The bill geared towards addressing insurance claims abuses in Florida has passed another hurdle on its way to becoming a reality, successfully making it through the Florida House. Also known as House Bill (HB) 1421, the bill will now fall into the hands of the Senate.
HB 1421 is aimed at tackling assignment of benefits abuse. The claims—which typically involve water losses—are causing headaches in the legal system due to increased litigation. As a result of the litigation, insurers are forcing to drive up property insurance rates. Last resort insurer Citizens increased its rates by just over six percent this year.
Should HB 1421 pass, it has several key points worth mentioning. Policyholders will have the option of rescinding an assignment agreement no matter the reason as long as it’s done within seven days of signing. Assignees will be required to provide copies of this agreement to the insurer within three business days upon execution of the assignment agreement or the date that repair work commences. Additionally, the assignee must notify the policyholder as well as the insurer that they intend to file litigation against the insurer.
Do you need legal help with your insurance claim? Give us a call to schedule a complimentary consultation and one of our attorneys will evaluate your potential case.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.