American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • FOR RELEASE ON RECEIPT
  • March 29, 2017
  • Prejudgment Interest Legislation Hurts Florida Consumers
  • Tallahassee, Fla. — The Property Casualty Insurers Association of America (PCI) today issued the following statement attributed to its regional manager Logan McFaddin regarding its opposition to Senate Bill 334, by Senator Greg Steube (R-Sarasota), relating to prejudgment interest.  SB 334 was today heard in the Senate Rules Committee, its last committee of reference.

    “We are disappointed that this legislation passed through committee. The American Tort Reform Foundation’s annual Judicial Hellholes report already lists Florida as among the nation’s most unfair civil court jurisdictions, and this legislation could make things worse for consumers.  

    “Expanding prejudgment interest is bad for Florida, as it would inflate lawsuit payouts and increase litigation costs.  It adds costs to the system by increasing the payout, discouraging settlements and making litigation more expensive which, for insurance consumers, is ultimately paid out by all policyholders by increasing costs.

    “Higher litigation costs ultimately hurt Florida consumers. Not only could prejudgment interest raise Floridians’ insurance premiums, it will drive businesses and jobs from Florida.  Simply put, this legislation is about money, not justice.

    “We look forward with working with lawmakers this session to improve Florida’s business climate and help maintain a healthy, competitive insurance market for consumers. SB 334 is not the right solution.”

  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $202 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 33 percent of the commercial property and liability market and 34 percent of the private workers compensation market.
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