Thanks to compromises made, a bill proposing property insurance reforms to reduce fraud and overbilling passed the Florida Senate Appropriations Committee Mar. 1. The bill next heads to the full Senate floor; a similar bill had already advanced to the House the previous week.
The bill imposes a $25 cap on referral fees for any repair or restoration work payable by insurance proceeds, among other provisions aimed at preempting the assignment-of-benefits practice.
Sen. Dorothy Hukill, R-Port Orange was vexed over the passing of the bill over the one she proposed, arguing that the compromises made will not properly address the assignments-of-benefits problem present in the state.
"I don't want to wait until it becomes an absolute crisis," she said.
Compared to Hukill’s bill, which was endorsed by insurance industry lobbyists, the bill passed last Tuesday does not levy a $2,500 limit on emergency repairs made prior to inspection by insurance companies. It also does not require notification on the part of the policyholder to insurance companies any time the policyholder signs over benefits of a policy to a repair contractor. Additionally, it does not require advance approval by insurance companies of any invoice exceeding the value of a contractor’s original written estimate.
Hukill’s bill did not make it in committee, along with its House counterpart.
Sen. Miguel Diaz de la Portilla, R-Miami, who proposed the alternative bill with its compromises, said that it is "far as we've been able to bring it."
Opposition to Diaz de la Portilla’s bill came primarily from representatives of several contractors.
Consumer Protection Coalition spokeswoman Edie Ousley said that she hopes both Hukill and Diaz de la Portilla can further improve the bill into one "that better protects Florida families against the insurance scams that lead to fraud and abuse."
Property Casualty Insurers Association of America spokesman Logan McFaddin described the new bill a start, but asserted that "more reforms are needed for there to be real and lasting impacts."
"This is not entirely the finished product, but I think it's a good start," Diaz de la Portilla remarked. The state senator said he would review additional suggestions.
