>> PROPERTY INSURANCE IN FLORIDA IS NOW APPROACHING A CRISIS STAGE.
THE PREMIUMS ARE SKYROCKETING,
CLAIMS ARE UP AND AT LEAST FOUR
COMPANIES THAT WRITE THESE
INSURANCE POLICIES HAVE GONE OUT
OF BUSINESS.
>> STARTING TOMORROW STATE
LAWMAKERS WILL BE MEETING IN
TALLAHASSEE SPECIAL SESSION FIVE
DAYS TO TRY TO STRAIGHTEN OUT
THIS INSURANCE MESS.
THE GOVERNOR ACTUALLY PROMISED
SIGNIFICANT REFORM.
HOW POSSIBLE IS THAT IN JUST ONE
WEEK?
WE WANT TO TALK ABOUT THAT WITH
REPRESENTATIVE TOM FABRIZIO,
REPUBLICAN OF MIRAMAR.
HE HAS BEEN SO IN THE WEEDS WITH
A LOT OF THE NEGOTIATIONS
LEADING UP TO THE SESSION.
REPRESENTATIVE FABRIZIO SO GLAD
TO HAVE YOU BACK WITH US TODAY.
>> TOM.
>> THANK YOU SO MUCH, GLENNA AND
MICHAEL.
>> THANK YOU.
YOU WRITE IN TODAY’S "MIAMI
HERALD" IN AN OP ED QUOTE THE
COMPLEX HOME INSURANCE MARKET IS
ON THE VERGE OF COLLAPSE.
SO WHAT WILL YOU AND YOUR FELLOW
LAWMAKERS DO IN THE NEXT FIVE
DAYS TO REBUILD THIS CRITICAL
INDUSTRY AND PROTECT CONSUMERS.
>> RIGHT, THANK YOU SO MUCH,
MICHAEL.
SO AS YOU KNOW, WE’VE HAD QUITE
A FEW INSOLVENCY THIS YEAR AND
ACTUALLY LAST YEAR AS WELL.
CREATING LESS AND LESS, A MARKET
WITH LESS AND LESS INSURANCE
CARRIERS TO PROVIDE COVERAGE FOR
HOMEOWNERS.
THE IDEA AND THE MAIN THRUST OF
EVERYTHING WE’RE WORKING ON IS
TO CREATE A MARKET WHERE WE
COULD WORK TO ULTIMATELY LOWER
HOMEOWNERS INSURANCE PREMIUMS
FOR PROPERTY OWNERS IN FLORIDA.
THAT IS THE IDEA.
>> THAT IS THE IDEA.
BUT HOW DO YOU DO IT WHEN THERE
ARE SO MANY FRAUDULENT CLAIMS
THAT ARE FILED AND THEN LAWYERS
GREETING LAWYERS, I MUST SAY,
ARE YOU A LAWYER, ARE YOU NOT A
GREEDY ONE.
BUT YOU KNOW, WE HAVE LAWYERS
WHO ARE USING THESE FEE
MULTIPLIERS, THEY’RE GETTING
PAID HUGE AMOUNT OF MONEY.
HOW DO YOU DEAL WITH ALL THAT?
>> WELL, I THINK ONE OF THE MAIN
THINGS THAT WE CAN DO ONCE WE
STOPT HEMORRHAGING WHICH I
BELIEVE WE’RE GOING TO GET DONE
WITH A REINSURANCE, POLICY
HOMEOWNER PROGRAM THAT WE WILL
HOPEFULLY GET IN PLACE, ONE
THING THAT WE’RE GOING TO BE
DOING IS LIMITING HOW THAT
ATTORNEY FEE MULTIPLIER IS
APPLIED TO CASES THAT THE
PREVAILING PARTY ATTORNEY FEE
WAS COME INTO PLAY.
AND THAT MULTIPLIER IS, I
BELIEVE, IN MY HUMBLE OPINION,
ONE OF THE BIGGEST CAUSES AND
ONE OF THE BIGGEST MOTIVATING
FACTORS FOR THE FACT THAT WE
HAVE ABOUT THREE QUARTERS OF THE
ENTIRE COUNTRY’S LITIGATION HERE
IN FLORIDA.
AND THAT’S UNFORTUNATELY AN
OBSCENE AMOUNT OF LITIGATION
REGARDING THESE ISSUES.
AND I THINK I BELIEVE THAT THAT
IS ONE OF THE DRIVING FORCES
WITH THE INSOLVENCIES THAT WE’RE
SEEING.
