florida assignment of benefits 2022

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Florida CFO Calls for Ban on Assignments of Benefits, Limits on Public Adjusters

In the wake of Hurricane Ian, Florida’s chief financial officer has taken a hard line on insurance claims litigation, calling for an outright ban on assignments-of-benefits agreements.

At a press conference in Cape Coral, a city hit hard by the hurricane this month, and in a statement Wednesday, CFO Jimmy Patronis also urged Florida lawmakers to establish a statewide insurance fraud prosecutor and to disincentivize public adjusters after a storm.

“We have bad public adjusters swarming impacted areas, soliciting, and trying to make a quick buck,” Patronis said. “Not only do individuals need more time to get out of a public adjuster contract during a state of emergency, we need to reduce the percentage a public adjuster is entitled to immediately following a storm, ensuring their motives are aligned with helping Floridians get back on their feet.”

Patronis, whose Department of Financial Services regulates adjusters, did not say what he based the “bad adjusters” assertion on. But some Florida insurers have long complained about public adjusters working closely with contractors and promising homeowners free roofs after a windstorm, leading to exaggerated claims and litigation.

The CFO also did not provide details on his proposed schedule of fees for adjusters.

The call for an end to assignments of benefits, or AOBs, has already met with support from one insurance industry leader.

“We commend the CFO for calling attention to ongoing abuse of assignment-of-benefits tools by shady vendors whose goal is profit above all else,” said Michael Carlson, president of the Personal Insurance Federation of Florida, which represents a number of insurance carriers. “Eliminating post-loss assignments that transfer consumer rights to vendors is a good idea. We also believe that addressing exorbitant public adjuster fees is another good idea and a means to reduce predatory behavior by these licensees.”

Several Florida insurance executives in recent years have called for statutory changes that would allow insurance policies to bar AOB agreements, noting that thousands of lawsuits in recent years have resulted from disputed AOB claims. Data from CaseGlide, a litigation management software firm, shows that as much as 41% of litigated claims against Florida’s largest insurers resulted from assignees of benefits, usually from restoration contractors. In July, the AOB share of new litigations reached an 18-month high, the company said. That came despite 2019 Florida legislation that aimed to reduce AOB suits.

A number of other states allow insurance policies to include non-assignment of benefits clauses.

Carlson said that claims litigation is “the storm after the storm,” and that one-way attorney fees also need to be addressed to disincentivize unnecessary lawsuits.

The Florida Association of Public Adjusters pushed back on Patronis’ agenda.

“We are concerned that the recent release misrepresents the important role and work of licensed public adjusters,” FAPIA President Chris Cury said in a statement Thursday.

Instead of bad actors in the hurricane zone in southwest Florida, “it appears there is a focus on lawful and licensed insurance professionals who are truly working to help policyholders in their time of need.”

Cury noted that, following a declared emergency, adjuster fees already are limited to no more than 10% of any claim made in the first year after the loss.

“Licensed public adjusters, who are regulated by the Department of Financial Services, adhere to strict standards and continue to serve in an essential capacity for the sake of policyholders,” Cury said.

Insurance industry advocates have often blamed the adjusters for advertising heavily after storms and encouraging inflated claims. Insurance agents have reported that homeowners in the Hurricane Ian strike zone have fielded dozens of calls and door-knocks from public adjusters. But some adjusters and claimants’ attorneys have maintained that public adjusters help homeowners achieve a fair payout on claims, while insurance companies sometimes try to minimize the extent of damages.

“The insurance company has adjusters trained to interpret policies and assess a loss but want to preclude an insured from retaining professionals to assist them in doing the same,” said West Palm Beach attorney Gina Clausen Lozier, who has represented policyholders in claims disputes.

She pointed out that many insurance policies require insureds to submit statements within a short timeframe attesting to the amount of losses. Failure to submit can result in denial of the claim. If it’s overstated, insurers have been known to allege fraud. A public adjuster can help provide a timely estimate.

Lozier agreed that Florida’s insurance market is facing a number of problems, but said that licensed adjusters are not to blame.

“The public adjusting industry in Florida is highly regulated, despite ongoing insinuations that public adjusters are operating without legal or ethical restraints by ‘preying’ on insureds,” she said.

Patronis did not call for another special session of the Florida Legislature to adopt his reform ideas, as some industry advocates have done, but referred to “this coming legislative session.” The 2023 regular session begins in March.

Patronis also reiterated his call for a $3 million anti-fraud and public education campaign.

“Policyholders need to understand what they are signing, and that litigation will only slow down their claims and could result in liens on their property,” Patronis said.

Top photo: Workers atop a building that was heavily damaged by Hurricane Ian at Fort Myers Beach. (AP Photo/Jay Reeves)

Topics Florida

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Written By William Rabb

Rabb is Southeast Editor for Insurance Journal. He is a long-time newspaper man in the Deep South; also covered workers' comp insurance issues for a trade publication for a few years.

