• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Johnson Strategies

Planning, Communications, Advocacy

  • Home
  • The JS Story
  • About JS
    • Mission
    • About Scott
    • Writing
  • Videos
  • Library
    • AOB prior to reforms effective July 1, 2019
    • AOB on and after reforms effective July 1, 2019
    • Citizens
    • Legislative Glossary
    • Government Studies and Reports
    • Miscellaneous Documents
    • Presentations and Powerpoints
  • Links
    • Government
    • Other Helpful Sites
  • Contact
You are here: Home / Advocacy / Let’s Start with a Question…

Let’s Start with a Question…

April 12, 2021 - Opinions by Scott Johnson Leave a Comment

Before I tell you about the most damning information so far regarding the outright assault on Florida’s Homeowners system by a few dozen trial lawyers, you should first know the progress being made to stop them.

Via a bi-partisan (27-13) vote, Florida’s Senate recently approved the solution, SB-76. You can hear the debate on the Florida Channel  by moving to the 3 hours & 7 minute mark.  It’s quite illuminating and for many of you parts of it will be distressing.

Likely you knew the question asked in the title above was rhetorical—“some” trial lawyer’s obviously don’t tell the truth. But at least one has even been elected to the Florida Senate and others, like Chip Merlin, have long incorporated it as part of their “business plan.”  They’re becoming more desperate as their pots of gold wilt beneath an avalanche of fact. (See NOTE #1 below)

You’ve read the data on how Florida’s burgeoning lawsuits smother our property reparations system, turn too many trial lawyers into millionaires and drive rate increases now as high as 80% (see p.1 here)–rates which, according to Senate floor debate if not addressed “…will double over three years.”

The cost of providing residential insurance in Florida is 36% more per year than for carriers in every other catastrophe prone state in the U.S. The James Madison Institute’s Adjunct Scholar Guy Fraker characterized it this way: Florida’s 5.8 million policyholders are paying $487.00 per family into a fund owned by fewer than 2000 trial lawyers. And the state of Florida is accepting the consequential risk exposure at no cost, simply for the opportunity to broker the deal.

Check this chart  showing the heart of the problem isn’t so much with 2,000 lawyers but mostly with the 25 filing almost half of the total suits. (For an explanation of the chart, see: Collapse of an Evil Empire! Part VII-Market Impact)

Now listen to the former lobbyist for trial lawyers, Senator Gary Farmer (D-Fort Lauderdale) as he intentionally levels false accusations on the floor of the Senate.  Without any evident hesitation, a scintilla of proof or conscience, at least three times, he states as fact that Florida insurers are “cooking their books.”

“They are swimming in money” he said and “they move money around.” And “they hide behind trade secrets and they hide behind anti-trust laws to hide so much of this money.” And…the biggest lie of all: “This crisis is flat out manufactured!”

Senator Farmer stated that “Citizens is one of the worst insurance companies in Florida.  They delay and deny, that’s their business model.” Then, publicly and on television, he all but accuses Citizens CEO Barry Gilway of dishonest, perhaps criminal, activity.

It’s sickening and should make you mad! Or maybe just sad.

Perhaps this is why Senator Jim Boyd used the word “slander” referring to Senator Farmer.  At best Senator Farmers’ intentionally false statements reflect someone who, without any facts, has reached a point of desperation.

Fortunately, you can learn the real facts from this blog site and even some media reports, and also by listening to presentations given by Senator Jim Boyd (R-Bradenton) and Senator Jeff Brandes (R-St. Petersburg)–the latter warning that without needed reforms a special session will be called to right the ship.

Don’t expect to hear the truth from Senator Farmer or trial lawyers like Chip Merlin whose millionaire’s gold pot is being removed.  (See NOTE #1 & Guy Fraker’s response to Chip Merlin)

They’ll ignore Commissioner Altmaier’s latest startling revelations—ones that everyone I’ve spoken to believe to be the most damning to any argument that distracts.

For details read the letter from Commissioner David Altmaier to the Chairman of the House Commerce Committee, Representative Blaise Ingoglia (R-Springhill).

The numbers come from the NAIC Market Conduct Annual Statement (MCAS) data calls performed in recent years specifically to illustrate Florida’s litigation challenges.  And, it shows that in 2019 Florida had only 8.16% of all homeowners’ claims opened by insurance companies in the entire U.S. However, in that same year Florida also accounted for 76.45% of all homeowners’ suits opened against insurance companies in the U.S.

And Altmaier states it’s “…not an anomaly…As the chart below depicts, litigation trends in Florida have been consistently many times higher than any other state.”

In fact, Florida residential homeowner lawsuits appear to be proportionally more than 900% higher than the entire rest of the country. And, in direct refutation to the “slander” from Senator Farmer that “Insurance companies aren’t paying their claims” Altmaier states…“When comparing the number of claims closed without payment to total claims closed, Florida trends along with the national average.”

