Citizens Posts Net Loss of $27M for 2016; Says Water Losses, AOB Abuse to Blame

Insurance Journal March 29, 2017 Citizens Property Insurance Corp. will post a net loss for 2016, its first loss in more than a decade, as water loss claims, assignment of benefit (AOB) abuse and litigation costs increasingly impact the company’s bottom line, according to a statement from the Florida state-run insurer. The Citizens Board of Governors was…

Michael Carlson: Don’t trade a tax cut for a tax increase- preserve the salary tax credits for insurers

For three decades, Florida has offered insurance companies a highly effective, performance-based tax credit that has resulted in tens of thousands of good jobs being created or imported to our state. Not only does this credit bolster our state’s economy in a transparent, accountable way, it also helps ensure insurance rates for Floridians stay as…

Editorial: Water Claims Spell Trouble for Florida Property Insurance Market

Tampa Bay Times Editorial A steady drip usually signals bigger trouble, and this is no exception. Insurance claims and lawsuits for water damage are climbing, and the mess is spreading from South Florida to Tampa Bay. That means trouble for private insurers and the state-run Citizens Property Insurance Corp. And that means trouble for homeowners…

Restoring Balance in Insurance Litigation

An Update of the Abuse of Assignments of Benefits and its Correlation with One-Way Attorney’s Fees by Mark Delegal and Ashley Kalifeh for Florida Association of Independent Agents, Executive Summary As discussed in FJRI’s 2015 paper,1 the prospect of one-way attorney’s fees has encouraged a growing number of lawyers to partner with various service providers…

Thousands of Florida Mortgages Could Be At Risk Because of Insurance Abuse

TALLAHASSEE An Ohio insurance-rating company has warned that recent court rulings and skyrocketing losses from water-damage claims have created an “uncertain operating environment” for Florida’s property insurers and that it will downgrade the financial stability of 10 to 15 Florida-based companies, potentially threatening the solvency of thousands of homeowners policies. Demotech, Inc., a company which…

Report Points to Problems with AOBs, and a Way Around One Proposed Fix

As the Legislature debates restricting attorney fees in insurance litigation involving assignment-of-benefits agreements, a tort-reform group has identified a way to circumvent that fix. Attorneys could convince policyholders to file suit in their own name. A report, “Restoring Balance in Insurance Litigation,” released Monday by the Florida Justice Reform Institute, discusses that possibility in the context of…