Insurance reform bill passed rejecting most changes

Updated: Saturday, August 3 2013, 02:34 PM CDT
Insurance reform bill passed rejecting most changes story image
Florida lawmakers passed on insurance reform this past year, rejecting most changes to  current law.

The state's consumer advocate is beginning a push for legislation to protect policyholders.
The state's second largest insurer is challenging a one point six million dollar fine.  Universal Property and Casualty is accused of finding minor errors in policy applications and then using the errors to cancel policies after homeowner's file claims. The practice will be the one of the subjects of a two day hearing next week by the State's Consumer Advocate.

Robin Wescott    Consumer Advocate-FL
"Yes they signed it, but did they really and truly intend to deceive anyone about the risk that the company was taking on and the answer to that is no. They weren't really trying to deceive anyone, it was a mistake."

The consumer advocate also wants to know more about third parties who are assigned benefits.
One scam currently being pulled on homeowners happens within days of a claim. Contractors offer to do all the negotiations with the insurance company, secure the rights and then inflate their claim.

State Lawmakers failed to stop the practice this past spring.

Lisa Miller    Insurance Lobbyist
"When someone assigns their rights away, that becomes a license to steal. And I think the legislature and others need to look at how that practice is being used inappropriately."

The insurance industry acknowledges that some problems exist, but they say they're born out of an effort to crack down on fraud.

Sam Miller   Florida Insurance Council
"We want to make sure we pay the legitimate claims but we don't pay for fraudulent reduced claims. 

The hope of the two day hearing next week is to educate lawmakers and get them to take the problems facing homeowners seriously.

Insurance reform bill passed rejecting most changes
comments powered by Disqus

Friday Night Rivals

Gulf Coast Fun

Health Watch

Home Improvement

Hurricane Center

Pay It Forward

advertisement

Waste Watch National Stories

Waste Watch Tips

ABC 3 is stepping up. You can join our "Waste Watch". If you have a government waste story, Call us at 850-456-3333, or submit a tip below. Submit a Waste Watch Tip
Please re-enter the code shown in the image below.
advertisement