Barry Gilway


Please call Lee from Acentria Insurance at 954-351-1960 or cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial, & life, group & Financial products as well.

Citizens Property Insurance Corp., the Florida state-run insurer of last resort, is anticipating its policyholder count will increase in 2018 for the first time since its efforts to shed policies through depopulation began several years ago.

As it moves on from a tumultuous 2017 that included a major hurricane and ongoing assignment of benefits (AOB) abuse, Citizens executives said at its board of governors meeting last week that it anticipates more than 60,000 policyholders from private insurance companies will return to the state-run insurer of last resort.

Citizens President, CEO and Executive Director Barry Gilway told the board at the Dec. 13 meeting that the Florida domestic insurance market’s combined ratio and surplus have declined, and the majority of Florida insurers experienced negative net income for the first time in five years.

While the active 2017 storm season is one factor contributing to deteriorating insurer results, the biggest factor is increasing costs from nonweather-related losses and AOB abuse fueled by attorneys and contractors. The industry has started taking steps to limit losses from AOB, with some insurers not writing in certain areas of the state where it is the rampant.

Citizens, which is statutorily obligated to offer coverage when the private market will not, will have to pick up these policies. Gilway said he expects Citizens will see significantly less depopulation next year.

“When the market is healthy, and companies are making money, depopulation soars; when it becomes negative, depopulation drops. We are not expecting a lot of depopulation next year,” Gilway said.

Instead, Gilway said, Citizens is expecting its overall policy count of 442,000 – the lowest it has been since the company was formed in 2002 – to climb back up to around 500,000. Citizens policy count reached a high of 1.4 million before the depopulation program began in 2012.

Please read the full article below;

https://www.insurancejournal.com/news/southeast/2017/12/20/474844.htm

Advertisements

Please call us at our new contact phone number 954-735-5500 for free quotes on Home Insurance, Auto, Flood, Private Flood,  Business & Commercial, & life & Financial products as well. My new e-mail is lee.gorodetsky@acentria.com and my new title is the VP of personal lines marketing.

The 2017 hurricane season begins June 1, yet the Atlantic Ocean already has produced Tropical Storm Arlene, which was only the second named storm on record to have formed in April. Citizens urges you to prepare for this year’s hurricane season and provides the following information to assist you and your staff in preparing.

 

14-17 named storms are expected and 7-9 could become hurricanes as well as 3 major Hurricanes. 2-3 could possibly have a US landfall so please be prepared!!

Storm Watch/Warning Issuance Changes
Due to advances in forecasting, beginning in 2017, the National Weather Service (NWS) may issue advisories, watches and warnings for weather disturbances that are not yet a tropical cyclone but pose a threat of bringing tropical storm or hurricane conditions to land areas within 48 hours. Previously, NWS was not permitted to issue watches and/or warnings until after a tropical cyclone officially had formed.

Customer Outreach Citizens has the following brochures for your Citizens policyholders:

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial & Life & Financial products as well.

A bill backed by the insurance industry to curb the abuse of Florida’s one-way attorney fee statute in assignment of benefit claims has stalled as lawmakers opted to instead advance what the insurance industry and the state’s regulator feel is a less effective measure.

The legislative maneuver sparked criticism by the Wall Street Journal of the Senate chair of the key committee, who in turn has accused the industry of mounting a “smear” campaign against her.

The industry setback came on Monday when the Senate Banking and Insurance Committee, chaired by Senate President Pro Tempore Anitere Flores (R-Miami, Monroe), left Senate Bill 1038 off its agenda. This bill, drafted by the Florida Office of Insurance Regulation with support from the state-run insurer Citizens Property Insurance Corp. and other industry groups, seeks to keep AOB consumer protections in place, but take away the incentive – the one-way attorney fee – that the industry claims is driving abuse by unregulated water mitigation, remediation and roofing contractors typically working with attorney groups

The insurance industry had tempered its expectations of getting the legislation passed because of lobbying by trial attorneys and unlicensed contractors, who the industry says are inflating water damage claims and filing frivolous lawsuits. Under Florida’s current one-way attorney fee statute, policyholders suing their insurer over a claim dispute can recover their attorney’s fees if the insurer is shown to have underpaid the claim, by any amount.

“If you look at the trends of water claims over the last five years – it’s alarming,” Florida Insurance Commissioner David Altmaier told Insurance Journal in February. “Absent any kind of reforms to address those trends, we could be seeing rate increases of 10 percent a year just to keep up.”

Please enjoy the full article below.

http://www.insurancejournal.com/news/southeast/2017/04/05/446884.htm

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial policies & Life & Financial products as well.

Citizens Property Insurance Corp. will post a net loss for 2016, its first loss in more than a decade, as water loss claims, assignment of benefit (AOB) abuse and litigation costs increasingly impact the company’s bottom line, according to a statement from the Florida state-run insurer.

