Florida House Bill H0731

Florida 2024 Regular Session

• Introduced: 12/5/23
• Refer: 12/19/23
• Failed: 3/8/24

Caption

Insurance Claims

Impact

The enactment of HB 731 will amend existing statutes, particularly section 627.0651 and section 817.234 of the Florida Statutes, to ensure that an insured's payment of a deductible does not affect an insurer's payment obligations. This provision is significant because it protects insured individuals from being financially penalized in cases where they may not pay their deductible due to an insurance claim. This change could lead to a more consumer-friendly approach in insurance practices, ultimately benefiting the users of these services.

Summary

House Bill 731, also known as the Transparency in Recoveries Act, streamlines the process regarding insurance claims in Florida. This legislation requires the Office of Insurance Regulation to account for the recovery of funds when reviewing insurance rates. By mandating insurers to report any recovered amounts related to claims, settlements, or judgments, the bill emphasizes transparency in the insurance industry. This move aims to provide clarity on how fund recoveries can influence the rates being set and ensure that rates are fair and equitable.

Contention

Notably, the provisions in HB 731 address concerns surrounding fraudulent practices within the insurance industry. The bill introduces stricter penalties for service providers that engage in fraudulent billing practices and ensures that any attempt to mislead or defraud a claimant could result in criminal charges. There is potential contention around these regulations, as some industry stakeholders may argue that the implementation of such strict measures could negatively impact service providers' operations, while advocates emphasize the need for stronger protections against fraud.