Quote:
Originally Posted by Rainger99
Wow! If the insurance pays 71% to the attorneys and the underwriters, only 29% is going to homeowners - the people whose homes were damaged or destroyed. I don't know what it is in other states but that seems like they are paying the wrong people. I thought most lawyers get about 1/3 of damages. If Florida could get it where they are paying 60% to homeowners and 20% to lawyers (1/3 of the 60%), that would leave insurance companies with the remaining 20% - which I would assume would make writing insurance profitable.
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Attorneys in most cases do not get 1/3. Under the old Florida law, if an insurance company denies a claim and if the attorney proves that the insurance company should have paid the claim, attorney gets his legal fees paid, insurance company pays the claim including interest and insurance company pays their own attorney. Lose, lose situation for the insurance company