“Florida’s ratio of suits opened to claims closed without payment” he says “is eight times higher than the next highest state at 27.75%.  The state of Connecticut has the second highest ratio of suits opened to claims closed without payment at 3.4%.  The next highest three states are New Jersey (2.45%), Rhode Island (2.23%), and Pennsylvania (1.82%),”

Far from “cooking the books” Florida insurers are being baked by trial lawyers and their elected support staff.

This news must have hit Senator Farmer and Chip Merlin like a cold, wet slap in the face. Unless, of course, they believe all of America’s state departments of insurance are cooking their books along with all the insurers who don’t even do business in Florida, all as part of a conspiracy with the National Association of Insurance Commissioners.

How shallow and transparent their foolish comments sound compared to Altmaier’s irrefutable data.

In addition to answering the question asked at the top of this page, Insurance Commissioner Altmaier’s impeccably timed letter means everything you’ve been hearing about litigation run amok in Florida’s property insurance market is utterly true, maybe even worse.

Contact your elected House member. Tell them the recommendations in Commissioner Altmaier’s letter regarding the Texas Style tort reforms must be implemented.

Then, sign this petition: https://fltortreform.com/  And, when you do put the following message in the message bar:

“Please support legislation which contains the Texas style tort reforms in SB-76 and as recommended by Insurance Commissioner David Altmaier in his letter to House Commerce Committee Chairman, Representative Blaise Ingoglia.”

##end##

NOTE #1:  See the attempt by Chip Merlin to convince others that what’s happening in Florida is happening everywhere else and that “rate increases…” are “…due to costly events… and reinsurance.” Then read Guy Fraker’s patient and factual rebuttal.

For more on Chip Merlin’s practice and proclivities enter his name in the blog site search bar upper right.

IMPORTANT: If you enjoyed this post you’re invited to subscribe for automatic notifications by going to: www.johnsonstrategiesllc.com.  Enter your email address where indicated.  If you’re already on the website at Johnson Strategies, LLC, go to the home page and enter your email address on the right-hand side.  Remember, you’ll receive an email confirming your acceptance, so…check and clear your spam filter for notifications from Johnson Strategies, LLC.  ENJOY!

Please view “The Johnson Strategies Story”

 

 

facebookShare on Facebook
TwitterPost on X
FollowFollow us
PinterestSave

Filed Under: Advocacy

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Unless otherwise attributed, articles on this site are the opinions of Scott Johnson.

To subscribe to Scott’s blog…

JS Contributors

Don Brown
Particularly on insurance issues, Don Brown brings expert legislative acumen to the JS team. First elected in 2000 he emerged as an architect on numerous insurance related reforms, predominantly Property Insurance. He’s been an independent insurance agent for over 25 years and is currently a sought-after speaker, consultant and author. Learn more
David Thompson, AAI, CPCU, CRIS
David Thompson has a well-deserved reputation across the country as a preeminent expert in the Property & Casualty field. Learn more
Bill Wilson, CPCU, ARM, AIM, AAM
Bill is one of the most respected speakers and writers on P & C issues in the U.S. He is recognized by his peers as someone who can explain complicated technical subjects in an easily understood and interesting fashion. His list of accomplishments and awards is legendary. For good reason his books, articles and consulting services are in continuous demand. Learn more
Barry Zalma, ESQ. CFE
Johnson Strategies has relied upon Mr. Zalma on numerous occasions for his research and insight into matters of insurance fraud, bad faith, relevant case law and expert analysis. Learn more

Order Scott’s Books

Collapse of an Evil Empire

Fraud and greed pushed home insurers to the brink. Something bold had to be done. This is the story of the disbarment of Florida’s most prolific litigator leading to the most comprehensive tort reforms in Florida, and perhaps American, history.

What's Past is Prologue

Lessons from the Worst Insurance Crisis in Florida’s History... ASSIGNMENT OF BENEFITS

Fact & Fallacy

Essays & Opinions on Florida's Most Controversial Insurance Topics.

Platforms of Success

What the New Generation of Elite Sellers are Doing and How it Can Work for You!

From Cartels to Competition

The Evolution of Insurance and the History of Florida’s Independent Agent

Recent blog posts

  • AGENTS, ADJUSTERS, INSURERS BEWARE—THE RED FLAGS OF FRAUD!
  • The Delicate Balance: Addressing MGA Concerns Without Creating Market Uncertainty
  • Are Florida’s MGA’s Under Attack?!
  • A Smarter Approach to Hurricane-Resilient Homes and Insurance Stability…
  • How Do Other Jurisdictions Manage Hurricane Risk Exposure?

