Moreover, it permits insurers to restrict their dangerous religion legal responsibility when there are a number of claimants in a single motion by paying the overall coverage quantity earlier than negotiations for a settlement start, along with eliminating one-way legal professional’s charges and charge multipliers.
In a tweet about these reforms, DeSantis mentioned Florida has lengthy been a “judicial hellhole” and that the modifications are essential to “defend Floridians and our economic system from predatory lawsuits.”
Florida has lengthy been often known as a “judicial hellhole” as a result of authorized system’s incentivizing of extreme and frivolous lawsuits.
As we speak, I signed a sequence of reforms that may defend Floridians and our economic system from predatory lawsuits. pic.twitter.com/SEXUoookuh
— Ron DeSantis (@GovRonDeSantis) March 24, 2023
A number of insurance coverage business gamers have additionally welcomed the reforms, saying that the brand new legislation will assist tackle Florida’s insurance coverage affordability points.
“By eliminating one-way legal professional charges and charge multipliers for all strains of insurance coverage, modernizing Florida’s dangerous religion legislation, and defending small companies from paying exorbitant damages, the reforms enacted will assist restore equity to Florida’s authorized system, cut back the extreme variety of frivolous lawsuits being filed, and in the end assist profit shoppers by growing the provision and affordability of insurance coverage over time,” a press release from American Property Casualty Insurance coverage Affiliation (APCIA) learn.
Neil Alldredge, president and CEO of the Nationwide Affiliation of Mutual Insurance coverage Corporations (NAMIC), moreover acknowledged that the reforms will deliver “much-needed stability” that’s essential to the “long-term aim of reaching a wholesome and aggressive insurance coverage market.”
In the meantime, Louisiana insurance coverage commissioner Jim Donelon mentioned the potential for introducing comparable reforms within the state and mentioned he would “completely” assist a proposal focusing on insurance coverage lawsuit abuse, in response to a report by the Louisiana Illuminator.
What are your ideas on Florida’s transfer to deal with insurance coverage lawsuit abuse story? Be at liberty to remark beneath.
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