House Speaker Jose Oliva on the House floor March 12, 2020
The 2020 Legislative Session started with a group of bills aimed at curbing litigation abuse and stemming property insurance rate increases. Bills by Tampa Bay area legislators like SB 924 by Senator Jeff Brandes, (R-Pinellas County) to reform bad faith lawsuits and HB 7071 by Rep. Mike Beltran (R-Hillsborough County) to stop the enormous attorney fee awards allowed by a multiplier factor from a past Florida Supreme Court decision. (See my recent blog How a $41,000 Plumbing Leak Turned Into a $1.2 Million Attorney Fee.) Both these bills failed to make it across the finish line.
Changes to the Florida Hurricane Catastrophe Fund (Cat Fund), the state’s reinsurance organization, were unsuccessful as well, despite the headlines in the financial press that the private reinsurance companies in Europe and Bermuda were planning to raise rates 20+ percent.
On its way to the Governor is SB 1606 by Sen. Keith Perry (R-Gainesville). This bill made a handful of changes to the Florida Insurance Code along with another bill that made changes to Florida’s Insurance Guaranty Association (HB 529 by Rep. Jennifer Webb of Pinellas County). One successful important public policy issue will allow, as current practice, surplus lines insurance companies to designate their litigation venue versus proposed legislation that would have taken away that choice. The fact that this practice will remain status quo will likely contain surplus lines premiums from succumbing to the enormous rate increases that will most likely strike admitted market consumers.
Senate President Bill Galvano addressing the Florida Senate March 10, 2020
So no bills of any meaningful litigation or property insurance reform passed to help consumers who are ultimately the victims of frivolous lawsuits, overzealous plaintiff lawyers, and unscrupulous contractors who partner with them. We have more details and commentary in our Bill Watch this issue.
The session was scheduled to end this past Friday but was extended for another week solely to work out lingering budget issues. All other issues have been decided. As we focused our resources on outstanding bills in our Bill Watch, this is an abbreviated newsletter. Our bi-weekly newsletter will return on Monday, March 30.
I cannot do what I do without all of you doing what you do every day…the feedback, well wishes and support mean more than you will ever know. Whether it was a text, call or email that would cheer me on, the spring in my step got higher because I knew you were with me. Thank you doesn’t cover it!
Lisa
LMA Newsletter of 3-16-20