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Florida Court Strictly Enforces New Assignment of Benefits Requirements

Alex Benarroche

472 articles

Florida Insurance Legal alerts Payment Disputes Restoration

Photo of 2 buildings under construction in Florida with Legal Alert Florida label

Restoration and roofing contractors often use an assignment of benefits agreement when performing repairs under an insurance claim. An assignment of benefits (AOB) , in the context of the construction industry, is an agreement that transfers insurance claim rights from the insured to a third-party contractor. This allows the contractor to deal directly with (and get paid by) the insurance provider.

These arrangements have their pros and cons and can often lead to litigation, disputes, and the potential for abuse. Florida has some relatively new laws governing AOBs — and, as a recent restoration contractor learned, they may be strictly enforced by the courts.

Florida’s Assignment of Benefits requirements

In 2019 Florida overhauled their assignment of benefits laws to curb growing concerns of AOB abuse within the state.

“It is no secret that the State of Florida is currently in the midst an insurance crisis, which has resulted in numerous private insurance carriers to stop writing new homeowners policies in Florida, and for same carries, has resulted in bankruptcy or insolvency,” said insurance attorney Jake Huxtable of West Palm Beach, Florida.

“Per the research, a big reason why Florida is in an insurance crisis today is because of the assignment of benefits (“AOB”) abuse and significant influx of AOB lawsuits being filed by contractors against insurance carriers throughout Florida, ever since the passage of Hurricane Irma,” Huxtable said. “There is no dispute that the high volume of AOB litigation in Florida has had a direct, negative impact on not only homeowners insurance carriers, but also on the premiums and taxes that all of us homeowners in Florida are legally required pay in order to own a home and have it insured in Florida, which just continue to skyrocket present day.”

Learn more: Florida Property Insurance Crisis Poses Risk for Restoration Contractors

Given the sharp increase in AOB litigation, the court has strictly enforced these new requirements. Take, for example, a recent case out of a Florida District Court of Appeals.

AOB agreement invalidated for failure to meet strict requirements

The case in question is Kidwell Group, LLC v. United Property & Casualty Insurance .

Project Snapshot

Owner: Ben Kivovitz (Kivovitz)
Represented by: Jake Huxtable of Kelley Kronenberg Attorneys at Law
Represented by: Chad Barr of Chad Barr Law

Kivovitz’s Boynton Beach home was insured by United covering, among other things, direct physical losses to the property. In August of 2017, Kivovitz’s house sustained damage and a claim was submitted to United. Kidwell was brought in to perform the repairs in exchange for an assignment of benefits; allowing Kidwell to directly bill United for the work.

When the work was completed and invoiced, United allegedly failed to make full payment, leaving an unpaid balance of $3,000. Accordingly, Kidwell filed a breach of contract lawsuit against United. This case made it to the 4th District Court of Appeals, which upheld the trial court’s dismissal of Kidwell’s claim due to an insufficient AOB agreement .

The statute governing the requirements for Florida AOBs can be found under Fla. Stat. 627.7152 , and more specifically for the purposes of this case subsection (2)(a) which reads:

“An assignment agreement must: 1. Be in writing and executed by and between the assignor and the assignee… 4. Contain a written, itemized, per-unit cost estimate of the services to be performed by the assignee”

The court began its analysis by stating that the plain language of the statute requires that at the time the AOB is signed, the property owner must be provided with an itemized list of the services to be performed and the costs thereof.

Upon review of the AOB agreement at issue, they affirmed the trial court’s dismissal of Kidwell’s claim:

“While [Kidwell] included the invoice as an attachment to the complaint along with the assignment of benefits, such invoice was unexecuted and dated five days after the assignment was executed… As such, the trial court properly concluded the assignment did not contain a written, itemized, per-unit cost estimate of services to be performed by [Kidwell] as required by sections 627.7152(2)(a)1 and 627.7152(2)(a)4.”

For restoration contractors in Florida, this serves to show that the courts are willing to strictly enforce these provisions and requirements to stifle the rising abuse of AOBs .

Prudent contractors should carefully review these requirements and ensure that their processes are in line with these new laws — specifically when it comes to cost breakdowns. As with every transaction, being upfront and communicating the services and costs clearly and upfront can help to avoid these types of disputes.

