When Florida passed assignment of benefits (AOB) reform back in July, it came as great news to insurance companies. The head of Citizens Property Insurance Corp has states he’s noticed a difference. In the meantime, most Citizens policyholders may see premium relief from the new law as the post-AOB overhaul rate of the insurer is coming into effect next month. According to an Insurance Journal article, AOB-related lawsuits involving Citizens have seen drops from 2,000 a month during the previous two months to 1,750.
In order to be considered, AOB claims must comply with the current AOB law found in House Bill 7065, which provides a two-fold advantage because both the number of claims and the right to exclude such non-compliant AOB claims have been decreased. Insurers must follow the timeline required by the bill to benefit from its safeguards and monitor how claims are inspected. Insurers must report any residential and commercial property insurance premium made in the previous calendar year under an assignment arrangement by January 2022 by Florida’s Office of Insurance Regulation.
Citizens has implemented several steps internally to become compliant with the new legislation and to track how its future costs will be affected. Rates approved by Florida’s insurance regulator following the implementation of AOB legislation will come into effect next month. The rates are expected to be lower for many policyholders.
To read more, visit https://www.insurancejournal.com/news/southeast/2019/11/20/548368.htm.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with a Miami insurance claims lawyer and receive a free consultation We look forward to working with you.
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