The Florida Senate passed SB122 with much aplomb. It will attempt to address what is popularly seen as a chance to curb abuse and give policy holders protections while hopefully keeping policy premiums affordable. It was Commissioner David Altmaier who said “OIR’s main focus is to work towards decreasing insurance costs for consumers living in Florida, while balancing the solvency needs of companies operating in Florida.”
Governor Ron DeSantis still needs to sign it into law but that is considered a foregone conclusion. The law is scheduled to take effect on July 1st, 2019.
The following are the highlights of the bill’s provisions:
1) States what an AOB agreement is and regulates its validity and requirements
2) Addresses fees, prohibiting some and alters policy provisions in managed repairs
3) Shifts the burden of proof to the assignee re: failure to undertake newly transferred pre-suit duties and must prove that the failure has not prejudiced the insurer to perform contractually
4) Under certain conditions an insurance carrier will be allowed to make policies prohibiting assignment
5) Big revisions to the state’s one way attorney fees statute which under certain circumstances even allows the insurer to obtain fees
6) Notice provisions were added requiring the service providers to give both the insurers and the policy holders 10 days prior written notice before filing suit.
Clearly, this is a serious attempt to advance the goal of decreasing insurance costs while balancing the solvency needs of the industry. Exciting times are ahead, and we look forward to helping our clients chart their path.
Should you have any questions regarding this new legislation or regarding any other insurance matters, please contact us at info@kubickidraper.com.
