SB 122 – Relating to Agreements Between Service Providers and Consumers

On Monday, March 18, CS/SB 122 by Senator Doug Broxson (R-Pensacola) was heard before the Senate Judiciary Committee and was reported favorably with 5 yeas and 1 nay. AIF stood in support of this legislation.

The bill states that a post-loss assignment of benefits (AOB) under a property insurance policy or under the comprehensive or combined additional coverage of a motor vehicle insurance policy for coverage of windshield damage is only valid if:

• A copy of the agreement is provided to the consumer's insurer within 3 business days after the agreement's execution;
• The agreement may be rescinded within 14 days of execution or at least 30 days after the execution if the service provider has not begun substantial work on the property;
• The agreement does not impose any fee or penalty for rescinding the agreement;
• The agreement does not assign more than $500, if related to repairing a windshield under a motor vehicle insurance policy’s comprehensive or combined additional coverage;
• The agreement does not transfer a greater right to attorney fees than that created by the bill;
• The agreement does not prevent or inhibit an insurer from communicating with the consumer at any time; and
• The agreement relates only to work performed or to be performed by the service provider.
  
  

Additionally, this bill states that if a consumer acts under urgent or emergency circumstances to protect property from damage and enters into an agreement with a service provider, the service provider may only contract for the right to payment for the work necessary to protect and prevent additional damage to the property, and post-loss claims received may not be in excess of :

• Under a property insurance policy, $3,000 or 1 percent of the Coverage A limit under such policy.
• Under a motor vehicle insurance policy for windshield damage, in excess of $500.

The bill requires an assignee and any subcontractor of the assignee to waive any and all claims against a consumer.

SB 122 will now move to the Senate Rules Committee.

AIF SUPPORTS reforms to the assignment of benefits process to protect consumers against AOB abuses.

SB 1140 – Relating to Attorney Fees and Costs

On Monday, March 18, SB 1140 by Senator Travis Hutson (R-Palm Coast) was heard before the Senate Judiciary Committee and was reported favorably with 4 yeas and 2 nays. AIF stood in support of this legislation.

This bill authorizes the payment of attorney fees and costs to a party challenging the adoption or enforcement of a local government ordinance on preemption grounds if a court finds that the subject of the ordinance has been preempted by the Constitution or State law. However, a local government may avoid liability for attorney fees and costs if the challenged ordinance is repealed or withdrawn within 21 days of either (1) receiving written notice of the claim or (2) the filing of a motion for attorney fees, whichever is earlier.

SB 1140 will now move to the Senate Community Affairs Committee.

AIF supports legislation that holds liable local governments that attempt to violate federal or state preemptions.

SB 1180 – Relating to Consumer Protections from Nonmedical Prescription Drug Formularies

On Monday, March 18, SB 1180 by Senator Debbie Mayfield (R-Melbourne) was heard before the Senate Banking and Insurance Committee and was reported favorably with 6 yeas and 0 nays AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, spoke in opposition to this legislation.

A major driver of health care costs is the rising cost of medicines. Drug companies raise the prices of both new and old medicines at will. No government body—not the Federal Trade Commission, not the Food and Drug Administration, and not the Centers for Medicare & Medicaid Services—have rules or laws that dictate or restrict the price a pharmaceutical company can set for a drug - and in most cases, there’s nothing that restricts how much a drug company can raise that price.

This bill would eliminate the only current force to counter the price increases on pharmaceuticals – the threat of losing insurance coverage, which helps push back on arbitrary price hikes. Handcuffing the negotiators who work hard to make sure drugs are affordable is bad public policy and will help make health insurance even more unaffordable.

SB 1180 will now move to the Senate Health Policy Committee.

AIF opposes legislation that removes cost controls and increases healthcare costs for Floridians.