With the legislative session soon to arrive, Florida’s insurance industry will be putting the pressure on lawmakers to pass significant reforms aimed at addressing assignment of benefits (AOB). Consumers face a tough future as rate increases and a possible crisis of coverage availability loom due to ongoing AOB abuse. While the insurance industry seems to have a solid grasp of how to fix the AOB situation, there is no certainty that the Florida legislature will take the industry’s recommendations into account.
Citizens Property Insurance Corp. and the Florida Office of Insurance Regulation along with several other stakeholders are collaborating with lawmakers to spearhead a bill for the 2017 legislative session kicking off on March 7. This bill would have AOB consumer protections, but would also remove the incentive that assignees have been abusing.
The unanimous culprit behind AOB abuse appears to the one-way attorney fee statute, and the industry believes it needs to be addressed. Florida law states that a policyholder suing his or her insurer over a claim dispute is eligible to recover their attorney fees if it is proven that the insurer underpaid the claim, no matter the amount.
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.