Top Insurance Journal Florida Stories of 2023

Weather, windshields and reform were the most-read Insurance Journal stories for Florida readers in 2023, continuing a trend seen in recent years as insureds, insurers and lawmakers continued to manage the property insurance crisis in the Sunshine State.

Festival Canceled, Businesses Interrupted as Red Tide, Brown Seaweed Hit Florida

Residents in March complained about burning eyes and breathing problems. Dead fish washed up. A beachside festival was canceled, even though it wasn’t scheduled for another month. To add to the misery, a giant stretch of brown seaweed was expected to drift toward Florida’s spring-breaking beaches. The six-million-ton blob of smelly seaweed, perhaps a record amount, experts said, was spotted on radar east of the Caribbean and was expected to wash up on Florida’s east coast and on other eastern states in coming days, according to news reports. Although the blob never materialized on some Gulf-side beaches, the scare grabbed the attention of people all over the state.

Florida Bill to End AOBs in Windshield Repair

Auto insurance and tort-reform groups rejoiced when the Florida Legislature in March approved a bill that banned assignment-of-benefits agreements for windshield repairs, a measure that proponents hope will stem a flood of litigation aimed at insurers. “Any attempt by a policyowner to enter into such assignment agreement is void and unenforceable,” reads House Bill 541.

FEMA Releases New Flood Insurance Rates by ZIP Code. Brace for Impact.

When the Federal Emergency Management Agency unveiled its new Risk Rating 2.0 methodology for calculating flood insurance, advocates and critics alike warned that it would mean higher premiums for thousands of property owners, especially in low-elevation coastal areas. In May, the full impact of the sticker shock became clear, thanks to new data released by FEMA that shows price increases – and decreases – by county and by ZIP codes. For some parts of Florida, including the appropriately named Hell Gate on the East Coast, flood insurance will spike an average of 340%.

DeSantis Turns Heads with Comment that Citizens Insurance ‘Not Solvent;’ Board Approves Cat Bond

Florida Gov. Ron DeSantis raised some questions Friday when he suggested that Citizens Property Insurance Corp., the state-created insurer, has “not been solvent” and may be unable to pay all claims from a major hurricane. The head-scratching comments came just hours before the Citizens board of governors voted to spend more than $170 million over the next three years on $500 million in reinsurance bonds – over the objections of the board’s chairman. Citizens, by statute, cannot become insolvent. State law allows the company to levy a surcharge on Citizens’ policyholders and then on all carriers’ policyholders if its reserves and reinsurance layers fall short of losses in a catastrophic hurricane season. DeSantis acknowledged that assessment mechanism at the news conference. His comments had a broad impact. In November, the chairman of the U.S. Senate Budget Committee announced an investigation into Citizens’ loss reserves and its ability to pay claims.

Florida Insurers Face New Guardrails on Force-Placed Insurance

Starting in July insurers and mortgage lenders for Florida homeowners faced new restrictions on lender-placed insurance policies, thanks to a bill approved by state lawmakers this year. House Bill 793, signed into law, bars what some have called “double dipping” by lenders, or force-placing insurance before the homeowner’s previous policy has expired. The law, based on model legislation from the National Association of Insurance Commissioners, notes that lender-placed policies cannot take effect sooner than the date of lapse on the HO policy, and must terminate as soon as the mortgagee finds new market coverage.

Massive Citizens Takeout Plan Seen as Sign That Things Are Looking Up in Florida Market

Stakeholders near and far hailed a near-record number of takeouts from Citizens’ Property Insurance Corp. as a sign that the troubled Florida insurance market is improving, even if it will likely mean higher premiums for homeowners. “This is what happens when you have real insurance reform,” Louisiana insurance defense attorney Matthew Monson wrote on his Linkedin page in August. He argued that after Florida lawmakers in the last two years approved major reform measures that limited one-way attorney fees and assignment-of-benefits agreements, insurance companies are now showing a willingness to invest in the state, and he urged Louisiana lawmakers to adopt “Florida style” reform.

25,000 Lawsuits by Today? Florida Plaintiff Firms Rushing to File Before Tort-Reform Bill Signed into Law

The Florida Senate approved a take-no-prisoners tort-reform bill in March and Gov. Ron DeSantis signed it into law Friday. The bill, which extends limits on one-way attorney fees, assignments of benefits, and other provisions to most types of insurance claims, would take effect as soon as the ink is dry on the governor’s signature. And that won’t be a minute too soon, as plaintiffs lawyers have moved to file tens of thousands of claims lawsuits before the new restrictions kick in, insurance industry advocates said Thursday. An email from Cole, Scott & Kissane, one of Florida’s largest insurance defense law firms, was sent to the firm’s lawyers and was forwarded around the state. It relates a phone conversation with Matt Morgan, partner with Morgan & Morgan, one of the country’s largest plaintiffs’ firms. Morgan said that the Orlando-based firm planned to file 25,000 insurance-claim cases before the law took effect. Statewide, some insurance lawyers estimated that as many as 100,000 suits were filed before the law’s effective date.

Florida Authorities Charge 4 in Fraudulent Roof Claims, Issue Warrant for Contractor

Florida authorities in early December announced the arrest of four people in connection with an alleged scheme to deliberately damage roofs in order to qualify them for insurance claims. And another contractor well known to insurers was arrested in Fort Myers. A warrant for fraudulent activities was issued in November for Ricky Lynn McGraw, 37, owner of South Florida Restoration Services, or SFR, a company that has filed numerous lawsuits against property insurers in recent years. McGraw was arrested Sunday in Fort Myers and charged with grand theft and insurance fraud, both felonies. He posted bail early Monday, the Lee County Sheriff’s Office reported.

Topics Florida