Insurance Week: FL Supreme Court Ruling on Punitive Damage Claims, State Crackdown on Catalytic Converter Theft & More

FL High Court Decision Could Discourage Punitive Damage Claims:

The Florida Supreme Court has approved an appellate procedure rule change that, beginning April 1, will allow interlocutory appeals on whether lawsuits can include punitive damage claims. Currently, litigants must wait until the conclusion of a trial to appeal such claims.

Some attorneys said the potential delays in litigation resulting from the new rule could discourage many plaintiffs from seeking punitive damages.

Tort-reform advocate William Large, president of the Florida Justice Reform Institute, meanwhile, said the ruling was a “game changer” that would reduce disputes between insurers and insureds over punitive damages.

“Prior to this rule change, parties had to wait until the conclusion of a trial to address the issue with an appellate court,” he said. “Seldom did parties get to have an appellate review, because of insureds’ pressure on insurers to settle the case. Finally, defendants and insurers will be afforded the due process they have been lacking.” (INSURANCE JOURNAL)

States Crack Down on Rampant Catalytic Converter Theft:

Theft of catalytic converters has risen sharply during the coronavirus pandemic. The number of insurance claims filed for such theft increased from 3,389 in 2019 to 14,433 in 2020, according to the National Insurance Crime Bureau.

In response to that alarming trend, 10 states, including Arkansas, South Carolina and Texas, enacted new laws requiring scrap metal businesses that buy used converters to keep detailed records of those purchases, including proof of ownership and the seller’s home address and driver’s license number.

A new law that took effect in North Carolina in December makes catalytic converter theft a Class I felony, as well as mandates detailed documentation of converter sales. Legislation modeled on the North Carolina law is also expected to be introduced in Virginia this session. (INSURANCE JOURNAL)

White House Directs Health Insurers to Cover Home COVID-19 Tests:

Under new guidance from the Biden administration, private health insurers, beginning on Jan. 15, will have to cover the cost of up to 8 rapid antigen tests per insured per month. Insurers can directly cover purchases at preferred pharmacies and retailers or reimburse insured purchases. (KAISER HEALTH NEWS

Robinhood Ordered to Pay Retail Trader Roughly $30K:

A Financial Industry Regulatory Authority (FINRA) arbitrator ordered Robinhood to pay retail investor Jose Batista nearly $30,000 for restricting trades on certain stocks last January. Although arbitration decisions don’t set legal precedent, Batista’s case could encourage other investors harmed by the trading platform’s actions. (VERGE)

Natural Disasters Cost U.S. Insurers $85B in 2021:

Natural disasters in 2021 cost insurers $120 billion worldwide, with $85 billion of that total shouldered by U.S. insurers, according to a report from Munich Re. The global reinsurer also said many of last year’s weather disasters were consistent with climate change. (INSURANCE JOURNAL)

NY Law Bars Dog Breed Discrimination by Home Insurers:

A new state law in New York bars insurance companies from denying coverage to homeowners because of the breed of their dog. Previously excluded breeds include pit bulls, German shepherds and Doberman pinschers. (ALBANY TIMES UNION)

-- Compiled by KOREY CLARK