But Joe, if they had to pay full RCV upfront, then the PA's wouldn't have a way to make their easy money and GC's wouldn't have a way to refund the policyholder their deductible anymore. How about the one where the policyholder decides to switch to the lowest bidder after their claim's been paid. Pardon my satire, but if that statute changes, then policyholders would no longer be able to make their money back after paying all those hefty premiums in years past...
I agree. The State of Florida has the pendulum swung and stuck in a terribly unfavorable side which has a highly disoriented perspective of what the insurance policy was designed to do- restore to pre-loss condition. It's sad that people today have the strange notion that RCV is pre-loss condition and they're entitled to whatever profit they are able to cleverly manipulate out of their claim settlement.
I suppose they could always go back to selling HO2 policies en-masse and disallow the purchase of RC benefits? Perhaps they could just sell insurance as a non-admitted carrier?
IMHO, the fact that Florida is trying to exert this much control over a two year bail-out plan is identical to the control that our national government is exercising over the auto industry. If you have a bad business model, then let the business make the necessary changes they need to make before they continue to bleed out profusely. The US Government needs to let the big three go into bankruptcy and FL needs to let State Farm move somewhere else. In capitalism, you can't have all good years- it takes a few nasty years and/or growing pains to create hefty returns and a higher net growth.
I bring in the auto industry parallel just to show that my points are not so much pro-carrier as they are to demonstrate the un-American steps that FL is taking.