>> YOU KNOW REPRESENTATIVE, THE
FIRST TIME THAT YOU TOLD ME THAT
ABOUT A MONTH AGO, THAT WAS EYE
POPPING TO ME, DID A LITTLE
DIGGING TOO THAT.
BARRY GILLWAY THE HEAD OF
CITIZENS, THE INSURER OF LAST
RESORT ACTUALLY AGREES WITH YOU,
TALKS ALL ABOUT RUNAWAY
LITIGATION AS BEING THE COST
DRIVER AND I SEE THAT ONE OF THE
BILLS, ALL OF THE 11th HOUR
BILLS, TRUTHFULLY THEY PROFILED
SO LATE, STILL TRYING TO DIGEST
THEM BUT ONE OF THEM REALLY DOES
ADDRESS THE INSPECTIONS
OF-- ROOFS BEING NEEDED OR NEW
OR REPAIRED, THE WHOLE ROOF
ISSUE IS REALLY WHAT IS DRIVING,
ACCORDING TO YOU AND THOSE IN
THE KNOW, THESE LITIGATIONS,
SETTLEMENTS, HIGH DOLLAR LAW
PROCESSEES DRIVING UP THE
PREMIUMS.
AND SINCE THEN I’VE SEEN BECAUSE
NOW I KNOW TO LOOK FOR THEM,
I’VE SEEN THESE ADVERTISEMENTS
OF CONTRACTORS AND ROOFING
COMPANIES ACTUALLY ADVERTISING
HEY, LET US COME LOOK AT YOUR
ROOF AND SEE IF WE CAN REPLACE
IT.
HOW DO YOU GET AROUND THAT?
>> WELL, SO, WE NEVER WANT TO
INFRINGE ON ANYBODY’S FIRST
AMENDMENT RIGHTS.
THAT IS CRITICALLY IMPORTANT.
BUT IN 2021 WE PASSED SENATE
BILL 76 WHICH ATTEMPTED TO
ADDRESS THAT ISSUE OF ROOF CLAIM
SOL IS TAITION.
THAT IS FARTHER OF SENATE BILL
76 WAS STOPPED BY THE COURTS IN
LARGE PART AND WORKED WITH A
BILL PACKAGE THAT WE’RE MOVING
FORWARD WITH THIS COMING WEEK.
WE HOPE TO CLEAN UP SOME OF THE
ISSUES THAT THE COURTS HAVE
TROUBLE WITH.
AND REQUIRE THAT THERE BE
NOTICES PUT ON ANY KIND OF
SOLICITATION, ADVERTISEMENT AND
THINGS OF THAT NATURE.
WE’VE ALSO, WE’RE ALSO LOOKING
TO HARDEN AND CREATE CRIMINAL
LAWS FOR FOLKS THAT TRY TO
CREATE FALSE CLAIMS AND TRY TO
CREATE MISLEADING CLAIMS.
WHICH IS INSURANCE FRAUD.
AND WE CAN’T STAND FOR INSURANCE
FRAUD, ESPECIALLY WHEN INSURANCE
FRAUD IS PART OF THE PROBLEM
WHICH IS CAUSING THESE PREMIUMS
TO GUP FOR HOMEOWNERS.
AND IT’S CAUSING
THE-- UNDERWRITING GUIDELINES TO
REDUCE COVERAGE.
WE WANT TO HAVE HOMEOWNERS HAVE
REASONABLY PRICED PREMIUMS, A
COMPETITIVE PREMIUM AND WE WANT
TO BE ABLE TO GIVE THEM AS MUCH
COVERAGE AS THEY REQUIRE.
AND BUT WE CANNOT ALLOW FOLKS TO
GAME THE SYSTEM.
WE CAN’T ALLOW THAT, THAT IS
JUST ABSOLUTELY UNPERMITTED AND
THAT’S ONE OF THE THINGS THAT
WE’RE GOING TO DO TO COMBAT SOME
OF THESE FRAUDULENT ROOF CLAIMS.
>> I FEEL LIKE, I WANT TO THROW
OUT THERE THAT I HAVE CALLED A
COUPLE OF ATTORNEYS WHO DO THIS,
TO FIND OUT ABOUT THIS, AND ONE
IN PARTICULAR WHO IS BASED IN
MIAMI DADE WHO ACTUALLY HAS THE
DISTINCTION OF FILING THE MOST
CLAIMS IN THE STATE.
