APCIA lauds state’s efforts to rein in third-party litigation funding
APCIA lauds state’s efforts to rein in third-party litigation funding | Insurance Business America
Insurance News
APCIA lauds state’s efforts to rein in third-party litigation funding
Third-party funding described as a “secretive, unregulated practice”
Insurance News
By
Ryan Smith
The American Property Casualty Insurance Association (APCIA) has lauded the Florida House of Representatives’ Civil Justice Subcommittee for advancing a consumer protection bill.
House Bill 1179, the Litigation Investment Safeguards and Transparency Act, would increase transparency in third-party litigation financing, APCIA said.
“Predatory lawsuit lending takes advantage of vulnerable Floridians and allows unknown third parties – often hedge funds or foreign actors – to meddle in and make a mockery of our court system,” said Logan McFaddin, APCIA vice president of state government relations. “APCIA commends the Florida House Civil Justice Subcommittee for taking action to address this critical issue by supporting HB 1179 today.”
McFaddin said third-party litigation was a “secretive, unregulated practice” that can harm consumers.
“It not only can leave injured parties with little to no award money because of the exorbitant interest rates, but also enhances the possibility of frivolous lawsuits and threatens to drive up the costs of products, services and insurance across Florida,” McFaddin said. “HB 1179 will bring much-needed transparency to this industry while protecting consumers and preserving the integrity of our court system.”
“This is an important consumer protection bill, and APCIA looks forward to continuing to work with lawmakers to advance it in this session,” he said.
HB 1179 isn’t the first Florida legislation aimed at curbing insurance litigation. Last year, state Gov. Ron DeSantis signed into law a bill aimed at reducing frivolous lawsuits against businesses and insurance companies.
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