Florida insurance legal reforms are at the center of a renewed debate after the CEO of Citizens Insurance Corp., the state’s largest insurer, warned that efforts to undo these changes could destabilize the property insurance market. The comments come as court rulings and legislative proposals challenge the reforms that industry leaders say helped stabilize insurance availability and costs in Florida, even as Florida remains the most expensive state for homeowners insurance in the nation.
Florida Insurance Legal Reforms Face New Challenges
Tim Cerio, CEO of Citizens Insurance Corp., addressed the company’s governing board on September 24, 2025, emphasizing the importance of maintaining recent legal reforms in the Florida insurance market. According to Cerio, these reforms have helped address the state’s insurance crisis by curbing what he described as fraudulent litigation and excessive legal fees.
“The conduct of the lawyers who do engage in fraudulent litigation drove up policyholder premiums and helped create Florida’s insurance crisis,” Cerio stated during the board meeting. He argued that rolling back these legal reforms could reverse progress and return the market to the instability seen in 2023.
Key Elements of Florida Insurance Legal Reforms
The main keyword, Florida insurance legal reforms, refers to a series of legislative changes enacted between 2019 and 2023. These reforms limited policyholders’ ability to sue insurers, introduced new arbitration processes, and reduced incentives for litigation by eliminating certain attorney fees.
- Restrictions on lawsuits against insurers
- Authority for Citizens to use administrative arbitration (DOAH)
- Elimination of attorney fee multipliers in many cases
- Efforts to attract private insurers back to the Florida market
According to insurance industry officials, these measures were necessary to address rising premiums and insurer insolvencies, which had left many Floridians with limited options for property insurance. As a result, property insurance companies in Florida have seen profits surge following the implementation of these reforms.
Citizens Insurance and the Arbitration Controversy
One of the most debated aspects of the Florida insurance legal reforms is the use of the Division of Administrative Hearings (DOAH) to resolve disputes between Citizens Insurance and policyholders. In 2023, Citizens was granted authority to direct disputed claims into this administrative process, where judges issue binding decisions.
However, on August 2, 2025, a Hillsborough County judge halted Citizens’ use of DOAH for settlement disputes. According to court documents, the judge found that a policyholder, Martin A. Alvarez of Tampa, had a substantial chance of success in arguing that the process violated his constitutional right to a trial. The ruling cited the significant challenge plaintiffs face in DOAH, where Citizens reportedly won 90% of cases before administrative judges.
Industry and Consumer Perspectives on Legal Reforms
Insurance industry leaders, including Cerio, maintain that the reforms have improved the market. During the September board meeting, Citizens officials highlighted:
- Decreased lawsuit costs
- Increased participation by private insurers
- Lowered liability for Citizens Insurance
- Stabilized or slightly reduced insurance rates
Cerio warned that undoing these changes could force Citizens to take on a much larger share of policies, as happened during the 2023 crisis when private insurers left the market.
Consumer advocates, however, argue that the reforms have come at the expense of policyholders’ rights. Joanne Doroshow, executive director of the Center for Justice and Democracy, criticized the reforms for blaming litigation rather than insurer practices for the crisis. She stated that policyholders are often forced to litigate because insurers fail to pay legitimate claims or offer inadequate settlements.
Recent Court Rulings and Legislative Efforts
The August court ruling against Citizens’ use of DOAH is not the only challenge to the Florida insurance legal reforms. In response to complaints about slow payouts after the 2024 hurricane season, lawmakers introduced legislation to restore attorney fee rights in insurance cases. The bill passed a House committee with bipartisan support but stalled before reaching the full legislature.
According to official sources, the reforms have significantly reduced the volume of litigation. Cerio reported that after attorney fees were restricted, the number of lawsuits dropped, and Citizens’ policy roster fell by 63% from its 2023 peak of 1.4 million policies. The state’s insurance regulator announced the approval of the 16th and 17th new insurers since the reforms, signaling increased competition in the market. This competitive environment has also led to developments such as the historic rate cut proposal by Florida Peninsula Insurance for homeowners.
Disputes Over Arbitration Fairness
Critics of the administrative hearing process argue that policyholders face an uphill battle. Media reports and court filings note that Citizens wins the vast majority of DOAH cases, raising concerns about fairness and impartiality. Some attorneys, such as Justin Cernitz of Miami, have called recent court rulings a positive step for policyholder rights.
Cerio, however, defended the process, stating that 37% of cases sent to arbitration resulted in Citizens reversing its initial decision and paying policyholders. He also cited statistics indicating that over half of DOAH cases were dropped before a hearing, which he attributed to weak claims or attorney malpractice.
Ongoing Debate Over Florida Insurance Legal Reforms
The debate over Florida insurance legal reforms is likely to continue as courts and lawmakers weigh the balance between market stability and consumer protection. According to official sources, details of the administrative hearing process and other reforms may be updated as investigations and legal proceedings continue.
Both industry officials and consumer advocates agree that Florida’s property insurance market remains vulnerable to natural disasters and economic pressures. The outcome of ongoing legal challenges and proposed legislation will shape the future of insurance coverage and policyholder rights in the state.
Frequently Asked Questions About Florida Insurance Legal Reforms
What are Florida insurance legal reforms?
Florida insurance legal reforms are a set of laws passed between 2019 and 2023 to address rising insurance premiums and market instability. These changes limited lawsuits against insurers and introduced new arbitration processes for disputed claims.
How have Florida insurance legal reforms affected policyholders?
Policyholders now face more restrictions when contesting insurance claim decisions. While the reforms have stabilized the market, many homeowners still pay high premiums and have fewer options to challenge insurers.
Are insurance rates in Florida going down because of these reforms?
According to industry officials, insurance rates have mostly stabilized or decreased slightly since the reforms. However, due to inflation and rebuilding costs, many policyholders have not seen significant premium reductions.
Can you still sue your insurance company in Florida?
Policyholders can still sue their insurance company, but recent reforms have made the process more difficult. Many disputes are now directed to administrative hearings instead of civil court.
Where are administrative hearings for insurance disputes held in Florida?
Administrative hearings for insurance disputes are conducted by the Division of Administrative Hearings (DOAH), which is a state agency. These hearings are typically held in regional offices or virtually, depending on the case. For regulatory information and updates, you can also refer to the Florida Office of Insurance Regulation.
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