🐕‍🦺 FL Dogs Unleashed! CA Rates Bite? + AI's New Giggle

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Welcome to the very first edition of Insurance Scoop — the only newsletter that makes insurance agents smarter, funnier, and slightly more dangerous at cocktail parties. We're serving up news, sales hacks, and claim horror stories you can steal and sound brilliant with.

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Now on to the newsletter!

In this issue:

• 🐕 Florida's New Dog Bite Law

• 💸 State Farm's CA Rate Drama

• 🤖 AI's "Hallucination" Hazard

• 🎉 Weekend Giggle: Cow-tastrophe!

Florida Mandates $100k Liability Insurance for Risky Dogs

New law hits owners of dangerous dogs.

The Gist: Florida now requires owners of dogs previously declared dangerous to carry a minimum of $100,000 in liability insurance. This legislative change aims to ensure victims of dog bites have a clearer path to compensation for injuries.

Why It Matters: Agents in Florida should proactively inform clients with dogs, especially those with breeds often flagged or with a bite history, about this new, significant liability requirement.

Read more HERE

State Farm Wants More From Californians

Approved 17% CA rate hike "not enough.”

The Gist: State Farm says its recently approved 17% average rate increase for California rental dwelling, home, and condo owner policies falls short. The insurer is pushing for its full 30% requested increase at a hearing later this year, signaling ongoing pressure in the volatile CA market.  

Why It Matters: California agents must brace for further rate instability and prepare clients for potentially more significant premium jumps from the state's largest insurer.

Read more HERE

Progressive Posts Record April Performance as Profitability Soars

Net income more than doubles while policies surge 17%

The Gist: Progressive reported stunning April 2025 results with net income surging 134% to $986 million and total policies growing 17% to 36.7 million. The combined ratio improved to 84.9% from 89.0% a year earlier, indicating significantly more profitable underwriting performance.

Why It Matters: As the second-largest personal auto insurer in the US, Progressive's strong momentum signals potential stabilization in the turbulent auto insurance market.

Read more HERE

Liberty Mutual Warns about liability for “AI Hallucinations”

The Gist: Paul Larson, president of financial lines at Liberty Mutual, cautions that as companies adopt AI, they face new "hallucination liability" risks. This refers to instances where AI generates false or misleading information, potentially leading to corporate missteps and D&O exposures.

Why It Matters: Agents should discuss these emerging AI-driven D&O risks with commercial clients, as insurers are already eyeing this new exposure.

Connecticut Commissioner Calls for AI Guardrails

The Gist: Speaking on May 23rd, he emphasized the need for oversight to ensure AI is used responsibly and fairly by carriers. This signals a shift towards more proactive regulation, potentially leading to industry-wide standards for AI development and deployment.

Why It Matters: Expect more regulatory scrutiny on how insurers use AI, impacting everything from underwriting to claims and marketing.

Read more HERE

Bad Faith, Big Verdict.

The Gist: A Colorado jury slammed NorGUARD Insurance (a Berkshire unit) with a $145.3 million verdict for denying care to an injured worker. The insurer’s bad-faith refusal to pay for a traumatic brain injury led jurors to tack on $60M in punitive damages – one of the largest comp claim awards ever. Lawyers say it’s a wake-up call that insurers must put people over pennies.

Why It Matters: “This verdict sends a clear message… if you delay treatment or prioritize profit over people, we’ll fight for justice,” warned the plaintiff’s attorney.

Read more HERE

From the 'You Can't Make This Stuff Up' Files: Farmer Claims iPhone Vanished... Inside Cow! 

The Gist: A UK livestock farmer, using his iPhone's flashlight while assisting a cow during a stormy night calving, claimed the phone disappeared inside the animal. The phone was later found (details mercifully sparse) damaged beyond repair, but the insurer actually paid the claim😂😂.

Why It Matters: Proof that "covered perils" can sometimes include "bovine ingestion," and comprehensive means comprehensive!

That’s a wrap for this week’s intel drop! We hope these nuggets help you conquer the chaos and maybe even share a laugh (or a groan) with a colleague.

We’ll be back next week with another killer issue!