Florida Insurance Commissioner Mike Yaworsky has fined eight insurance companies more than $2 million for violations in how they handled customer claims following Hurricanes Ian and Idalia.
The violations include using improperly appointed adjusters and failing to acknowledge claims in a timely manner. Some companies also failed to provide required disclosure statements and the homeowners claims bill of rights.
In one case, according to state officials, an insurer had error rates over 60% for Hurricane Ian claims and over 80% for Idalia claims. Several companies also failed to pay or deny claims within the required 90 days.
“The role of the property/casualty industry is to be a financial first responder to help their customers recover from catastrophes as quickly as possible. Most Florida insurers acted in this manner following the six hurricanes which struck the state over the past three seasons. The role of the state’s insurance regulator is to ensure insurance carriers follow Florida regulations when handling storm claims. When they don’t, they should be held accountable, which resulted in the fines announced today by Commissioner Yaworksy," said Mark Friedlander with the Insurance Information Institute.
Clear Blue Insurance, American Coastal and American Mobile Insurance each face $400,000 fines, the largest penalties issued.
"As your Chief Financial Officer, I promised to work with OIR to hold insurance companies accountable if they do not uphold the contractual agreement that they sign with their policyholders," said Chief Financial Officer Blaise Ingoglia.
"These fines are proof positive that we are committed to holding them accountable. Floridians can rest assured that I am actively watching insurers, and I will not hesitate to enter the fight on behalf of consumers and policyholders. With peak hurricane season approaching, it is more important than ever to ensure that insurance companies are keeping their promises to their customers."
Yaworsky said his office maintains high standards for insurers operating in the state.
"Capital is pouring in, and the market is stabilizing, but our office holds insurers to high standards," Yaworsky said.
"It is important that consumers have confidence that they are getting what they pay for. The Office of Insurance Regulation stands ready to fulfill oversight duties assigned by the Legislature and make sure Floridians are being treated fairly, especially after hurricanes. Insurer accountability and consumer protection will always take priority—we want companies to thrive, but companies must also be worthy of doing business in our state."
With hurricane season now in full swing, Yaworsky said his market conduct unit is ready to deploy during storms to monitor claims handling. Two more examinations are still pending and could result in additional fines.
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