Related coverage : Ratings Downgrade Delivers Another Huge Blow to Florida’s Struggling Property Insurance Market

Thoughts from the attorney of record

Mr. Huxtable, the attorney representing United Property Insurance in this case had this to say about the result:

“The research and numbers don’t lie, and it is clear that the Legislature’s intent and purpose in enacting the AOB reform statute, 627.7152, was to put a stop to the AOB abuse by contractors in Florida, in hopes of halting and reducing the outrageously high number of AOB lawsuits that we’ve continuously seen being filed by contractors since 2017.” “Yet, even since the passage and enactment of the new AOB reform statute, there has nonetheless been thousands of AOB lawsuits that these financially-motivated contractors continue to initiate and pursue, without remorse, across the courts in Florida claiming to have standing to sue based upon illegal, non-compliant AOBs that they 100% know do not comport or comply with the new AOB law, but they just don’t care and have continued to pursue their old ways by abusing AOBs and taking advantage of homeowners, to the detriment of everybody in Florida.” ‘But now that we have this new appellate opinion that I was fortunate enough to argue where the 4th DCA upheld the Legislature’s intent in enacting the AOB reform statute, I am hoping that all the other appellate and trial courts in Florida fall in line and enforce the Legislature’s purpose for creating this new law in the first place; that is, to finally curb the AOB abuse and put an end to the insurance crisis in Florida. Kudos to the 4th DCA for making the right decision in this AOB case of first impression, and I am humbled to have been a part of it.”

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Assignment limitations begin with new year.

Published on: January 1st, 2023 | Insurance

The Florida legislature passed significant property insurance reforms in its December 2022 special session. Governor Ron DeSantis promptly signed these reforms into law, with many taking effect immediately upon the law’s effective date. However, a key change related to assignments of benefits (AOB) begins to have its real impact in the new year.

For many years, Florida law allowed policyholders to assign their rights to post-loss benefits to third parties. Starting about a decade ago, this longstanding right began to foster abuses as contractors would take assignments from policyholders, perform questionable or overpriced work, and directly bill insurers. The vendors benefitted from Florida’s one-way attorneys’ fee statute leading to increased litigation, losses and loss adjustment expenses.

The legislature began taking incremental steps in 2019 to address abuses in this area. Unfortunately, modest efforts at reining in costs associated with AOB’s did not work. The Florida legislature therefore took a more definitive step in the December 2022 special session. The new law specifies that with respect to any residential or commercial property insurance policy issued on or after January 1, 2023, assignment agreements are invalid and unenforceable. This will better enable insurers to communicate and adjust claims directly with policyholders (under new standards for timeliness of communications and claims payments, also set forth in the new law). Perhaps most importantly, it will curb situations when multiple vendors are claiming rights under insurance policies and initiating lawsuits arising from a single claim.

Key legislators have commented that it will take some time for the benefits of the new law to appear, and that is certain the case with the elimination of post-loss assignments. Nonetheless, the recent law change will benefit the Florida market in the long run by restoring the role of the policyholder in communications and in the loss adjusting process.

Florida’s Property Insurance Reform: The Impact on Carriers and Insureds in the State of Florida

The Florida Legislature passed Senate Bill 2-A (“SB2A” or the “Act”), which was signed into law on December 16, 2022. The Act has the potential to significantly reduce litigation of first party property cases in the state of Florida. This article summarizes key provisions of the Act that carriers should be aware of in order to protect their rights as well as ensure compliance with the Act.

Summary of Key Provisions of the Act [1]

Bad Faith – Revises Florida’s Bad Faith Statute to eliminate the payment of an appraisal award or and the acceptance of an offer of judgment as a basis to file a bad faith action;
Attorney Fees – The Act eliminates the right to attorney fees in residential and commercial suits;
Claims Handling Deadlines – The Act amends several deadlines related to an insurer’s claims handling requirements;
Notice of Claim – The Act shortens the time an insured has to file a claim and supplemental claim;
Mandatory Binding Arbitration – The Act permits carriers to include binding arbitration provisions within its policies;
Assignment Agreements – the Act eliminates Assignment of Benefits Contracts;

Key Provisions

The Act eliminates an insured’s ability to file a bad faith action based solely on the payment of an appraisal award or the acceptance of an offer of judgment (by either party). Prior to this amendment, the payment of an appraisal award acted as an adverse judgment entitling an insured to file a bad faith action. Some background is important here. The usual scenario played out like this: lawsuit and Civil Remedy Notice (“CRN”) are filed at the same time; carrier invokes appraisal and subsequently pays the award; Plaintiff files a motion for fees and costs; carrier attempts to settle the fee claim, but for an additional sum of money, is told it can obtain a release of all bad faith claims; carrier settles both the fee and bad faith claims for an increased amount. Essentially, CRNs were (and arguably still are) being used as a type of extortion against carriers to procure a larger settlement, even where no legitimate basis for bad faith exists. The legal fees and costs of litigating a bad faith action are astronomical in comparison to a breach of contract action. There is much more discovery and many more issues. Plaintiffs know this, and a cost-benefit analysis usually proves it is more cost effective to settle fifty post-appraisal bad faith claims, rather than litigate one.

This scenario has played out in Florida for a long time. In fact, the legislature attempted to address the issue back in 2019, when it amended the Bad Faith Statute to include a safe harbor period that prohibited the filing of a CRN for a period of 60 days where appraisal was invoked before a CRN was filed. However, the statute did little to curb the abuse as most appraisals take longer than 60 days and most CRNs are filed before the carrier has had the chance to invoke appraisal. The Act’s amendments are a welcomed change to the bad faith statute, and seek to reduce post-appraisal bad faith litigation. It is a step in the right direction.

