Florida House proposes strict penalties for motor vehicle insurance fraud

On February 19, 2025, the Florida State Legislature introduced House Bill 777, a significant piece of legislation aimed at addressing various forms of insurance fraud within the state. The bill seeks to enhance penalties for specific fraudulent activities, particularly those related to motor vehicle accidents and the sale of personal protective equipment (PPE).

The primary focus of HB 777 is to amend existing statutes concerning insurance fraud, specifically targeting actions such as soliciting motor vehicle accident victims with the intent to defraud and organizing intentional vehicle collisions. The bill proposes to classify these offenses with increased severity, with penalties escalating based on the value of the fraud involved. For instance, fraudulent activities involving property values of $100,000 or more would be categorized as first-degree felonies, reflecting the bill's intent to deter high-stakes fraud.

Notably, the bill also addresses the fraudulent sale of PPE, a relevant issue in the wake of the COVID-19 pandemic, where the demand for such equipment surged. By imposing stricter penalties for those who offer PPE for sale with fraudulent intent, the legislation aims to protect consumers and ensure the integrity of the market.

The introduction of HB 777 has sparked discussions among lawmakers and stakeholders regarding its implications. Proponents argue that the bill is a necessary step to combat rising insurance fraud, which not only affects individual victims but also contributes to higher insurance premiums for all Floridians. Critics, however, have raised concerns about the potential for overreach and the impact on legitimate businesses operating in the insurance and PPE markets.

As the bill progresses through the legislative process, it is expected to undergo further debates and possible amendments. Experts suggest that if passed, HB 777 could lead to a significant shift in how insurance fraud is prosecuted in Florida, potentially serving as a model for other states grappling with similar issues.

In conclusion, House Bill 777 represents a proactive approach by the Florida State Legislature to strengthen the legal framework against insurance fraud. With its focus on severe penalties and specific fraudulent practices, the bill aims to protect consumers and uphold the integrity of the insurance industry in Florida. The coming weeks will be crucial as lawmakers deliberate on the bill's provisions and its potential impact on the state's legal landscape.