Florida Insurance Law Blog

Interesting article worth a read. Please see the link below.

http://www.gainesville.com/article/20120119/NEWS/120119424

This is a very well written piece about insurance bad faith. In essence, Florida's bad faith laws help to force insurers to uphold their end of the bargain with policy holders.

Florida's legislature, often criticized as beholden to the insurance industry, is considering ANOTHER bill to limit or kill bad faith. Fortunately for Floridians, last session's bad faith killing bill was not passed. However, that hasn't stopped the ever persistent insurance lobby from re-submitting the bill.

Florida's insurers don't need any more leverage over their insureds. Bad faith keeps the playing field somewhat level so the every day person or small business has some recourse against an insurer for failing to live up to their end of the deal. Make sure to educate yourself on this subject and the effect that a bad faith killing bill could have on you, your family, and/or your business.

http://www.miamiherald.com/2011/10/23/2467688/state-should-not-change-standards.html

A good read for those with tough choices to make regarding health insurance plans.

http://money.cnn.com/2011/09/26/pf/open_enrollment.moneymag/index.htm

Some sound advice, especially during hurricane season in South Florida.

http://money.cnn.com/2011/08/09/real_estate/homeowners_insurance.moneymag/index.htm

Hi, thanks for joining me here on my maiden voyage onto the Florida Insurance Law Blog. For my first entry, I’d like to address a common misconception regarding auto insurance that I’ve repeatedly encountered during my short, yet-oh-so-illustrious, legal career: The “Full Coverage” Fallacy. “Full Coverage” is almost always the response I get when asking friends, family, or potential clients about their auto insurance coverage. “Full Coverage” is the predictable and common response across all socio-economic and educational backgrounds, gender and races. The problem with the “Full Coverage” answer is that it doesn’t make any sense…from a legal standpoint anyway.

There is no such thing “Full Coverage” in Florida.

To the contrary, Florida law only provides that drivers carry a “minimum” level of coverage - $10,000 in Personal Injury Protection (PIP), which covers your own medical expenses incurred as a result of an auto crash, and $10,000 in property damage coverage (for more info on Florida's insurance requirements see http://www.flhsmv.gov/ddl/frfaqgen.html). Note that Florida law doesn’t even require you to purchase Bodily Injury (BI) coverage, which serves as a financial safeguard in the event that you are sued for causing an accident. By way of an oversimplified example, let’s assume you have $100,000 in BI coverage; you cause an accident and get sued. In that case, your BI coverage would cover you for any amount up to, and including, $100,000 in damages that the other driver might win against you. But wait, here’s where it gets interesting….

Let’s keep running with that same example: Let’s also assume that you earn $750,000 a year (I know, I wish too), and that you have hundreds of thousands of dollars in non-homesteaded property and assets. Let’s also assume that the person suing you was seriously injured and underwent surgery as a result of the accident you caused. Now, with those facts, that $100,000 in BI coverage doesn’t sound so comforting with all of those assets on the line. With the additional facts of this example, you could now find yourself in a position where you could/would be held personally responsible to pay for the injured person’s damages which exceed your BI policy limits. In other words, if the other driver were to win, for example, a $250,000 judgment against you, you could be on the hook for the other $150,000 in excess of your policy limits. This is an example as to why THERE IS NO SUCH THING AS “FULL COVERAGE” – too much insurance for one could mean, and often does mean, dangerously inadequate insurance for another. There is no “full coverage” standard. Sufficient coverage is solely dependent on your own personal circumstances, including your current and anticipated financial circumstances. I’ve known far too many young CPA’s, lawyers and doctors, who carry far too little insurance coverage just because they want to save a buck on the premiums. Trust me, I don't enjoy handing over money to those corporate conglomerate insurers, but it makes it easier to swallow when you think about what is at stake should you purchase too little coverage. It is also important to remember that there are legal remedies available to an insured if their insurer fails to live up to its end of the bargain.

Remember, although the law does require you to purchase minimum levels of insurance, you should purchase enough insurance to fully protect your assets. In theory, if you’re truly seeking “full coverage,” then you must examine your own personal financial circumstances and obtain sufficient coverage that will protect your assets should you ever find yourself facing a lawsuit. If necessary, meet with a licensed and qualified financial and/or insurance professional to find out how much coverage is right for you.

Now, please note these examples only address the “Full Coverage” fallacy from the BI standpoint, which examines situations where you might find yourself being sued for causing bodily injury. In my next installment we’ll chat about what is known as underinsured/uninsured motorist coverage (commonly known as UM coverage), which is insurance that will protect YOU if you’re injured at the hands of an uninsured/underinsured driver.

Until then..
Have fun. Be good. Be safe. Be educated.