It should be noted, however, that the difference between an insurer’s appraisal estimate and the final appraisal award can be used as evidence of bad faith, if a bad faith action is later filed on other grounds. Further, if the carrier is found to have acted unfairly in its use of appraisal, the Act now allows the Office of Insurance Regulation (“OIR”) to revoke approval of the carrier’s appraisal forms, or prohibit the carrier from invoking appraisal for a period of time.

From a claims handling perspective, before claims enter litigation, it is important to evaluate whether appraisal is a viable option. Appraisal benefits both insurers and insureds in ensuring prompt resolution of claims, while also avoiding the filing of a CRN for a period of 60 days.

Attorney Fees

The Act now eliminates the right to attorney fees in residential and commercial property insurance suits. The Act took effect on December 16, 2022. It is unclear whether the Act is intended to apply retroactively to bar entitlement to attorney fees in suits involving claims filed under policies that were issued before the Act took effect. We expect the issue of retroactivity to be a hotly debated issue within the courts. If the Act applies retroactively, there is no entitlement to attorney fees in any suit filed after December 16, 2022. However, if the Act does not apply retroactively, the date of renewal of the policy must be after December 16, 2022 to bar entitlement to attorney fees and costs. Lastly, although the Act eliminates the right to attorney fees, carriers will likely see an increase in litigation of current pending claims and/or claims not yet filed on policies that pre-date the Act.

Claims Handling Deadlines

The Act amends several deadlines related to an insurer’s claims handling requirements under Fla. Stat. 627.70131. This section goes into effect on March 1, 2023. Insurers should take important note of these changes:

Reduces the amount of time to acknowledge communication from its insured from 14 days to 7 days, unless there are factors beyond the insurer’s control. [2]
Reduces the amount of time to begin its investigation after receipt of a proof of loss from 14 days to 7 days, unless there are factors beyond the insurer’s control.
Reduces the amount of time to conduct a physical inspection after receipt of a proof of loss from 45 days to 30 days, if a physical inspection is required.
Requires an insurer to produce any estimate generated within 7 days after it is generated. The Act removes the insurer’s requirement to notify the insured of the right to request the estimates, since the insurer now must produce all estimates that are prepared.
Requires an insurer maintain detailed claim records of: (1) all claim communication, (2) any proof of loss received, (3) insurer’s requests for information; (4) any claim-related inspections; (5) any detailed estimates generated by the insurer; (6) beginning and end of any tolling periods; and (7) the insurer’s payment or denial of the claim.
Reduces the amount of time to pay or deny any initial, reopened, or supplemental claim from 90 days to 60 days, unless there are factors beyond the insurer’s control.

The requirements of this section may be tolled: (1) during mediation or other alternative dispute resolution proceeding under the policy; or (2) if the insured or their representative fails to provide requested claims information within 10 days after such request. Any request for information must be sent at least 15 days before the deadline to pay or deny the claim.

From a claims handling perspective, the Act requires insurer’s evaluate claims much faster with the ultimate goal of providing a prompt claim determination to its insured. Insurers must quickly evaluate a claim and determine what information is needed from their insured to give it enough time to request information at least 15 days before the deadline to render a decision. It is critical that the insurer have adequate procedures in place to comply with the new deadlines.

Notice of Claim

The Act reduces the amount of time an insured has to file a claim or reopened claim from 2 years to 1 year. It also reduces the amount of time an insured has to file a supplemental claim from 3 years after the loss to 18 months. This is a welcomed change. In Florida, there could be hundreds of weather events that occur over a period of years to an insured’s property. Delayed reporting of a claim significantly reduces the ability of an insurer to adequately determine the cause and extent of the claimed damage. It also has the effect of reducing the chances of payment on a claim due to the failure of the carrier to determine the cause and extent of damages. The reduction in time to file a claim or supplemental claim should assist carriers and insureds in promptly adjusting claims, and having the potential to increase payment on claims, thus reducing litigation.

Mandatory Binding Arbitration

The Act permits insurers to include mandatory binding arbitration provisions within their policies if: (1) they are contained in a separate endorsement; (2) the insurer provides a premium credit or discount; (3) the insured signs a form accepting the provision; (4) the endorsement establishes the insurer will comply with mediation prior to initiation of arbitration; and (5) the insurer offers a policy that does not require arbitration.

Mandatory binding arbitration is a favorable tool to be used by both insurers and insureds to ensure prompt resolution of claims. It provides a viable alternative to litigation, which often causes lengthy delays and increased costs, leaving the insured to wonder when their claim will be resolved. Arbitration provisions will also provide immediate financial benefits to insureds looking to reduce premium costs, while preserving their right to have any dispute heard by a neutral party. For insurers, it provides the benefit of reducing the exposure to litigation. Insurers without mandatory appraisal provisions should evaluate whether mandatory binding arbitration provisions are a benefit it wishes to offer.

