by Liz Daube
Staff Writer
As Florida legislators and lobbyists prepare for next week’s special session on the state insurance market, trial attorneys from all over the state are readying themselves, as well.
Jacksonville trial attorney Tom Edwards said he plans to leave for Tallahassee next week, along with many other members of the Florida Justice Association (FJA). Edwards is the treasurer of the organization formerly known as the Academy of Florida Trial Lawyers. He said the group of attorneys will lobby legislators about insurance issues on behalf of consumers.
“It’s important to us because it’s important to everyone in the state right now,” said Edwards. “What we hope to accomplish is an appropriate result for the consumers in the state.”
He said FJA members speak out about a variety of legislative issues, but the property and casualty insurance issue is of particular interest because it affects so many people, particularly small business owners.
Gov. Charlie Crist, Senate President Ken Pruitt and House Speaker Marco Rubio called the special session, which begins Jan. 16, to develop a reform plan that aims to increase competition among insurance providers and lower rates for consumers. Crist said the special session was needed because Floridians have suffered from “skyrocketing rates and canceled insurance policies” since the destructive hurricane seasons of 2004 and 2005.
Edwards said several legislative reforms that aimed to help the insurance companies’ finances after the hurricanes – and subsequently lower rates for consumers – have meant “there really is not a meaningful benefit to having the insurance.” He said some of those recent laws make insurance companies’ disaster-payment responsibilities confusing for consumers, who are sometimes left financially devastated and homeless after a storm.
“Laws allow a wind [insurance] carrier to come in and, when there is a total loss caused by hurricane, try to parse out how much damage was caused by wind versus water damage,” said Edwards. “In most instances, it’s almost impossible to determine.
“Your flood carrier then comes in and says, ‘No, that was the wind.’ And the consumer is left with nothing. They’re left with no place to live and the insurance only paying $50,000 [of a $200,000 home value] because of storm surge ... There are still blue [tarp-covered] roofs in central and southern Florida.”
Gary Landry, vice president of the Florida Insurance Council, said his agency’s more intense lobbying work began last fall. He said insurers understand the hardships consumers have endured, but insurance providers can’t be blamed for the rising costs.
“The culprit here is hurricanes,” said Landry. “Unfortunately, because of the situations with hurricanes we’ve had, the free market has given us premiums many people can no longer afford.”
Landry said his group is taking a careful approach to the special session.
“We have to be cautious of what we do and think through every idea that is suggested and think about the longterm effects it will have on Florida and the market,” he said. “We need a viable insurance market. Otherwise, state taxpayers may take on the risk of the entire burden.”
Edwards said his group wants to see more government oversight for rate increases, a more competitive insurance market and amendments to recent statutes. He said Jacksonville trial attorneys haven’t had to deal with many hurricane-related law suits, but his colleagues in the southern part of the state have built up “information and accurate stories of how certain laws create problems.” The trial attorneys plan to talk with legislators and provide them with information for their draft bills.
“We end up seeing them [consumers] as they wind their way through various aspects of the system, as they lose their retirement and savings and homes,” said Edwards. “It’s something that we deal with daily. This is not a pocketbook issue the way malpractice or auto issues would be, but we need to [lobby] because not many people are fighting with big money interests.”