill for PIP benefits.

2012 – House Bill 119 (PIP Reform Law)

One of the most significant overhauls occurred in 2012 under Governor Rick Scott. The reform introduced several key provisions:

  • Accident victims had 14 days to seek medical treatment, or they would lose PIP benefits.
  • Medical benefits were capped at $2,500 unless a physician, dentist, or emergency department diagnosed an emergency medical condition.
  • Massage therapy and acupuncture were no longer covered under PIP.
  • Required insurers to reduce PIP premiums by at least 10 percent by October 2012 and 25 percent by 2014, though costs did not significantly decrease for consumers.

Key legal battles

Several court cases have shaped the interpretation and enforcement of PIP insurance in Florida.

Kingsway Amigo Insurance Co. v. Ocean Health, Inc. (2011)

A Florida court ruled that insurers could not limit PIP payments to a Medicare fee schedule unless explicitly stated in the policy. This ruling led to insurers revising their PIP policies to clarify payment limitations.

2013 – Constitutional Challenge to PIP Reform

After the 2012 reforms, a group of chiropractors, massage therapists, and acupuncturists sued the state, arguing that the $2,500 limit and treatment restrictions were unconstitutional. A Leon County Circuit Judge initially blocked parts of the law, but an appeals court overturned the decision in 2014, allowing the reforms to stand.

Progressive Select Insurance Co. v. Florida Hospital Medical Center (2017)

The Florida Supreme Court ruled that insurance companies must clearly state in their policies how PIP benefits will be reimbursed. The case arose when Progressive attempted to pay medical providers based on the Medicare fee schedule, but the court found that the policy language did not specify this limitation.

Attempts to Repeal PIP

There have been several legislative efforts to replace PIP with a traditional liability-based system, but none have succeeded so far.

2018 – Failed PIP Repeal Attempt

Lawmakers pushed a bill to eliminate PIP and replace it with mandatory Bodily Injury (BI) coverage, but Governor Rick Scott opposed it, fearing higher premiums for some drivers.

2021 – Senate Bill 54 (PIP Repeal Bill)

The Florida Legislature passed a bill to replace PIP with a mandatory $25,000 bodily injury insurance requirement, but Governor Ron DeSantis vetoed it, citing concerns over potential cost increases for consumers.

2023-2024 – Continued Debate

Florida lawmakers continue to discuss replacing PIP with a fault-based system, but no major legislative changes have been enacted as of early 2024.

Current challenges and future outlook

Fraud remains a major issue, with Florida ranking among the top states for insurance fraud due to staged accidents, fraudulent medical billing, and excessive litigation. High insurance costs continue to burden Florida drivers, as the state has some of the highest auto insurance premiums in the nation. Lawmakers continue to explore potential replacements for PIP, but concerns remain about how changes would impact low-income drivers and uninsured motorist rates.

Conclusion

Florida’s PIP system has faced multiple reforms, legal challenges, and legislative repeal attempts over the past 50 years. Despite efforts to reduce fraud and control costs, PIP insurance remains a contentious issue. Future reforms may replace PIP with a traditional liability-based system, but until then, Florida drivers continue to navigate one of the most complex no-fault insurance systems in the US.

https://www.insurancebusinessmag.com/us/news/legal-insights/desantis-stands-firm-against-repealing-floridas-nofault-auto-insurance-law-527920.aspx

Florida Justice Reform Institute

Florida’s legislators aim for major insurance overhaul

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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 Justice Reform Institute

Allstate, Progressive, State Farm group calls out law firms driving up insurance costs

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Insurance Business

Allstate, Progressive, State Farm group calls out law firms driving up insurance costs

 by Lyle Adriano 24 Sep 2018

With small claims cases in Florida spiraling out of control, a group of insurers is looking to confront the law firms who are thought to be contributing to the rise of insurance costs in the state.

In 2016, Volusia County, FL had fewer than 4,500 small claims lawsuits. However, in 2017, that number more than doubled to a staggering 12,000.  Another county, Flagler, reported similarly significant increases in claims between 2016 and 2017.

Daytona Beach News-Journal reported that one local law firm is responsible for more than half of the small claims cases (and most of the cases involve PIP claims) in both counties: Simoes Davila.

In 2016, Simoes Davila filed 257 small claims cases in Volusia County. The following year, the firm filed 8,404. As of August this year, the firm had been responsible for 3,497 Volusia cases – representing 56% of all the small claims cases filed in the county.

Insurance industry experts warn that the surge is part of a statewide trend driven by lawyers who are looking to make high-volume business out of filing claims involving motorists in personal injury protection (PIP) – a program under Florida’s no-fault insurance statute that provides coverage of up to $10,000.

Data from the Florida Justice Reform Institute revealed that PIP lawsuits across the state spiked nearly 50% to a record high of over 60,000 in 2017. Lawyers can earn thousands of dollars in fees in cases over disputes worth just hundreds of dollars, experts cautioned.

In many of the cases, the attorneys were not even working on behalf of the clients, but for medical providers instead. This is due to the much-contested “assignment of benefits“ practice, wherein accident victims can sign over their claim to repayment to their healthcare provider, inviting the risk of medical price gouging.

State law also provides for a system called “one-way attorney’s fees,” which means if an insurance company loses a lawsuit or settles for unfavorable terms, it must pay the medical provider’s attorney’s fees. However, if the medical provider loses, it does not have to pay for the insurance company’s fees.

Michael Carlson, the president of the Personal Insurance Federation of Florida, pointed out that all these factors have empowered law firms across the state to sue insurers over even over the smallest of amounts medical providers claim they are owed.

“There’s a whole cottage industry of law firms that have sprung up over several decades,” Carlson said, whose organization represents insurers such as State Farm, Progressive, Allstate and Farmers. “Their whole practice is not representing the consumer who has been hurt in a car accident. They are representing the medical provider who has provided some medical service to the consumer.”

https://www.insurancebusinessmag.com/us/news/breaking-news/allstate-progressive-state-farm-group-calls-out-law-firms-driving-up-insurance-costs-with-spurious-112092.aspx 

Florida Justice Reform Institute

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