Assignment of Benefits

The Act eliminates Assignment of Benefits (“AOB”) contracts executed under a property insurance policy, effective January 1, 2023. Any attempt by a policyholder to assign any post loss insurance benefit after January 1, 2023 is considered void, invalid, and unenforceable. The Act puts the proverbial last nail in the coffin for AOB vendors in the state. For context, according to the Insurance Information Institute, there were roughly 1,300 AOB lawsuits in Florida in the year 2000. Three years later, the annual number increased to 79,000, and by 2018 there were roughly 135,000 AOB lawsuits through November – a staggering 70% increase in just 15 years. [3] In many cases, insureds were largely unaware of the lawsuits being filed on their behalf. Most insureds became aware of the lawsuits only after their carrier notified them that one had been filed. AOB vendors were silently draining the coverage limits of insureds’ policies without ever notifying them of the cost of the work being performed or the repercussions of signing the AOB. The Act puts a stop to AOB abuse in the state, and as a result, puts more money back into the hands of insureds and reduces abusive litigation in Florida.

In summary, the Act takes positive steps to improve the insurance market in Florida for both insurers and insureds. It has the potential to significantly reduce abusive litigation by eliminating AOBs and the one-way fee shifting provision. The Act protects insureds’ rights by requiring insurers promptly and properly adjust claims, with the hopes of reducing disputes and potentially increasing payment of claims. If a dispute does arise, the Act affords Florida’s insureds the right to resolve those disputes through use of alternative dispute resolution methods, rather than lengthy and costly litigation. The Act has the ability to return Florida to a healthy insurance market, which ultimately means the potential for more options for insureds with reduced premiums.

[1] The Act includes several other provisions intentionally omitted from this article, as it falls outside the article’s intended scope.

[2] Factors outside the insurer’s control are defined as: (1) a state of emergency issued by the Governor, a breach of security, or an information technology issue; and (2) actions by the insurer or insurer’s representative that constitute fraud, lack of cooperation, or intentional misrepresentation.

[3] https://www.insurancebusinessmag.com/us/news/breaking-news/aob-abuse-in-florida-rises-70-in-15-years-163448.aspx

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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Cozen O'Connor's Property Insurance Law Observer

Florida’s “Assignment of Benefits” Bill: A Guide Through the New Statutory Framework

Florida H.B. 7065 , expected to take effect July 1, 2019, makes several key statutory changes designed to curb AOB practices. We discuss a few of those highlights here.

The bill establishes several new sections of the Florida Statutes, including Fla. Stat. § 627.7152. § 627.7152(2)(a) sets requirements for a proper assignment of benefits:

627.7152 Assignment agreements.—

(2)(a) An assignment agreement must:

1) Be in writing and executed by and between the assignor and the assignee.

2) Contain a provision that allows the assignor to rescind the assignment agreement without a penalty or fee by submitting a written notice of rescission signed by the assignor to the assignee within 14 days after the execution of the agreement, at least 30 days after the date work on the property is scheduled to commence if the assignee has not substantially performed, or at least 30 days after the execution of the agreement if the agreement does not contain a commencement date and the assignee has not begun substantial work on the property.

3) Contain a provision requiring the assignee to provide a copy of the executed assignment agreement to the insurer within 3 business days after the date on which the assignment agreement is executed or the date on which work begins, whichever is earlier. . . .

4) Contain a written, itemized, per-unit cost estimate of the services to be performed by the assignee. . . .

Under § 627.7152(2)(a), contractors will no longer be able to blindside their customers and insurers with exorbitant bills with the expectation that an insurance company will eventually pay it. Now, contractors will be required to provide detailed estimates in advance of performing the work in order to effectively obtain an assignment of insurance benefits. Further, the assignee must promptly notify the insurer of the assignment. Insurers will now be able to monitor costs as they are incurred and ensure contractors are not performing unnecessary repairs.

In the event of litigation, § 627.7152(3) addresses the burden of the assignee:

(3) In a claim arising under an assignment agreement, an assignee has the burden to demonstrate that the insurer is not prejudiced by the assignee’s failure to:

(a) Maintain records of all services provided under the assignment agreement.

(b) Cooperate with the insurer in the claim investigation.

(c) Provide the insurer with requested records and documents related to the services provided, and permit the insurer to make copies of such records and documents.

(d) Deliver a copy of the executed assignment agreement to the insurer within 3 business days after executing the assignment agreement or work has begun, whichever is earlier.

Like a policyholder, assignees must cooperate with the insurer. If an assignee fails to maintain records, provide the insurer requested documents, or deliver the agreement as required by § 627.7152(2)(a), the assignee will bear the burden in litigation of demonstrating a lack of prejudice to the insurer.

