As Florida’s spring legislative session approaches its end, a viable resolution to the financial losses faced by the property insurance industry has yet to emerge. A trio of bills aimed at tackling the “assignment of benefits” (AOB) problem have seemingly lost steam, and there are currently no plans for them to be evaluated by a committee.
The bills are intended to try and resolve a longstanding, fierce feud among trial attorneys and insurance companies. Two Senate bills were created in opposition to each other and there is a third House bill that’s more of a “let’s meet halfway” resolution. This House bill has remained in limbo for over a month.
One of the insurance companies making the strongest plea for a legislative solution is last resort insurer Citizens Property Insurance Corp. The insurer has already warned its South Florida customers they will face rate increases if they can’t stem their losses, and they also gave up their efforts to place restrictions on homeowners’ rights to assign claims benefits. Instead, Citizens wants to change the state law forcing insurers to pay all legal fees when they settle litigated claims by paying any amount above the initial settlement offer.
Remember: although they may be losing money, insurance companies are not your friend. Always make sure you have proper representation when dealing with the insurance company.
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.