Florida Lawmakers Pass Homeowners’ Rights Bill With Credit Restriction

May 1, 2014

  • May 2, 2014 at 10:49 am
    Johnw says:
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    Are carriers using credit info to deny a claim today? If not, why add this provision to the bill?

  • May 2, 2014 at 1:29 pm
    SWFL Agent says:
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    Might as well toss out the misrepresentation statute while they’re at it.

  • May 2, 2014 at 1:34 pm
    DJ says:
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    And THEY wonder why more companies don’t compete in FL market!

  • May 2, 2014 at 4:21 pm
    Wayne says:
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    Johnw, yes, UPC denies claims based on credit; a bankruptcy from 5 years ago gets your claim denied today.

    The new law doesn’t prohibit credit from being used in underwriting, it requires that if it is to be used, it must be done at application rather than at claim submission.

    I think the change is fair considering the hundreds of claims that have been denied because of an old credit issue or bankruptcy in the past.

    • May 5, 2014 at 11:13 am
      SWFL Agent says:
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      I don’t really care much about this since Universal is the company that’s abused it, but Universal isn’t denying claims because of the credit, they are denying claims based on the misrepresentation statue. But of course the public is outraged over anything to do with credit since it’s “never my fault”. These politicians needed to look at the fact that Universal will deny a claim based on driving record and driver’s license suspensions which is just as egregious as the credit issue.

      • May 8, 2014 at 8:38 am
        KY jw says:
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        Didn’t the carrier do a credit check when they received the application?

        I’m trying to understand how misrepresentation is used to deny claims if the insurer did a credit check when they received the application. It just sounds odd. Like they are looking for ways to deny claims, including holding on to information until they need it.

  • May 5, 2014 at 11:46 am
    Libby says:
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    The last I heard, claims were adjusted and paid based on language in insurance CONTRACT. Since when does your credit have anything to do with whether you’re filing a legitimate claim or not? Doesn’t there have to be some physical evidence of fraud before denying a claim? This is appalling.

    • May 5, 2014 at 1:14 pm
      SWFL Agent says:
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      Libby, Universal has several underwriting questions on their application including questions on bankruptcies, judgments, driver’s license suspensions, and others. They were denying claims based on Florida’s misrepresentation statute based on the answers to these questions. Here’s the real rub: A teenager in HH could have had a suspended license somewhere in their past due to an unpaid ticket and if this suspension occurred prior to policy inception, without parents knowledge, the parent could answer the question incorrectly and Universal can deny a claim based on the parent’s answer using the misrepresentation statute.

      • May 5, 2014 at 4:36 pm
        Libby says:
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        Wow. That’s incredible. It used to be that Texas was another world when it comes to insurance. I guess it’s now Florida. But really dirty pool on Universal’s part.

  • May 6, 2014 at 9:32 am
    Only Logic says:
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    Credit reports and scores are abused by those who bought into the “correlation between claims and credit scores” and regulators who have allowed it. There are no less than a billion other “correlations” between those and claims (Color of car?). Only those who grant credit can give detrimental information on your report/score – anyone see a problem here? Lots of wrongdoing by unscrupulous creditors regardless of whether you lose your income or not. Even with no change in habits, character, or actual claim experience, they will gouge you anyway – because they can.



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