Monday, January 31, 2011

Opposition to bad faith reform: "government takeover"

A new website, Taxpayers Against Insurance Bad Faith, provides a sign that opponents of "bad faith" reform are preparing for a fight.  The angle of this "patriotic" site is that bad faith reform will result in "government takeover of insurance claims" and "We are opposed to any government takeover of insurance claims."

The website has no announced sponsor, but will take your cash contributions.  According to the statement on the home page:

"If these insurance companies get their way, their new government bureaucracy will do the insurance companies’ job -- investigating, reviewing, and supervising claims handling at taxpayer expense. Every time an insurance company fails to settle a legitimate claim, the frustrated customer will be required to fill out a government form and file it with the Florida Department of Financial Services. If the government decides to reject the customer complaint for “lack of specificity,” the customer will have to start over by filing a new government form until the government decides the form is acceptable."

The site closes with the admonition:  "Government control of private industry has failed again and again. If you oppose another attempt to dramatically increase the size of government and the inevitable tax hikes that will accompany it, join us."

Perry Cone practices insurance, compliance and government law, and provides consulting to in-house counsel, from the Tallahassee office of GrayRobinson. He writes from his perspective as a former general counsel, executive, and leader in the Florida insurance industry. Visit Perry's blog at

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