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.”