• 15
  • December
    2011

Citizens Property Insurance Corporation continues to search for methods to resolve its horrid claims practices and mismanagement of public funds. In virtually every case where we are representing policyholders for delayed claims, we are being told sternly by their counsel that "Citizens wants more jury trials." Rather than look at the problems associated with claims decisions made by over-burdened and poorly trained claims personnel, Citizens is looking to the other end of the conflict spectrum by trying to discourage lawyers from filing lawsuits against it. While many insurance professionals would consider another, less costly alternative like reducing the errors, Citizens lawyers are stating universally that it wants to see more of its claims resolved by juries, not by claim managers.

Frankly, the Citizens response to its lawsuit woes appears to me to be upside down. Having represented insurers in my previous life for more than 15 years on sinkhole damage, water losses, and fire claims, the answer here is less lawsuits and fewer lawyers, not more jury trials. Last time I checked, lawyers defending you are expensive. Wouldn't it more sense for Citizens to examine their claims procedures and figure out why it is getting sued as much as it is, rather than declare it will be "more aggressive in its response to the suits it caused? For example, we recently resolved a case with Citizens where it had waited more than 14 months to make a claim decision after it had been told by its experts the claim should be paid. Then, when it got sued, it told the insured "we have to protect the interests of the people in the State of Florida." What? When Citizens ultimately paid the claim, which included considerable money to both sides for legal fees, was it "protecting" the interests of our people or squandering their resources?

I hope Citizens can do some real soul searching and find out that conflict management requires an honest evaluation of your own conduct before you start attacking the other guy.