Mike Santana

Continue reading "The "Full Coverage" Fallacy" »

Yesterday Governor Scott signed the new insurance "reform" package into law. Our poor insurance companies have already adopted Governor Scott's slogan: "Let's get to work!"......jacking up the premiums.

I just heard from a friend, although she's had no claims, her bill for her homeowner's insurance just arrived, and it has doubled!

Welcome to the new Florida insuarance DEform...stand by everyone.

While people are delaying care, and not getting tests that they need to avoid problems.

When did your health insurance premiums go down? When did your deductible and co-payment amount shring in the past few years? You know the answer......never.

I'll tell you what I think, they need to keep overcharging premiums to fund their lobbying, and their political efforts, (the tea party is real expensive to fund, you know....), because the national health reform act is bad for their business, but better for you and your family.

Here's a link to a terrific New York Times article: http://www.nytimes.com/2011/05/14/business/14health.html?nl=todaysheadlines&emc=tha2

In this past legislative session, the Florida Legislature once again "reformed" parts of the insurance code. Reform, for the benefit of our poor insurance companies........

Anyway, there is one part of the new law that I think needs mention. The statute of limitations to file a lawsuit if a homeowner has a claim that stems from a sinkhole (yes you non-Floridians, in Florida, a sinkhole can just open up and swallow your house!). Has been shortened from 5 years to 2 years. A lawsuit arising from a claim for a hurricane loss must now be brought within 3 years after the hurricane

Also, the statute of limitations for lawsuits arising from other types of insurance breach of contract claims will now be 5 years from the date of the damage, where it was formerly 5 years from the date that the insurance company denied the claim in whole or in part.

These statute of limitations changes will definitely affect many folks who, although more and more frustrated they don't want to hire and attorney, nor a public adjuster. (I don't blame them when it comes to public adjusters, I can tell you stories......).

Those folks will jerk around with the insurance company, and the statute of limitations to go to court can run without them ever knowing it.

This video really isn't new (just new to me and perhaps to you). It was played to the Sony annual shareholder meeting in 2009.

It is a terrific and thought provoking presentation on how things have changed with increasing rapidity, and how much information is being added and communicated. As a note, it demonstrates how outdated it is in some ways.......note the mention of Myspace...
http://www.innovationamerica.us/index.php/innovation-daily/2024-what-sony-played-at-its-annual-shareholder-meeting-this-year

I wish that I had a nickel for every time in the past almost 29 years of practicing law someone came to see me complaining that they had been the victim of a fraud.

The old adage: "If it sounds too good to be true, it is!" applies more than ever now.

Ponzi schemes are not only run by big criminals like Madoff, but by small time crooks as well.

Just because the person who approaches you appears to be a highly devout and religious person, doesn't mean that he or she isn't scamming you.

Here's a link to an excellent article that was in the Washington Post the other day:

Continue reading "If you think that you could never be caught in a Ponzi scheme..." »

The media and politicians tell us about a financial crisis, a terrorism crisis, a debt crisis, a crisis of confidence, blah, blah, blah.

I spent some time today in one of the foreclosure divisions in the Palm Beach County courthouse. We have recently filed several class actions dealing with the massive overcharging of force placed insurance policies. Here's a link to an excellent news story about force placed insurance: http://money.msn.com/money-video?vid=3d0229ae-bd3a-d97b-573d-b568aa0b6ac1

It's sad, an army of lawyers representing the banks and mortgage companies, and folks losing their homes, and the paper trail is no where. The overcharging and overreaching is status quo.

I think what we really have is a "Justice Crisis", where underfunded, and understaffed courts are trying to cope with a mass of corporate wrongdoing, with virtually no penalty. After all, other than Madoff and a very few individuals, the Government doesn't seem interested in prosecuting these corporate criminals. I imagine that it is poor politics to prosecute the corporate donors...

This brings to mind a quote from a 19th Century U.S. Senator, talking about corporations 150 years ago:

"Corporations are formed to do what individuals would be ashamed to do"

More to follow next week.

Today is the 100th anniversary of the fire that killed 146 young women and girls in 18 minutes. In the aftermath of the tragedy, where employers “compensated” the victims families by paying them $10.00 per dead person, the workers compensation laws in the United States was born. Francis Perkins, who as a young woman, watched the girls jumping from the ninth floor, Became the First woman Secretary of Labor under Roosevelt, and started the Occupational Health and Safety board.

Here is a link to learn about it: http://www.ilr.cornell.edu/trianglefire/

There is an old saying about the importance of studying and learning from history, that if you don't, you are bound to repeat it. Now, 100 years later, the crazies in political office, hacks for their campaign donors and patrons, are intent on further eliminating regulatory oversight, and removing private civil justice protections. Read, heed, and understand what is happening all around you.....