AND THEY, HE AND THEY ARE VERY
ADAMANT THAT THEY FILE CLAIMS
THAT ARE LEGITIMATE AND THE
FINGER POINTING IS SOMETHING
THAT THEY ARE REALLY OPPOSING.
I JUST WANTED TO THROW THAT OUT
THERE.
>> WELL LOOKINGS I’M NOT
POINTING FINGERS AT ANYBODY, ANY
ONE PERSON IN PARTICULAR.
BUT UNFORTUNATELY THERE ARE
FOLKS WHO ARE SOLICITYING ROOF
CLAIMS.
THERE ARE CLAIMS THAT HAVE, THAT
COME ACROSS THAT ARE NOT MERIT
ORIOUS.
THERE ARE CLAIMS THAT ARE
EXPANDED BEYOND THE SCOPE OF
WHAT THE FACTS SUPPORT.
HOWEVER THAT’S NOT TO SAY THAT
THERE HAVE ALSO BEEN INSURANCE
CARRIERS THAT HAVEN’T PAID
CLAIMS THAT ARE MERIT ORIOUS.
THEY HAVE TO PAY THOSE CLAIMS AS
WELL IT IS A BALANCED ISSUE.
ALL PARTIES NEED TO FALL IN LINE
BUT WHAT SIN CEDABLY IMPORTANT
TO TAKE AWAY FROM ALL THIS RIGHT
NOW IS THAT WE ARE FACING
INSURANCE CARRIERS GOING
IN-- SOLVENT.
MORE INSURANCE CARRIERS LIKELY
TO BE GOING INSOL VEBT IF WE
DON’T PASS THIS LEGISLATION, NOW
ON JUNE 1, STARTS THE HURRICANE
SEASON.
WE NEED TO GET THIS GOING SO
MORE POLICY HOLDERS DON’T FALL
INTO-- AND WE HAVE A V A HEALTHY
INSURANCE MARKET GOING FORWARD.
>> TORM, AS YOU MENTIONED
EARLIER, CITIZENS PROPERTY
INSURANCE IS SUPPOSED TO BE THE
INSURER OF LAST RESORT.
BUT AS THESE OTHER COMPANIES
HAVE GONE INSOLVENT, MOST OF
THEIR CLIENTS HAVE GONE ON TO
CITIZENS, AND THEY ARE ABOUT TO
REACH ONE MILLION CLIENTS, ONE
MILLION CUSTOMERS AND DO THEY
HAVE ENOUGH MONEY.
I MEAN IF GOD FORBID FLORIDA HAS
ANOTHER HURRICANE ANDREW, IS
THERE ENOUGH MONEY IN THE
CATASTROPHE FUND TO COVER THE
CLAIMS THAT WOULD RESULT?
>> SO AS YOU MENTIONED, CITIZENS
IS THE INSURANCE CARRIER OF LAST
RESORT IN FLORIDA, IT MEANS IT
IS THE RESIDUAL CARRIER, IT’S
CREATED BY THE FLORIDA STATUTE T
IS NOT AN INSURANCE COMPANY LIKE
STATE FARM OR UNIVERSAL OR ANY
OF THE OTHER CARRIERS IN THE
STATE OF FLORIDA.
IT’S PART OF THE FLORIDA
GOVERNMENT.
AND GOING BEYOND A MILLION
POLICIES IS CRITICALLY, THAT IS
A VERY IMPORTANT NUMBER FOR US
TO KEEP IN MIND BECAUSE IF WE DO
HAVE A TERRIBLE STORM THAT COMES
UP THE COAST AND GOD FORBID
OCCURS AND CREATES A HUGE
CATASTROPHE, CITIZENS MAY HAVE
TO ASSESS ALL OTHER HOMEOWNERS
INSURANCE POLICIES BY OTHER
CARRIERS.
NOT ONLY HOMEOWNERS INSURANCE
POLICIES, THEY WOULD HAVE TO
ASSESS OTHER COMMERCIAL GENERAL
LIABILITY POLICIES AND OTHER
AUTO POLICIES AND PAY THE CLAIMS
OF THE LOSS THAT CITIZENS WOULD
HAVE TO COVER AT THAT POINT.
SO WHAT IS IN THE BEST INTEREST
OF THE STATE OF FLORIDA IS TO
HAVE A HEALTHY INSURANCE MARKET
WITH PRIVATE CAPITAL COMING INTO
FLORIDA TO UNDERWRITE THAT RISK
AS OCCURS IN THE OTHER 49
STATES.
