Insurance bill on fees moves ahead in House

Senate has no plans for action

It looks like South Florida homeowners should brace themselves for another year of property insurance rate hikes.

A legislative bill aimed at driving down costs for insurance companies, and protecting homeowners from endless rate increases, on Tuesday advanced to a final reading in the state House of Representatives.

But its passage would be largely symbolic because there’s no companion bill up for consideration on the final day committees are scheduled to meet in the Senate.

Barring an emergency measure, that guarantees no reform will be enacted for a fifth-straight year to address an issue the insurance industry says is responsible for widespread rate hikes over the past two years.

Still, insurers say House passage would be a major step forward. So far, no claims-abuse reformbill has been adopted by the full chamber of either legislative branch.

“It would represent a pretty significant advance for this issue,” said Michael Carlson, president of the Personal Insurance Federation of Florida. “Itwould be the first timewewould have abill passone chamberwith a realistic attorney fee reform provision included.”

The bill, introduced by Rep. JamesGrant, R-Tampa, would limit plaintiffs attorneys’ ability to collect legal fees from insurers and lead, insurers say, to fewer costly lawsuits and reduced losses for them.

Insurers contend lawsuits have skyrocketed because trial lawyers have discovered how to exploit a law intended to enable property owners to sue their insurer without fear of being forced to pay insurers’ legal costs if they lose.

About a dozen law firms, mostly in South Florida, file hundreds of suits each year after convincing property owners to sign over the right to claim policy ben-