TALLAHASSEE — The Florida Legislature is once again trying to decide what to do with the state’s 45 year-old No-Fault Automobile Insurance coverage law – more specifically, how to handle the persistent fraud that keeps increasing and with it, automobile insurance rates. But one component that’s rarely talked about is the Bad Faith doctrine – and the third-party vendors some say who are manipulating it to win bigger legal settlements from insurance companies.
David Bronstein and JD Underwood – two noted South Florida insurance attorneys on opposite sides of the issue – argue the merits of Bad Faith as it relates to consumer rights and insurance company profits on the latest episode of The Florida Insurance Roundup podcast here. They reveal in this program how just the threat of a Bad Faith case and its related costs are driving up premiums for all Florida insurance consumers. They share their insider perspective on how those looking to make a bigger buck rather than a reasonable claims settlement are hurting the availability and affordability of automobile, as well as homeowners insurance in Florida. The program is hosted by Lisa Miller, a former Florida Deputy Insurance Commissioner.
As the legislature considers bills replacing No-Fault PIP (Personal Injury Protection) insurance with mandatory Bodily Injury insurance (BI) – where Bad Faith claims are more prevalent than PIP claims and can result in large verdicts beyond the policy coverage limits – insurance companies want added provisions to require mandatory civil remedy notice by third-party claimants to level the playing field.
Links and Resources Mentioned in This Episode
+ Florida Office of Insurance Regulation, Tallahassee. www.floir.com
+ Florida Insurance Code Civil Remedy – Florida Statute 624.155
+ Making and Use of Rates for Automobile Insurance – Florida Statute 627.0651 (see section 12)
+ Florida Office of Insurance Regulation – Pinnacle Report on Review of Personal Injury Protection Legislation
The Florida Insurance Roundup from Lisa Miller & Associates, was created to bring Florida residents and seasoned insurance professionals alike the latest developments in Property & Casualty, Healthcare, Workers’ Compensation, and Surplus Lines insurance from around the Sunshine State. Subscribe to The Florida Insurance Roundup podcast here.