"It's been seven years of hard work,but today's passage of assignment of benefits reform legislation inFlorida is a major victory for consumers." Liz Reynolds, regionalvice president of the Southeast for the National Association ofMutual Insurance Companies, said in a statement. (Photo:Shutterstock)
The Florida Senate approved an overhaul of the insurancepractice known as assignment of benefits, or AOB, and Gov. RonDeSantis issued a statement saying he will signit. AOB has been a highly controversial issue in recentyears, with insurers arguing that litigation and fraudinvolving the practice are driving up property insurancepremiums.
The bill, as written, is expected to keep consumers in controlof their insurance policies and, over time, reduce insurers' costsfor inflated claims and litigation that must be passed along toconsumers. Changes to one-way attorney fees should eliminateincentives for filing costly lawsuits. Other provisions addprotections for consumers, including allowing policyholders theright to rescind an AOB without penalties and requiring writtenestimates for work.
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
