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Tuesday, March 5, 2024

APCIA lauds state’s efforts to rein in third-party litigation funding

APCIA lauds state’s efforts to rein in third-party litigation funding | Insurance coverage Enterprise America

Third-party funding described as a “secretive, unregulated observe”

APCIA lauds state's efforts to rein in third-party litigation funding

Insurance coverage Information

Ryan Smith

The American Property Casualty Insurance coverage Affiliation (APCIA) has lauded the Florida Home of Representatives’ Civil Justice Subcommittee for advancing a client safety invoice.

Home Invoice 1179, the Litigation Funding Safeguards and Transparency Act, would improve transparency in third-party litigation financing, APCIA stated.

“Predatory lawsuit lending takes benefit of susceptible Floridians and permits unknown third events – typically hedge funds or overseas actors – to meddle in and make a mockery of our courtroom system,” stated Logan McFaddin, APCIA vp of state authorities relations. “APCIA commends the Florida Home Civil Justice Subcommittee for taking motion to handle this crucial challenge by supporting HB 1179 at the moment.”

McFaddin stated third-party litigation was a “secretive, unregulated observe” that may hurt shoppers.

“It not solely can go away injured events with little to no award cash due to the exorbitant rates of interest, but in addition enhances the potential of frivolous lawsuits and threatens to drive up the prices of merchandise, companies and insurance coverage throughout Florida,” McFaddin stated. “HB 1179 will convey much-needed transparency to this business whereas defending shoppers and preserving the integrity of our courtroom system.”

“This is a crucial client safety invoice, and APCIA seems to be ahead to persevering with to work with lawmakers to advance it on this session,” he stated.

HB 1179 isn’t the primary Florida laws geared toward curbing insurance coverage litigation. Final yr, state Gov. Ron DeSantis signed into regulation a invoice geared toward lowering frivolous lawsuits in opposition to companies and insurance coverage firms.

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