AND I THINK WE CAN GET THERE.
I BELIEVE THAT THE POLICIES IN
THE LEGISLATION PACKAGE THAT
WE’RE LOOKING AT GOING INTO THIS
SPECIAL SESSION WILL BY AND
LARGE DO THAT.
IS IT A PANACEA?
I CAN’T TELL TU IS BUT I THINK
IT’S A HECK OF A STEP FORWARD TO
GETTING THE MARKET, GETTING THE
INSURANCE MARKET IN FLORIDA IN A
CONDITION WHERE PREMIUMS WILL
ULTIMATELY COME DOWN FOR
FLORIDIANS.
>> YOU KNOW, THAT WAS ACTUALLY
GOING TO BE MY NEXT QUESTION
BECAUSE THERE IS NO WAY OF
GETTING AROUND IT.
THIS WHOLE INDUSTRY TO
UNDERSTAND IT ESPECIALLY FOR
LAYPEOPLE IS SO COMPLICATED AND
SO MANY MOVING PARTS.
AND THERE ARE THE HELP OF THE
INSURERS IS SUCH A BIG COMPONENT
AS ARE YOU JUST TALKING ABOUT.
WHATEVER HAPPENED IT SOUNDS LIKE
A FORE GONE CONCLUSION THAT
HOMEOWNERS, PROPERTY OWNERS, BY
DEFAULT DOWN THE LINE THE
RENTERS TOO, EVERYONE IS
AFFECTED, WILL MOST LIKELY BE
PAYING MORE INTO, ON THE BACK
END, FOR DAMAGES, ABSORBING MORE
OF THE COSTERS IN ORDER TO BRING
DOWN THESE UNAFFORDABLE
SKYROCKETING PREMIUMS.
IS THAT FAIR TO PROJECT, DO YOU
THINK?
>> WELL, THE PACKAGE THAT I’M
LOOKING AT, THE LEGISLATION
PACKAGE THAT I’M LOOKING AT AND
IN PARTICULAR THERE ARE CERTAIN
PROVISIONS WITH REGARD TO THE
REINSURANCE TO ASSIST POLICY
HOLDERS PROGRAM, THAT WOULD
DIRECTLY REQUIRE INSURANCE
CARRIERS THAT AVAIL THEMSELVES
OF THAT.
I THINK $2 BILLION TO REDUCE THE
COSTS OF THEIR REINSURERS THEY
WOULD HAVE TO PASS ON SOME
PERCENTAGE OF THAT REDUCED PRICE
REINSURANCE TO THE CONSUMERS.
SO AND AGAIN OUR GOAL,
ULTIMATELY WITHOUT GETTING TOO
MUCH INTO THE WEEDS HERE IS TO
CREATE A HEALTHY MARKET WHERE
HOMEOWNERS INSURANCE PREMIUMS
WILL BE COMING DOWN IN A MORE
NATURAL WAY AND ONE OF THE
THINGS THAT UNFORTUNATELY WE
HAVE TO DO, BECAUSE WE HAVE
THREE QUARTERS OF THE THE
COUNTRY’S LITIGATION HERE IN
FLORIDA, IS TAKE STEPS TO LEVEL
THE PLAYING FIELD.
AND THOSE, THAT ATTORNEY FEE
MULTIPLIER, THE WAY IT HAS BEEN
APPLIED AND THE WAY IT IS
THREATENED IN MOST CASES,
UNFORTUNATELY S ONE OF THE
THINGS THAT IS ACCELERATING THE
LITIGATION IN FLORIDA.
AND SO HOPEFULLY WE EXPECT THAT
THIS IS GOING TO BRING DOWN
LITIGATION.
I HOPE THAT THIS WILL ATTRACT
TRACT MORE CAPITAL MARKETS TO
THE STATE OF FLORIDA TO
UNDERWRITE INSURANCE AND WILL
ULTIMATELY REDUCE PREMIUMS FOR
HOMEOWNERS.
>> WE HOPE SO.
AND WE HOPE YOU AND YOUR FELLOW
LEGISLATORS SHOW DO GET SOME
SIGNIFICANT REFORM.
THE GOVERNOR PROMISED IT.
WE WILL BE WATCHING WHAT
HAPPENS, TOM, AS ALWAYS, THANKS
FOR YOUR TIME THIS MORNING.
>> GREAT TO HAVE YOU, THANKS.
>> THANK YOU SO MUCH, GLENNA AND