Over a hundred new laws made their way through the Florida House of Representatives and were implemented on July 1, 2019. One of those new laws overturned a controversial insurance rule that governed how insurance benefits are allocated to various parties and beneficiaries. The new law, HB 7065, will provide new definitions for several insurance terms like “assignment agreement.”
It will also revise old requirements for how insurance agreements were executed, and may change the validity of agreements already in place. In addition, even the effects of those agreements might change with the new law.
Insurers are now required by the new law to report new data about previously paid claims by January 30, 2022. One of the more controversial aspects of the law will allow insurers to reevaluate the way they assign benefits, or prohibit them altogether depending on the conditions.
Another controversial measure of the old law was struck down, which will allow attorneys to potentially collect more in fees by implementing a new revenue structure dependent on overall awards after litigation is won.
Barry Gilway, CEO of Florida’s Citizens Property Insurance Corp had this to say: “This is a consumer protection measure, not just in terms of impacting the overall premium they have to pay, but also giving them some protections they didn’t have before.”
These protections are the result of a battle fought for seven years between insurance companies and those advocating for change because of rising costs of all types of insurance coverage even as that coverage has diminished.
According to Gilway’s Insurance Corp, customers who have policies already in place will likely see relaxed rates soon enough, as the savings from the new provisions are expected to be passed down. Then again, that sounds a lot like “trickle-down” economics, and we all know how that concept actually plays out when put in practice.
Gilway’s organization experienced a lot of abuse as a result of former policies where AOB lawsuits are particularly popular, the rates of which have risen out of control over the last decade. That led the organization to ask for a shocking 97% increase in its overall rates for 2019.
If you are in the midst of insurance litigation in North Miami, then you might want to speak to a defense attorney about your situation.