Insurance Week: Florida Insurance Changes, Commercial Vehicle Accident Lawsuits and More

FL Legislature Approves Big Auto, Property Insurance Changes:

On the final day of their regular 2021 session last month, Florida lawmakers passed two bills that would bring significant changes to the state’s auto and property insurance industries.

SB 76 is aimed at shoring up the state’s homeowners insurance market, in which providers lost over $1.5 billion in 2020. Among other things, the bill would make the recovery of attorney fees contingent on the attainment of a judgment for indemnity that is higher than the pre-suit offer made by an insurer; reduce the amount of time to file a property insurance claim from three years to two; and require a plaintiff to file a pre-suit demand a minimum of 10 days before filing a lawsuit against an insurer.

SB 76 also targets roofing claims and litigation, which insurers say have exploded recently. The bill would prohibit roofing contractors from soliciting a claim via a phone call, electronic communication or other means; offering anything of value to perform a roof inspection; or conducting a repair without providing a detailed estimate of the labor and materials costs associated with it.

But the bill’s co-sponsor, Sen. Jeff Brandes (R), conceded it was just a “40% solution for what is needed in Florida to bend the cost curve.”

“Hopefully, it stabilizes rates, but really will ultimately do nothing to actually lower them,” he said.

If Gov. Ron DeSantis (R) signs the bill, it will take effect on July 1.

The other insurance bill (SB 54) would do away with the state’s current no-fault personal injury protection (PIP) system and instead require all drivers to have at least $25,000 worth of bodily injury coverage.

The bill’s sponsor, Danny Burgess (R), said a 2016 study showed that repealing PIP would lower auto insurance rates.

“It’s hard to predict market forces, but overwhelmingly the data shows we will see a [rate] reduction,” he said. “Certainly not a steep reduction, but I do believe we will see a reduction.”

But the American Property Casualty Insurance Association, which opposed SB 54, said its own analysis indicates the bill will raise the average cost of an auto insurance policy as much as 23 percent.

If DeSantis signs the bill, it will take effect Jan. 1, 2022. (INSURANCE JOURNAL, STATE NET)

Insurance Legislation on Move in TX:

Several insurance-related bills are progressing rapidly through the Texas Legislature.

HB 19, passed by the House on April 30, is aimed at limiting lawsuits stemming from commercial vehicle accidents. The measure, supported by insurers, would mandate two-part trials in civil actions involving commercial vehicles, when requested by a defendant.

SB 6, passed by the Senate on April 8, would retroactively provide civil liability protection from COVID-19-related lawsuits for businesses, healthcare providers, educational institutions, non-profits and religious institutions. Gov. Greg Abott (R) has said a such protections was one of his priorities.

SB 1602, passed by the Senate on April 28, would mandate the nonrenewal of a private passenger auto insurance policy if the insured failed to cooperate in a claim investigation, settlement, or defense. The intent of the bill is to provide an incentive for such cooperation, which currently doesn’t exist. (INSURANCE JOURNAL, STATE NET)

CO Lawmakers Considering Restrictions on Insurers’ Use of External Consumer Data:

A bill (SB 169) approved by Colorado’s Senate Business, Labor & Technology Committee last week would prohibit insurance companies from using external consumer data, including credit scores, social media habits and purchasing history, in a way that discriminates based on “race, color, national or ethnic origin, religion, sex, sexual orientation, disability, or transgender status.” The measure would also apply to algorithms and predictive models. (ASSOCIATED PRESS, STATE NET)

-- Compiled by KOREY CLARK