The debate involving Florida’s assignment of benefits (AOB) abuse continues to progress. Earlier this week, Florida’s Senate Banking and Insurance Committee turned down a proposal that favored insurers, instead giving the green light to a bill supported by plaintiff attorneys and contractors involved with water damage restoration. Despite the potential win for attorneys, committee members anticipate changes to the bill in future hearings and negotiations are being strongly encouraged, with senators wanting insurers and attorneys to reach a compromise.
Currently, contractors are requiring homeowners to sign over their AOB prior to starting repair work. The reasoning behind it is to allow the contractor the right to bill the insurance company on behalf of the homeowner. Insurers argue that contractors take advantage of the authority by ballooning invoices or performing work that is unnecessary and then suing the insurance company when it declines to pay the invoice. Attorneys believe insurers do not pay legitimate invoices in a timely manner, particularly when a policyholder is attempting to expedite repairs by choosing to sign AOB.
The claims abuse reform bill will now face the scrutiny of the Judiciary and Rules committees.
You can read more over at the Sun-Sentinel: http://www.sun-sentinel.com/business/fl-bz-senate-aob-face-off-20180123-story.html
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