Insurance Commissioner Calls For Assignment Of Benefits Changes

By NICK EVANS • JUN 15, 2017

David Altmaier.

Florida Insurance Commissioner David Altmaier.
CREDIT FLORIDA CHANNEL

Florida’s insurance officials are considering moves to rein in assignments after the Legislature again failed to take action. The procedure allows service providers to work directly with an insurer, but some say they’re taking advantage of the system.

Insurance companies are complaining that a procedure called assignment of benefits is going to force them to raise premiums, and a number of state officials have been sympathetic.

“It’s just flying off the chart,” CFO Jeff Atwater says. “And there’s nothing about the age of the home that seems to be involved, nothing about anything other than a few law firms have found a way to make the most of this opportunity with a few contractors.”

The outgoing cabinet member is joining insurance commissioner David Altmaier in urging state lawmakers to take action on the issue. But for a number of years legislation has faltered. 2017 was no exception.

Meanwhile Atwater says the problem—which began with ballooning water claims in South Florida—is only growing.

“It was localized, but it’s not anymore,” he says. “And there are both issues of water, fire—and now windshield.”

“And if you were to look at the data, Seminole County, a particular windshield repair player has done thousands all of the sudden,” he goes on.

“I mean, it’s as if how did every windshield in Seminole County all of the sudden go bad?”

The spike in windshield claims is actually centered in Hillsborough County, which according to the Florida Justice Reform Institute, accounted for more than a third of the state’s windshield litigation last year.

Commissioner Altmaier is weighing changes to claims forms—things like narrowing the definition of emergency mitigation or imposing requirements for notifying an insurer—that he believes could discourage fraud.

“So when we say policy form changes we’re going to continue to look at situations like that that can be clarified or shored up that can address this issue,” Altmaier says, “but at the same time make sure that we don’t unintentionally impact the ability for a consumer to get their claim paid or have the coverage that they need to have.”

State backed property insurer Citizens insurance recently established similar requirements.

Altmaier is quick to point out he wants legislative direction, but he says some abuses are out of control.

“You know, ‘Call this number and get a free roof. Call this number and get a free windshield. Here’s a free steak dinner if you call us and have your windshield repaired,’” he rattles off.

“I think that it’s clear to me based on that information as well as the data we have seen that there are individuals that have recognized that they are in an advantageous position if they get into litigation with an insurance company.”

Altmaier is still working on what his policy changes might look like and he doesn’t have a timeline yet for enacting them.

http://news.wfsu.org/post/insurance-commissioner-calls-assignment-benefits-changes

By NICK EVANS • JAN 19, 2016

A drone liability bill passed its second committee Tuesday.
CREDIT NICK EVANS

A Senate panel took up new drone legislation Tuesday. The measure aims at protecting Floridians from injury or property damage, but it’s moving forward without a controversial form of liability.

Florida’s skies are buzzing with an ever-increasing range of drones. Or at least that’s how Sen. Miguel Diaz De La Portilla (R-Miami) sees it.

“Members the use of drones by businesses and hobbyists is accelerating daily.” De La Portilla said at a committee hearing last week. “As they become more common, close calls involving drones and aircraft or people are accelerating as well. Last week for example a drone crashed into Seattle’s giant Ferris wheel.”

His bill came up again Tuesday in the Senate Commerce and Tourism committee.

There’s still plenty of sky to go around, but De La Portilla worries with more unmanned vehicles in the air, crashes and other accidents will follow. The Miami senator is pushing a bill making operators and owners of drones liable for damage or injury caused by negligence.

“There’ve been serious headlines already and we’ve seen the number of registrations has just skyrocketed so we’ll have a swarm of drones,” he says. “That could potentially injure people and injure them seriously.”

But De La Portilla is backing off from an earlier version of his bill that would’ve held owners and operators jointly and severally liable. That raised concerns because in 2006, the state legislature abolished the use of joint and several liability because it can lead to actors with relatively little fault shouldering a disproportionate burden of a judgement. Instead, De La Portilla unveiled a new version of the bill which declares drones are a dangerous instrumentality.

“The dangerous instrumentalities doctrine will make the owner of a drone responsible for the negligence of those allowed to use it,” De La Portilla explains.

Jeff Garvin is a pilot and attorney who supports placing restrictions on unmanned vehicles.

“Currently the FAA’s program is simply to register them and attempt to educate the owners of the drones of the risks involved,” Garvin says. “The problem with that and the reason that I’m tickled to see either joint liability or a dangerous instrumentality declared is that drones for many are toys so they’re going to be loaned out like other toys and not really supervised.”

But Florida Justice Reform Institute President William Large says there isn’t enough case law about drones yet to classify them as a dangerous instrument.

“So here would be something unusual—the Legislature would create this doctrine,” Large says. “Now I’m not actually saying the legislature can’t do it, I actually believe the legislature can do it, but up until this point in time this has been judicially created doctrine based upon a robust records based upon a finding of fact.”

And De La Portilla’s last minute audible left a number of his fellow lawmakers puzzled.

“The strike all amendment comes, and it’s left a lot of our business community confused,” Fernandina Beach Republican Senator Aaron Bean says. “I certainly want a robust economy not to be weighed down by the threat of lawsuits for doing everything and I’m still scratching my head over calling them dangerous instruments—hairdryers are dangerous instruments if you use them improperly.”

But the committee approved De La Portilla’s provision, sending it forward to its final stop in the rules committee.

http://news.wfsu.org/post/senator-wants-drones-classified-dangerous-instrumentality

Insurance Commissioner Calls for Assignment of Benefits Changes

Insurance Commissioner Calls For Assignment Of Benefits Changes

Senator Wants Drones Classified as a Dangerous Instrumentality

Florida Justice Reform Institute

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