Plus, launch of storm mitigation program
Florida kicks-off its free wind mitigation home inspections and grants program, the cost of automobile insurance in Florida is rising due in part to litigation, as an insurance company wins a major AOB-auto glass appeal, plus the top 10 insurance market conduct actions. It’s all in this week’s Property Insurance News.
Gable bracing in a home’s attic. Courtesy, Institute for Business & Home Safety
Storm Mitigation: The Department of Financial Services (DFS) has officially launched the My Safe Florida Home Program, created by the Florida Legislature this past spring. It is now accepting applications for a free wind-mitigation home inspection and, if approved, up to $10,000 in storm mitigation grants for qualified Florida homeowners. DFS expects to complete 140,000 to 145,000 initial home inspections for owners of single family homes. The inspections will identify building elements that could be improved to mitigate against future wind damage.
Those homes inspected may be eligible for a two-to-one matching grant up to $10,000 to do the mitigation work. The home must be in a wind-borne debris region of the state, on homesteaded property, insured for less than $500,000, and had its initial building construction permit issued prior to January 1, 2008. DFS expects to award between 11,000 and 12,000 grants based on current funding. Work will be performed by a DFS list of contractors that have agreed to participate.
Auto Insurance Rising: An analysis from insure.com ranks Florida as the most expensive state in the nation for auto insurance, with the average premium at $2,560 a year, or $213 a month. That’s a 23% increase in rates from 2021. “Florida’s rates are exceptionally high due to weather, as well as a large number of teen, senior and uninsured drivers on the road,” according to the report. “Unique schemes,” are also cited, including staged accident rings. We certainly know that a growing number of windshield Assignment of Benefits (AOB) claims have put upward pressure on rates as well.
The analysis notes that drivers in no-fault states such as Florida and Michigan pay more for auto insurance than drivers in other states. The 2021 legislature repealed Florida’s no-fault law, replacing mandatory personal injury protection (PIP) insurance with mandatory bodily injury (BI) coverage, but the bill was vetoed by the Governor.
Speaking of auto glass AOB lawsuits, the Insurance Journal reports that Florida’s 5th District Court of Appeals has upheld the dismissal of at least 16 cases against the Progressive Insurance Companies filed on behalf of six auto glass replacement companies.
Market Conduct Lessons: Wolters Kluwer Compliance Solutions has released its 18th annual list of Top 10 Market Conduct Criticisms for Property and Casualty Insurers based on examinations in the U.S. by state regulators:
- Failure to acknowledge, pay, investigate or deny claims within specified timeframes
- Failure to provide required compliant notices and disclosures in claims processing
- Using unapproved/unfiled rates and rules, rating errors
- Failure to process total loss claims properly
- Failure to issue correct payments and/or compliant denial notices
- Failure to cancel, non-renew, decline, or increase premium in accordance with requirements
- Failure to adhere to producer appointment, termination, records, reporting and/or licensing requirements
- Failure to provide required compliant notices and disclosures in underwriting processes
- Improper/incomplete documentation of claim files
- Improper/incomplete documentation of underwriting files
Wolters Kluwer also released its Top 10 Market Conduct Criticisms for Life and Health Insurers.
LMA Newsletter of 12-5-22
