Imagine you’re a single mother in Tampa who hasn’t been able to replace the broken water heater for months. And while the bills and expenses keep piling up, you open an envelope and find a check for $760. You’re now able to fix the water heater and even have some change left over.The company announced it will return nearly $1 billion in savings to eligible Florida policyholders, including a $500 million dividend. This was a direct result of legislation passed by Florida lawmakers to rein in lawsuit abuse.
More than 830,000 USAA members will receive payments, which began rolling out last month. That’s real money in the hands of real families. Most policyholders will get an average of $760, and over a quarter will see more than $1,000 per check. Before the state’s reform movement began, Florida was a magnet for lawsuit abuse. Litigation costs stacked up year after year, forcing businesses to make a difficult decision: either leave the state or increase prices. Not because they wanted to, but because excessive legal costs left them with no other choice. And for the businesses that remained, these costs didn’t disappear but were instead folded into the prices of everyday goods and services. Billboard lawyers had built a machine, and ordinary Floridians were paying the price.It became the status quo. Florida’s 2023 reforms were the game-changer in this multi-year movement, and the results were immediate. From 2023 to 2024, overall insurance litigation filings in Florida dropped by 23%, a clear sign that the state’s reforms were curbing abuse and reducing pressure on the system. The legislature eliminated one-way attorney-fee provisions, reformed bad-faith statutes, and tightened the rules around assignment of benefits.Instead of enriching those who exploit the legal system, these measures restored balance, consistency, and transparency to a system overrun with abuse, excessive litigation, and frivolous lawsuits. Billboard lawyers fought these reforms, insisting they would do nothing to lower costs for ordinary people. They were wrong. The connection between reducing litigation abuse and lowering costs for families has moved from argument to fact. Reform the legal system, and prices fall. It really is that straightforward. When states tackle litigation industry abuse, they help lower premiums and costs for consumers. Florida chose reform, and its policyholders are being rewarded for it. RESTORING AMERICA: THE BILLBOARD LAWYER RACKET, AND HOW TO CLOSE ITThe U.S. Chamber of Commerce Institute for Legal Reform has long argued that excessive litigation is a hidden tax on consumers and businesses alike. USAA’s announcement is the clearest and most recent validation of that case. These are real reforms, real savings for families, and a model every state could follow.
