Florida House passes bill targeting motor vehicle insurance fraud

On April 16, 2025, the Florida State Legislature introduced House Bill 21, a significant piece of legislation aimed at combating insurance fraud and enhancing consumer protection. The bill seeks to address various fraudulent activities related to motor vehicle accidents and the sale of personal protective equipment (PPE), which have become increasingly prevalent in the state.

The main provisions of House Bill 21 include stricter penalties for soliciting motor vehicle accident victims with the intent to defraud, as well as for organizing or participating in intentional motor vehicle collisions. Specifically, the bill categorizes these offenses as second-degree felonies, reflecting the seriousness with which lawmakers view these fraudulent schemes. Additionally, the legislation introduces first-degree felony charges for making false entries or statements regarding property values that contribute to the insolvency of insurance entities, particularly when the property value involved exceeds $100,000.

Notably, the bill also addresses the fraudulent sale of PPE, making it a third-degree felony to offer such items for sale with the intent to deceive consumers. This provision comes in response to the surge in demand for PPE during health crises, which has unfortunately led to an increase in scams targeting vulnerable populations.

The introduction of House Bill 21 has sparked considerable debate among lawmakers and stakeholders. Proponents argue that the bill is essential for protecting consumers and maintaining the integrity of the insurance industry, especially in light of recent reports highlighting the rise in insurance fraud cases. Critics, however, express concerns about the potential for overreach and the implications of harsher penalties on individuals who may not fully understand the legal ramifications of their actions.

The economic implications of this bill are significant, as it aims to reduce the financial burden of fraud on insurance companies and, by extension, consumers. By curbing fraudulent activities, lawmakers hope to stabilize insurance premiums and ensure that resources are allocated more effectively within the industry.

As House Bill 21 moves through the legislative process, its potential impact on Florida's insurance landscape remains a focal point of discussion. If passed, the bill could serve as a model for other states grappling with similar issues of fraud and consumer protection. The next steps will involve further debates and potential amendments as legislators seek to balance the need for stringent measures against the rights of individuals.