The Florida state Senate recently released an accountability plan for property-casualty insurers that would significantly boost fines against negligent insurers and give a state agency new regulatory responsibility.
Governor Ron DeSantis (Photo: Politico)
Florida To Introduce Insurer Accountability Package
Politico reported that Florida legislators are aiming to crack down on unethical behavior within the property-casualty insurance industry, in response to accusations of collusion and monopolistic practices. The state Senate is currently working on an “insurer accountability package” which is intended to curb wrongdoing in the sector.
Among other things, this package would ramp up fines for insurers that behave improperly and would shift oversight of insurers to a state agency. This initiative has arisen in the wake of criticism from former President Donald Trump that Florida Governor Ron DeSantis had given too much support to insurance companies at the expense of homeowners.
The ongoing issues in real estate remain to be seen whether the new regulatory measures proposed by the state Senate will be effective in protecting homeowners from fraudulent or dishonest insurance practices. While the sanctions against insurers are certainly significant, the industry may have other ways to work around them.
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Trump: DeSantis Delivered the Biggest Insurance Bailout in History
Insurances companies have been accused of lowering claim totals for homes that were damaged by Hurricane Ian in Florida last year. The Washington Post reported that some insurers had altered damage assessments to reduce the amount of money paid out.
Governor Ron DeSantis has been criticized by former President Donald Trump for delivering the “biggest insurance bailout” to companies seen in history. Trump also criticized the governor for lowering payouts to homeowners whose houses were destroyed by the hurricane in a social media post. The former president referred to the situation as the “worst insurance scam in the entire country.”
In response to the crisis, the state of Florida has enacted a new law that places limitations on lawsuits against insurers. The insurance industry has acknowledged the move as a significant victory. Additionally, the state has set aside $2 billion in taxpayer money to provide insurers with additional insurance coverage on their plans.
DeSantis has come under fire from Trump for the handling of the insurance claims and support given to the insurance industry regarding the hurricane damage payouts. Despite criticism, the governor has already taken action to address the matter.
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