In order to even get into a courtroom, however, § 627.7152(9)(a) requires assignees to serve written notice at least 10 business days prior to filing suit. The notice must include, among other things, the amount of damages in dispute, the amount claimed, and a pre-suit settlement demand. The assignee must also provide a detailed written invoice or estimate of services, the number of labor hours, and in the case of work performed, proof that the work has been performed in accordance with “accepted industry standards.” Upon receipt of the notice,

(b) An insurer must respond in writing to the notice within 10 business days after receiving the notice specified in paragraph (a) by making a presuit settlement offer or requiring the assignee to participate in appraisal or other method of alternative dispute resolution under the policy. An insurer must have a procedure for the prompt investigation, review, and evaluation of the dispute stated in the notice and must investigate each claim contained in the notice in accordance with the Florida Insurance Code.

Insurers have an opportunity to avoid litigation through negotiation or appraisal. Assignees are encouraged to make reasonable settlement demands and to consider reasonable offers because failure to do so can trigger an award of attorney’s fees in the insurer’s favor:

(10) Notwithstanding any other provision of law, in a suit related to an assignment agreement for post-loss claims arising under a residential or commercial property insurance policy, attorney fees and costs may be recovered by an assignee only under s. 57.105 and this subsection.

(a) If the difference between the judgment obtained by the assignee and the presuit settlement offer is:

1) Less than 25 percent of the disputed amount, the insurer is entitled to an award of reasonable attorney fees.

2) At least 25 percent but less than 50 percent of the disputed amount, no party is entitled to an award of attorney fees.

3) At least 50 percent of the disputed amount, the assignee is entitled to an award of reasonable attorney fees.

Fla. Stat. § 627.428 is the one way attorney’s fee shifting statute in Florida’s insurance code. This statute generously provides fee-shifting to “prevailing” policyholders and claimants, including following negotiated settlements in contravention of the general American rule. Under the new AOB statute, § 627.7152(10), awards of attorney’s fees are discretionary in suits against insurers by assignees. Further, § 627.7152(10) requires assignees to obtain a judgment of an amount at least 50% greater than the insurer’s pre-suit settlement offer in order to obtain an award of attorney’s fees. For additional encouragement to accept reasonable settlement offers, assignees who fail to obtain a judgment at least 25% greater may be required to pay the insurer’s attorney’s fees.

Last, insurers can avoid “assignment of benefits” issues altogether by prohibiting AOBs in their policies. The bill creates a new § 627.7153, which allows “[a]n insurer may make available a policy that restricts in whole or in part an insured’s right to execute an assignment agreement” if certain conditions are met. Those conditions include that the insurer must also provide unrestricted coverage, the restricted policy is available at a lower cost than the unrestricted policy, policies prohibiting assignment in whole cost less than policies prohibiting assignment in part, and restricted policies must contain notice on its face.

With the passage of this new law, Florida will see a new litigation landscape in the area of assignment of benefits. The law is prospective only, so it will not technically impact existing AOB litigation. However, through passage of this law, Florida has disincentivized unscrupulous contractors and leveled the courtroom playing field and the presently rampant AOB litigation should begin to fade. Ultimately, these changes are expected to benefit Florida policyholders with reduced insurance premiums.

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The Florida Contractor’s Guide to AOBs: Laws, Requirements, and FAQs

In Florida, the use of an assignment of benefits (AOB) has become increasingly popular as a means of streamlining property insurance claims. They also have come under fire from insurance carriers, and as part of the recent sweeping property insurance reforms in Florida, the Florida legislature banned the future use of AOBs in property claims. But they’re not gone yet — at least for insurance policies issued before 2023.

But even for those pre-2023 policies, Florida law extensively regulates the use of AOBs. Whether you’re a roofer, restoration pro, or general contractor, you need to know about these rules and regulations if you want to legally use an AOB in Florida. The cost of violating these rules is high, often meaning the AOB is void and entirely unenforceable! So read on to make sure you comply with Florida AOB law.

Table of Contents

How Recent Property Insurance Reforms in Florida Affect AOBs

In December 2022, the Florida legislature enacted Senate Bill 2-A, a game-changing law that transformed the property insurance landscape in Florida. Among other major changes to Florida property insurance and claims, SB 2-A effectively outlawed the future use of assignment of benefits in property insurance claims. Under the new reforms, any homeowner’s insurance policy or commercial property insurance policy that issued on or after January 1, 2023 is not eligible for an AOB.

In other words, due to the 2022 Florida property insurance reforms, neither homeowners nor business property owners can enter an AOB if their insurance policy issued on or after January 1, 2023 .

Is an Assignment of Benefits Enforceable under Florida Law?

Maybe. The answer depends on whether the underlying policy issued before January 1, 2023, and whether the assignment of benefits complies with all the requirements of Section 627.7152, Florida Statues. If the answer to either of those questions is no, then the AOB is not enforceable for property claims in Florida.

Requirements for an Enforceable AOB in Florida

The issue of whether an AOB in Florida is enforceable is complicated. To make the issue more understandable, we’ve broken it down in the sections below.