The Citizens Board of Governors was told Wednesday the state’s insurer of last resort will post a $27.1 million net loss for 2016, its first since 2005. The company said the loss comes despite minimal damage from H

Without significant statutory reforms, Citizens will be forced to pass those higher costs on to its customers in the form of higher rates for the foreseeable future, said Citizens Board of Governors Chairman Chris Gardner.

“Every year, we rely on standardized, accepted actuarial principles to set our rates,” Gardner said “Last year, the same principles that provided rate decreases to our customers in recent years translated into hikes for 84 percent of our policyholders. Without legislative changes, that trend will continue.”

hurricane Matthew, the first major hurricane to impact Florida in 11 years

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/03/29/446071.htm

 

This will affect Fort Lauderdale &  S. Florida and since we are in La Nina years, which is also very likely to occur for the next 3-5 years. Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial policies and Life & Financial products as well.

Ratings company Demotech is holding off on issuing large-scale ratings downgrades of Florida property insurers for now, after a number of insurers heeded its warning of last month about the effects of assignment of benefits abuse and state court rulings by boosting their claims reserves and policyholder surplus.

After warning in February that at least 10 to 15 Florida property/casualty carriers would face downgrades if they did not take immediate action to shore up their reserves in light of deteriorating conditions in the state, Demotech said March 16 that, after working with insurers to make adjustments, it slightly downgraded only one carrier

The ratings firm said it is also monitoring three insurers — Prepared, Mount Beacon and Elements— that have been or are in the process of being sold as a result of the situation in Florida.

Joseph Petrelli, president and CEO of Ohio-based Demotech, which rates 57 carriers in Florida and 397 nationwide, said his company worked individually with companies in Florida to analyze their financial standing, strengthen their claims reserves, and provide other guidance on what they could do to avoid a ratings downgrade. The result has been $355 million in additional reserves and policyholder surplus among the Florida carriers it rates, Petrelli said.

Demotech said last month that Florida’s property insurers are facing an “uncertain operating environment” as a result of the escalating AOB crisis that has caused the number of litigated water loss claims to skyrocket over the past few years, particularly for the state-run insurer Citizens.

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/03/17/444778.htm

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial & Life & Financial products as well.

Florida now has legislation backed by the top Florida insurance regulator and the industry that promises to curtail homeowners insurance abuse under the assignment of benefits (AOB) feature.

Senate Bill 1038, filed Feb. 17 by State Sen. Dorothy Hukill and co-sponsored by Sen. Kathleen Passidomo, seeks to clarify the intent of the assignment of benefits provision for policyholders and limit the scope of benefits provided to those other than the named insured on the policy

The assignment of benefits bill would also instill specified conditions for assignment agreements to be valid. The bill stipulates that an assignment agreement will not be valid unless it meets the following conditions:

  • Agreement is in writing and is executed by all named insureds
  • Allows insureds to rescind the assignment agreement within seven business days without penalty
  • Requires the assignee to provide a copy of the assigned agreement to the insured no later than three business days after the agreement is executed;
  • And includes a written, itemized, per-unit cost estimate of the work to be performed by the assignee.

Other stipulations of the bill include: prohibiting certain provisions in an assignment agreement; specifying requirements for an assignee or transferee; and requiring an assignee to meet certain requirements as a condition precedent to filing suit under a policy.

Under Florida’s current one-way attorney fee statute, policyholders suing their insurer over a claim dispute can recover their attorney’s fees if the insurer is shown to have underpaid the claim, by any amount. The goal of the bill is to keep the assignment of benefits consumer protection in place, but take away the incentive – the one-way attorney fee – that the industry claims is driving abuse by assignees, who have included unregulated water mitigation, remediation and roofing contractors typically working with attorney groups.

If passed by the Legislature and signed into law, the bill would become effective July 1, 2017

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/02/28/443010.htm

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial, & Life & financial products as well.

Florida’s insurance industry will apply significant pressure on lawmakers to pass assignments of benefit (AOB) reform in the upcoming legislative session as consumers face rate increases and a looming coverage availability crisis due to serious and costly abuse of the policyholder benefit.

While the industry seems to finally have reached a consensus on what is fueling the widespread AOB abuse and how to fix it, the question of whether the Florida Legislature will agree to act on the industry’s recommendations remains to be seen

The Florida Office of Insurance Regulation (OIR) and Citizens Property Insurance Corp., as well as other stakeholders, are working together with Florida lawmakers to introduce a bill for the 2017 legislative session, which begins on March 7. The goal is to keep the assignment of benefits consumer protection in place, but take away the incentive that is driving the abuse by assignees, who have included attorney groups, unregulated water mitigation, remediation, and roofing contractors.

The unanimous feeling is that Florida’s one-way attorney fee statute is the main driver of the problem, and that’s what the industry says needs to be addressed by legislation in the upcoming session. Under Florida’s current law, policyholders suing their insurer over a claim dispute can recover their attorney’s fees if the insurer is shown to have underpaid the claim, by any amount.

The industry says third party contractors and attorneys have been abusing the policyholder benefit, particularly for water losses, to inflate claims and fees

 

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/02/15/441784.htm

Next Page »