Blog Archive

  • April 2025 (1)
  • March 2025 (2)
  • February 2025 (2)
  • January 2025 (2)
  • October 2024 (3)
  • September 2024 (2)
  • August 2024 (2)
  • May 2024 (1)
  • January 2024 (1)
  • October 2023 (4)
  • September 2023 (2)
  • April 2023 (1)
  • March 2023 (2)
  • February 2023 (3)
  • January 2023 (1)
  • December 2022 (2)
  • November 2022 (1)
  • August 2022 (2)
  • July 2022 (1)
  • June 2022 (1)
  • May 2022 (2)
  • March 2022 (4)
  • February 2022 (3)
  • January 2022 (3)
  • November 2021 (2)
  • October 2021 (3)
  • September 2021 (1)
  • August 2021 (3)
  • July 2021 (4)
  • April 2021 (5)
  • March 2021 (3)
  • February 2021 (6)
  • January 2021 (6)
  • December 2020 (2)
  • October 2020 (3)
  • September 2020 (2)
  • August 2020 (2)
  • July 2020 (1)
  • June 2020 (2)
  • April 2020 (1)
  • March 2020 (1)
  • February 2020 (1)
  • January 2020 (1)
  • August 2019 (2)
  • June 2019 (1)
  • March 2019 (1)
  • January 2019 (1)
  • December 2018 (1)
  • November 2018 (1)
  • September 2018 (1)
  • July 2018 (1)
  • June 2018 (2)
  • October 2017 (2)
  • September 2017 (1)
  • August 2017 (1)
  • June 2017 (1)
  • April 2017 (2)
  • March 2017 (2)
  • February 2017 (1)
  • December 2016 (1)
  • October 2016 (1)
  • August 2016 (2)
  • July 2016 (1)
  • June 2016 (1)
  • March 2016 (2)
  • February 2016 (1)
  • January 2016 (2)
  • November 2015 (1)
  • October 2015 (1)
  • September 2015 (1)
  • August 2015 (2)
  • July 2015 (2)
  • June 2015 (2)
  • May 2015 (1)
  • April 2015 (2)
  • March 2015 (1)
  • February 2015 (3)
  • January 2015 (1)
  • December 2014 (2)
  • November 2014 (4)
  • October 2014 (1)
  • September 2014 (2)
  • August 2014 (2)
  • July 2014 (2)
  • June 2014 (2)
  • May 2014 (3)
  • April 2014 (2)
  • March 2014 (3)
  • February 2014 (3)
  • January 2014 (2)
  • December 2013 (2)
  • November 2013 (2)
  • October 2013 (2)
  • September 2013 (2)
  • August 2013 (2)
  • July 2013 (3)
  • June 2013 (2)
  • May 2013 (3)
  • April 2013 (2)
  • March 2013 (3)
  • February 2013 (5)
  • January 2013 (2)
  • December 2012 (4)
  • November 2012 (3)
  • October 2012 (4)
  • August 2012 (5)
  • July 2012 (5)
  • June 2012 (4)
  • May 2012 (3)
  • April 2012 (7)
  • March 2012 (3)
  • February 2012 (3)
  • January 2012 (5)
  • December 2011 (6)
  • November 2011 (7)
  • October 2011 (6)
  • September 2011 (2)
  • August 2011 (7)
  • July 2011 (7)
  • June 2011 (4)
  • May 2011 (4)

Tag Cloud

7-7-7 Plan Citizens Insurance oir Rick Scott sb-480 senator fasano senator richter
Unless otherwise attributed, articles on this site are the opinions of Scott Johnson.

Mission: Satisfaction Guaranteed

Johnson Strategies (JS) works to establish and achieve goals promoting products or idea's to customers, state policymakers and the consuming public. This is done on behalf of both corporate and individual clients, non-profit trade associations and membership societies. JS specializes in planning, communication and advocacy for a wide range of interests focused in the property and casualty insurance field. Our simple mission is to guarantee satisfaction based on a comprehensive needs analysis and mutually defined goals.

Categories

Popular Tags

7-7-7 Plan Citizens Insurance oir Rick Scott sb-480 senator fasano senator richter

Post Calendar

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

Recent Posts

  • AGENTS, ADJUSTERS, INSURERS BEWARE—THE RED FLAGS OF FRAUD!
  • The Delicate Balance: Addressing MGA Concerns Without Creating Market Uncertainty
  • Are Florida’s MGA’s Under Attack?!
  • A Smarter Approach to Hurricane-Resilient Homes and Insurance Stability…
  • How Do Other Jurisdictions Manage Hurricane Risk Exposure?
  • PART II of “What Agents Need to Know About Public Adjusters…
  • Latest Decision on AOB!

[footer_backtotop]

Copyright 2012, Johnson Strategies LLC. Website design/development by Cali Design LLC