Insurer Accountability Bill Passes Senate, Moves To Florida Governor’s Desk

Succeeding a series of new laws aimed at reducing insurance litigation, Florida lawmakers have unanimously approved a bill that will increase fines and oversight for property insurance companies.

The bill (SB 7052) will increase fines on insurers that fumble claims, increase reviews of high-risk insurers and insurers with many consumer complaints following a hurricane, and require carriers to inform the Office of Insurance Regulation (OIR) when they stop issuing new policies and why. In addition, the OIR will issue quarterly reports on enforcement measures.

The bill will now head to Gov. Ron DeSantis’ desk for signature.

The move comes after lawmakers passed a law in December 2022 eliminating the one-way attorney fee statute and the use of assignment of benefits (AOB) to a contractor, which insurers claimed were driving skyrocketing lawsuits, increasing losses, and premiums.

The law was a response to the failure of seven companies since the start of 2022 and the large hikes in rates sought by other companies.

Regulators still have discretion to decide when to impose fines, and insurers aren’t required to report the number of ongoing lawsuits they have.