Florida Insurers Have Until Aug. 1 to Show They Have Proper Claims Manuals, OIR Says

Florida property insurers now have a week to attest that they have and use claims-handling manuals that reflect industry practices and standards, the state Office of Insurance Regulation said in a bulletin.

By Aug. 1, insurance carriers must submit a form attesting that they have created manuals that meet the requirements of Florida insurance statutes and the “usual and customary industry claims-handling practices,” the bulletin notes. Insurers must also state that they have adequate resources to meet the requirements, including after a natural disaster.

The form can be accessed through the insurance regulatory filing system portal on the OIR’s website.

It’s all the result of Senate Bill 7052, the Insurer Accountability Act, signed into law in May. OIR this month approved an emergency rule implementing some of the requirements of the law.

“Floridians deserve fair and reliable claims-handling practices from their insurance company, especially after a catastrophic event or natural disaster,” Insurance Commissioner Michael Yaworsky said in a statement. “As we continue through hurricane season, OIR expects insurers to have a claims-handling manual which complies with the required provisions of Florida law and be prepared to do everything possible to respond to the needs of affected Floridians following a catastrophic event.”

Similar forms should be filed in coming years by May 1. Regulators may request copies of the manuals. If insurers fail to meet the expectations, OIR may use its authority to protect policyholders, Yaworsky said. He did not say what steps the office may take. Questions about the manuals and forms can be sent via email to Claims-HandlingManuals@floir.com.

Claims handling by some insurers was put under the spotlight after three independent adjusters testified in December 2022 that a number of carriers and their hired adjusting firms had deceptively altered damage estimates. The insurers made it look like the adjusters, hired by the carriers on a freelance basis, had found little damage to homes, the adjusters said.

Florida officials have said that regulators are investigating, but the adjusters said they have heard little from the state Department of Financial Services. They also have said that the estimate-doctoring practice has diminished, and some carriers have stopped altering their reports in recent months.