MIAMI (CBSMiami/AP) – Florida lawmakers return to the Capitol subsequent week for a particular legislative session geared toward addressing issues within the state’s turbulent property insurance coverage market, a persistent and multifaceted disaster in a area susceptible to damaging hurricanes.
It remains to be unclear precisely how the GOP-controlled statehouse plans to deal with the problem legislatively forward of the weeklong session that begins Monday.
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In his proclamation calling lawmakers again to Tallahassee, Republican Gov. Ron DeSantis highlighted a number of points which have contributed to rising insurance coverage charges within the state, together with excessive charges of insurance coverage litigation that drive up premiums and big underwriting losses for insurance coverage firms which have resulted within the insolvency or canceled insurance policies, amongst different issues.
There can be added urgency to cross laws forward of hurricane season, which in earlier years has seen Florida battered with highly effective storms, such because the Category 5 Hurricane Michael in 2018.
Florida Chief Financial Officer Jimmy Patronis, in an interview, additionally careworn the issue of litigation, saying the state final 12 months accounted for 9% of all claims filed nationally however almost 80% of all of the property insurance coverage lawsuits.
Florida regulation makes it extremely worthwhile for legal professionals to sue insurance coverage firms even when the quantity received is comparatively small, and former strikes to restrict legal professional charges haven’t stopped the crush of authorized charges.
“The market right now is experiencing challenges that I don’t know if I’ve ever seen in my 16 years of being in Tallahassee,” he stated.
“We’re at a stage right now where the fraud and litigation abuse is deterring capital markets from wanting to deploy money into the Florida market.”
Still, Patronis, a Republican, warned that subsequent week’s legislative package deal received’t grant monetary instant reduction to owners.
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“The Legislature has the opportunity next week to do some good for the Florida policyholders that won’t be immediate, but at least over time we will see some relief,” he stated.
There has been rising consensus amongst lawmakers on the necessity to reform points of property insurance coverage regulation, with DeSantis saying the aim can be to “bring some sanity and stabilize and have a functioning market.”
Lawmakers might additionally precise modifications to Citizens Property Insurance, a state-backed insurer meant to be a final resort for property house owners unable to search out personal protection.
Amid issues within the state’s market, Citizens Property Insurance has seen insurance policies improve at a speedy charge and is anticipated to succeed in over one million insurance policies by the tip of the 12 months
The particular session comes after lawmakers didn’t cross insurance coverage laws throughout their common session, which led to March and was dominated by partisan rancor over payments coping with abortion, race and gender, and sexual orientation.
Separately, lawmakers final month completed one other contentious particular session on congressional redistricting and laws to dissolve a non-public authorities Walt Disney World controls on its property within the state.
The session is about to run from May 23 to May 27.
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