According to a recent editorial in the Wall Street Journal, Citizens Property Insurance Corp., announced its first net loss since 2005, in the amount of $27.1 million. Citizens projects an $86 million loss by 2018. The state backed insurer of last resort is blaming the losses on assignment of benefit abuse “whereby lawyers and contractors convince homeowners to sign over their right to sue insurers for certain kinds of home damage. Insurers typically settle these claims to avoid protracted and expensive court battles, and thanks to Florida law they’re on the hook for attorney’s fees too.” And these losses, primarily in the tri-county area, are Citizens’ justification for the ever-increasing rates in other parts of the state, including Monroe County.
The Florida Record has reported on legislation being considered in Tallahassee that hopes to curtail these abuses. Read the full article here: Florida lawmakers taking aim at assignment of benefits agreements _ Florida Record