Court Judgment Interest Rates and Insurance Reports and Practices ̶ HB 451 by Rep. Alex Andrade (R-Pensacola) and the similar SB 554 by Senator Don Gaetz (R-Pensacola) would essentially undo the 2023 tort reform under HB 837 that eliminated one-way attorney fees for plaintiff attorneys and reverts to something similar to previous attorney fee calculations under SB 76 that were part of the 2021 reforms. These bills are dead having never received an initial hearing. Read More
HB 451 features:
(Section 1) – Increased Judgment Interest Rate – The bill raises the interest rate on court judgments from 400 to 800 basis points.
(Section 2) – Insurance Transparency Reports – The Office of Insurance Regulation (OIR) must compile reports on:
- Business relationships between insurers and related entities that share executives or ownership.
- Executive compensation, detailing salaries, bonuses, and stock options as a percentage of the company’s revenue.
- These reports must be public and cannot be labeled “trade secrets” to avoid disclosure.
(Section 3) – Rate Review Consideration
- The newly required insurance reports from Section 2 will now be factored into the state’s insurance rate approval process.
- Executive compensation and company relationships will be used to determine if rate increases are justified.
(Section 4) – Claims Adjustments and Documentation
- Insurance company adjusters must use electronic estimating software. Deletes the requirement of the DFS emergency rule from October 2024 that public adjusters are subjected to these provisions
- If an adjuster manually changes pricing data, they must:
- Document all modifications.
- Provide explanations for changes.
- Identify who made the changes.
- Retain records for at least seven years.
(Section 5) – Claim Mediation Timeline – Insurers can no longer reinspect a property before a claim becomes eligible for mediation.
(Section 6) – Dispute Resolution & Attorney Fees
- When a policyholder sends a presuit demand, the insurer must either:
- Accept the demand.
- Make a counteroffer.
- Decline the demand.
- Before filing a lawsuit, both parties must go through mandatory mediation, splitting the cost equally.
- Attorney fees in property insurance cases are awarded based on how much the final judgment matches the original demand:
- 80% or more: Claimant gets full attorney fees.
- 20%-80%: Attorney fees awarded proportionally.
- Less than 20%: No attorney fees awarded.
- Exceptions: Attorney fees may still be awarded if:
- The insurer violates deadlines.
- The claimant’s demand is reasonable.
- The court finds bad faith on either side.
(Section 7) – Arbitration Disclosure – If an insurer offers mandatory arbitration with a premium discount, they must clearly show the discount amount in dollars in the policy quote.
(Sections 8, 9, 10) – Technical Adjustments – These sections update cross-references in existing laws to align with the changes introduced in HB 451.
(Section 11) – Effective Date – The bill goes into effect on July 1, 2025. (Return to Bill Watch)
