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CFO Jimmy Patronis: We Need to Identify Reforms to Curb Fraud in Property Insurance

9/10/2018

For Immediate Release: Monday, September 10, 2018
Contact: Anna Alexopoulos Farrar, 850.413.2842, anna.farrar@myfloridacfo.com  

CFO Jimmy Patronis: We Need to Identify Reforms to Curb Fraud in Property Insurance
 
TALLAHASSEE, Fla.—Florida Chief Financial Officer (CFO) Jimmy Patronis has called on Citizens Property Insurance Corporation to host a series of roundtables with his office to hear from stakeholders on how to best tackle assignment of benefits (AOB) fraud and help keep insurance rates low.
 
Citizens recently attributed a proposed rate increase, which was halted by CFO Patronis’ concerns, to skyrocketing nonweather water losses and increased litigation. It’s clear this issue must be addressed.
 
CFO Jimmy Patronis said, “When used correctly with reputable contractors, assigning your benefits over isn’t a bad practice. However, in the hands of bad actors who want to make a quick buck that could mean skyrocketing insurance rates for everyone. 
 
“We’ve seen a significant increase across all insurers in AOB lawsuits from approximately 400 in 2006 to more than 28,000 in 2016. Shifting the burden to the policyholder is not the solution. This deters people from purchasing adequate coverage, and sometimes opting to go without. Insurance should protect Florida families and not be a cost burden. We have to stop the fraud and those who game the system.”
 
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About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a native Floridian and a member of Florida’s Cabinet, who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).