The Underlying Policy Must Have Issued Before January 1, 2023

As we’ve said already, the threshold question for whether an AOB is enforceable in Florida is when the applicable policy issued. If the policy issued on or after January 1, 2023, that’s the end of the story — any AOB based on that policy is unenforceable, full stop.

The AOB contract must meet the requirements of Section 627.7152(2), Florida Statutes.

If the insurance policy issued before 2023, then the AOB still must comply with the rest of Section 627.7152, Florida Statutes. In particular, under Section 627.7152(2)(a), an assignment of benefits is not enforceable in Florida unless the AOB contract meets all of the following requirements:

The AOB contract must be in writing and signed by both parties.

Florida law requires that an AOB contract “[b]e in writing and executed by and between the assignor and the assignee.” Section 627.7152(2)(a)(2), Florida Statutes .

This one is straightforward: An AOB isn’t enforceable in Florida unless both your company and the policyholder sign a written AOB contract.

The AOB contract must explicitly allow the policyholder to rescind the AOB without penalty within certain periods

Florida law requires that an AOB contract “[c]ontain a provision that allows the assignor to rescind the assignment agreement without a penalty or fee by submitting a written notice of rescission signed by the assignor to the assignee within 14 days after the execution of the agreement, at least 30 days after the date work on the property is scheduled to commence if the assignee has not substantially performed, or at least 30 days after the execution of the agreement if the agreement does not contain a commencement date and the assignee has not begun substantial work on the property.” Section 627.7152(2)(a)(3), Florida Statutes .

Don’t forget, this provision doesn’t just give a policyholder rights to rescind an AOB within the time periods stated above — it requires that the AOB contract actually contain the statutory language giving the policyholder those rights.

Also, the AOB contract needs to include all of this statutory language. At least one court has suggested that if even part of this language is missing, then the AOB does not meet the requirements of Section 627.7152, Florida Statues, and is therefore invalid and unenforceable. JPJ Servs. LLC v. New Hampshire Ins. Co. , No. 21-14329-CIV, (S.D. Fla. June 3, 2022) .

The AOB contract must explicitly require you to notify the insurance company about the AOB

Florida law requires that an AOB contract “[c]ontain a provision requiring the assignee to provide a copy of the executed assignment agreement to the insurer within 3 business days after the date on which the assignment agreement is executed or the date on which work begins, whichever is earlier. Delivery of the copy of the assignment agreement to the insurer may be made: a. By personal service, overnight delivery, or electronic transmission, with evidence of delivery in the form of a receipt or other paper or electronic acknowledgment by the insurer; or b. To the location designated for receipt of such agreements as specified in the policy.” Section 627.7152(2)(a)(4), Florida Statutes .

When the AOB contract is signed, it must contain an itemized, per-unit cost estimate of the repair work.

Florida law requires that an AOB contract “[c]ontain a written, itemized, per-unit cost estimate of the services to be performed by the assignee.” Section 627.7152(2)(a)(5), Florida Statutes .

Two important notes here.

First, you need to attach the estimate to the AOB before the policyholder signs the AOB . Providing an estimate to the policyholder after the parties sign the AOB puts the AOB at risk of being attacked as unenforceable. Several Florida contractors have learned this the hard way. In one case, a court held that providing the estimate to the property owner just one day after the parties had signed the AOB rendered it unenforceable. JPJ Servs. LLC v. New Hampshire Ins. Co. , No. 21-14329-CIV (S.D. Fla. June 3, 2022) .

Second, the estimate needs to be detailed . A top-line price for the work won’t suffice. Nor will a standard pricing list for products or services. In fact, a Florida appellate court has specifically decided that a standard pricing list for remediation services attached to an AOB did not qualify as an “itemized, per-unit cost estimate” under Section 627.7152(2)(a)(5) and therefore the AOB was void and unenforceable. Air Quality Experts Corp. v. Fam. Sec. Ins. Co., 351 So. 3d 32 (Fla. Dist. Ct. App. 2022) .

The AOB contract must be limited to repairs or mitigation for dwellings and structures

Florida law provides that the AOB contract “must relate only to work to be performed by the assignee for services to protect, repair, restore, or replace a dwelling or structure or to mitigate against further damage to such property.” Section 627.7152(2)(a)(6), Florida Statutes .

The AOB contract must contain a very specific notice to the policyholder

Specifically, Florida law requires that the AOB contract contain the following notice in 18-point uppercase and boldfaced type:

YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY. HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR PROPERTY INSURANCE POLICY.

Section 627.7152(2)(a)(6), Florida Statutes .

In the AOB contract, you must indemnify the policyholder.

Under Florida law, the AOB must “[c]ontain a provision requiring the assignee to indemnify and hold harmless the assignor from all liabilities, damages, losses, and costs, including, but not limited to, attorney fees.” Section 627.7152(2)(a)(7), Florida Statutes .

The AOB contract cannot contain a penalty or fee for rescission, processing checks, cancelling the agreement, or administrative costs.

