New Bill Proposes Citizens Policyholders Cannot Hire Public Adjusters
The Florida Senate must have taken a page from Insurance Company Declares War on Public Adjusters, as a recently filed Senate Bill SB 1714 prevents Citizens policyholders from hiring public adjusters. Since Citizens claims it is already immune from damages it causes while breaching good faith claims duties, policyholders would certainly lose if this bill becomes law. It would be easier for Citizens to reduce its claims costs by taking advantage of its policyholders after losses are suffered.
Julie Patel provided the highlights of the proposed legislation in Hefty Rate Hikes Proposed for Citizens Insurance Policyholders:
Allow policyholders' premiums to rise by up to 25 percent, not including rates for sinkhole coverage or for private catastrophe backup coverage.
Prohibit policies for customers who find coverage from a private insurer that charges up to 25 percent more.
Require Citizens to drop policies covering homes that cost $500,000 or more to replace by 2016. The deadline would be a few years earlier for homes that cost $750,000 or more to rebuild.
Bar Citizens policyholders from hiring public insurance adjusters to represent them in claims disputes.
Require Citizens to consider outsourcing more of its work, similar to state-backed insurers in other states. The insurer would hire a consultant to make recommendations on the costs and benefits of outsourcing, have its board submit a plan to the Cabinet for approval, and start implementing the plan by 2013.
Some public adjusters may think this legislation will never have a chance of passing. I suggest they read Vote held by Sawgrass Mutual: Policyholders elect to bar themselves from using public insurance adjusters, but were they informed? and get in touch with the hardworking and dedicated leadership of the Florida Association of Public Insurance Adjusters to see what they can do to better inform their legislators.
Chip...good post. Unfortunately, I hope everyone knows that this has a GOOD chance of passing.
If we let Citizens continue to get away with their demands, Florida's insurannce program will become similar to a communist regime.
Sean,
Many democracies fail to provide reasoned law because people do not become involved or involved soon enough. They watch as others in power simply legislate away their rights expecting "them, they, unknown supermen or the men in black" to save the day.
The insurance industry and corporate interests control much of the rhetoric and debate in Tallahassee today.
We'll see how this plays out.
Interesting news today in the Ft.Lauderdale Sun-Sentinel and Sarasota Herald regarding the dire straits Florida homeowners are in. The Sun-Sentinel reports 51% of homes in Broward County with mortgages owe more than their homes are worth. In Palm Beach County it's 44%. Statewide it's 47% and in Sarasota/Bradenton the actual number is reported to be 86,048 homes. Some pundits say there is another 5% to 10% to go before real estate bottoms out in Florida.
The significance of this in my view is if we get a major storm this year and if any of the anti-consumer legislation in the bills thus far proposed passes, our communities are going to be in big trouble! Under the proposed legislation, the insurance companies will send out their adjuster who will determine some actual cash value amount of the loss. Remember--as to Citizens, their policyholders will not be allowed to have professional claim representation with the result that is well documented in the OPPAGA report.
In my judgment post loss,common sense will rule in that homeowners and for that matter the banks are not likely to repair these upside down properties. Banks will keep the money! The result will be that whole neighborhoods will be left in ruin. My web site, publicadjuster.com, has a paper I wrote in the Resource Section titled Property Insurance and The Real Estate Meltdown that provides a historical perspective from rust-belt communities on this looming problem and a possible Florida solution, if we have, as expected this year, a run away anti-consumer legisative session.
The next step will be to deprive selected classes of the right to legal representation as well, soon to follow will be the end of popular elections, the coronation of the "KING OF AMERICA" who will appoint 50 sub rulers. How does "BARRON RICK SCOTT OF FLORIDA" sound? Has the constitution died? and American love of freedom with it?
Just the fact that anyone could offer a bill like that is OUTRAGEOUS.
If this bill passes there is nothing to preclude Citizens insured's from hiring attorneys. Citizens will pay out more in attorney’s fees and more for losses. No doubt the proponents of the bill have not considered that. The attorneys will still need estimators and appraisers. The only ones that will lose are the taxpayers.
Gene,
I cannot agree that taxpayers suffer because of this bill.
And, I cannot agree that more will be paid out in attorneys fees nor more for losses. I think there is nothing factual to support that.
The proponents of the bill have probably thought about those issues. They are not stupid.
We need someone like Norman Braman to recall Rick Scott, if he lets this bill and other anti-consumer bills pass.
Without public adjusters the files will be such a mess for by the time the attorneys get them and ultimately will harm the policyholder.
I do believe with FS 627.428 and the elimination of Public Adjusters, that Citizens will end up paying more in attorney fees and later passing it on to Florida tax payers.
Last, Rick Scott got into office and has stayed with the motto of "Getting Floridians back to work" if this bill and some of the others drafted for the insurance companies passes, he will be putting many of adjusters out of work.
Chip
Are you pro or against bill?
If you were asked to vote, how would you vote?
Chip
Are you going to respond to the Foriida Attorney?
Gene,
That question has got to be one of the stupidest questions ever asked of me. All of my posts, all of our firm's work, my money and my time have been against that bill. I helped organize FAPIA.
Of course I am against the bill. It is bad for consumers.