Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Several measures to amend insurance procedures in favor of consumers have progressed in the Florida legislature this week.
On Tuesday, a House committee advanced a bill that would revoke previous provisions exempting specific information about defunct insurance companies from public records requests.
A day before, Florida’s Senate Banking and Insurance Committee unanimously approved a bill extending the ban on executives responsible for a company’s insolvency from taking a position at another insurance firm, increasing the duration from two to five years. An amendment to the bill also seeks to prohibit the use of artificial intelligence as the sole method of denying claims.
Why It Matters
For several years, Florida has been battling an insurance crisis fueled in part by frequent hurricanes, escalating litigation costs, and insurers leaving the market. Some homeowners who are unable to secure insurance on the private market have turned to the state’s insurer of last resort, Citizens Property Insurance Corporation. However, many have been redirected back to the private market as Citizens faces a record number of policies.
The consumer-friendly changes outlined in the recent bills, if implemented, could inspire more faith in the integrity of Florida’s private insurance market.
What To Know
In 2020, as the state’s insurance crisis was coming to a head, Florida’s Chief Financial Officer Jimmy Patronis pushed forward legislation protecting consumers’ claims from public records requests, while also exempting information concerning failed insurance companies—such as details on executive compensation, corporate governance, and risk assessments.
Major Florida Insurance Changes Advance
