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Altmaier urges moves to curb property insurance lawsuits
Pointing to a “disparity” between Florida and other states in litigation, Insurance Commissioner David Altmaier is urging lawmakers to consider a series of steps to restrict property-insurance lawsuits. Altmaier sent a five-page letter this month to House Commerce Chairman Blaise Ingoglia, R-Spring Hill, outlining potential ways to curb litigation, including limiting fees paid to attorneys who represent policyholders.
As an example, Altmaier urged a change to address what are known as contingency risk multipliers. Florida allows plaintiffs to collect attorney fees when they prevail in cases against insurance companies, with the amounts typically set by a calculation of the number of hours spent on a case and a reasonable hourly rate. But courts also can approve contingency risk multipliers that increase the fees.
Under a bill (SB 76) passed by the Senate last week, contingency risk multipliers could only be awarded “in a rare and exceptional circumstance with evidence that competent counsel could not be retained in a reasonable manner.” A House property-insurance bill (HB 305) does not include such a limit. But in the letter, Altmaier urged the House to consider a “rare and exceptional” legal framework for the multipliers.
The insurance industry is lobbying to limit attorney fees, arguing that they lead to increased litigation and higher insurance costs. State regulators last year approved dozens of double-digit rate increases for insurers. “These solutions could substantially reduce the litigation associated with claims, bringing more certainty into Florida’s property insurance market,” Altmaier said in the letter dated April 2. “Ultimately this will provide more stability in the market and more rate stability for consumers.”
The Office of Insurance Regulation released the letter Monday in an email titled “notice to interested parties.”