Under Florida law, “an assignment agreement may not contain: 1. A penalty or fee for rescission under subparagraph (a)3.; 2. A check or mortgage processing fee; 3. A penalty or fee for cancellation of the agreement; or 4. An administrative fee.” Section 627.7152(2)(b), Florida Statutes .

The Law Requires You to Cooperate with Insurance Carriers

Florida law set out very specific actions that a roofer, mitigation pro, restoration specialist, or other contractor working under an AOB must take when dealing with an insurance company. The requirements are specific enough that it’s worth reproducing the statutory language directly:

A [contractor, roofer, restoration pro, etc.] (a) Must provide the assignor with accurate and up-to-date revised estimates of the scope of work to be performed as supplemental or additional repairs are required. (b) Must perform the work in accordance with accepted industry standards. (c) May not seek payment from the assignor exceeding the applicable deductible under the policy unless the assignor has chosen to have additional work performed at the assignor’s own expense. (d) Must, as a condition precedent to filing suit under the policy, and, if required by the insurer, submit to examinations under oath and recorded statements conducted by the insurer or the insurer’s representative that are reasonably necessary, based on the scope of the work and the complexity of the claim, which examinations and recorded statements must be limited to matters related to the services provided, the cost of the services, and the assignment agreement. (e) Must, as a condition precedent to filing suit under the policy, and, if required by the insurer, participate in appraisal or other alternative dispute resolution methods in accordance with the terms of the policy. Section 627.7152(4), Florida Statutes .

Limited Reimbursements for Emergency Repair AOBs

Contractors should know that Florida law limits insurance reimbursements for emergency repairs, such as roof tarping and water mitigation. Specifically, Section 627.7152(2)(c), Florida Statutes , caps insurance reimbursements for AOB repairs made under “urgent or emergency circumstances” at $3,000 or 1 percent of the applicable Coverage A limit, whichever is greater. Section 627.7152(2)(d), Florida Statutes . In addition, if the AOB contract provides for reimbursement beyond these limits, the AOB is invalid and unenforceable. The statute defines “urgent or emergency circumstances” as “a situation in which a loss to property, if not addressed immediately, will result in additional damage until measures are completed to prevent such damage.”

Collecting Against Policyholders Prohibited

By signing an AOB, you permanently waive your right to collect from or sue the policyholder for payments owed for services described in the AOB. This waiver of your right to collect or sue is fundamental to the AOB, and specifically covered by statutes. In Florida, the waiver applies even if the policyholder rescinds the AOB or the AOB is later held to be invalid.

There are a few important exceptions to the general waiver above. Specifically, a policyholder is responsible for:

Any applicable deductible.
Any betterment ordered and performed that is approved by the named insured.
Any contracted work performed before the assignment agreement is rescinded.

Section 627.7152(7), Florida Statutes .

Advocacy Resource Center

You are here: advocacy resources > legislative summaries > 2022d special session legislative summary > property insurance > assignment of benefits (aob).

Assignment of Benefits (AOB)

pp. 40–45; §627.7152, F.S.

Revises the definition of “assignment agreement” to include assignments executed by a party that inspects the property, clarifies that public adjuster fees are not an assignment agreement, and clarifies the requirement to provide a Notice of Intent to Initiate Litigation before filing suit.

Requires that a valid AOB must specify that the assignee will hold harmless the assignor from all liabilities, including attorney fees.

Eliminates statutory language detailing the methodology for awarding attorney fees to plaintiffs or defendants in litigation brought by an assignee of benefits under a property insurance policy.

The AOB attorney fee language is no longer necessary because the bill prohibits assignment of the right to recover attorney fees in suits arising out of a property insurance policy.

Effective date: May 26, 2022, except as otherwise provided

Chapter No. 2022-268, LOF

Florida’s New Assignment of Benefits Law

A new assignment of benefits (AOB) law that came into effect here in Florida in July alters the practice of policyholders assigning third-party claim benefits of an insurance policy and could very well change the insurance litigation landscape in Florida.

The Bill’s Provisions

Prior to now, the combination of this practice with Florida’s one-way attorney fee statute allowed policyholders to recover attorney’s fees from an insurer. However, the new law that went into effect establishes a number of requirements when it comes to assignment agreement, including:

Prohibiting certain fees and provisions;
Requiring insurers to report data on claims being paid by early 2022;
Transfers multiple pre-suit duties to assignees; and
Starting in 2023, enables insurers to prohibit assignment, revises the state of Florida’s one-way attorney fee statute, and requires service providers to provide insurers with at least 10 days’ notice before filing a legal complaint.

Purpose & Effect

According to the legislators behind it, the law was passed in response to a decade of “abusive litigation tactics in Florida’s market.” However, the bill has been labeled a “consumer protection measure,” passed in response to a policyholder benefit that has caused higher rates for Florida property owners.

According to some sources, AOB lawsuits have exploded in recent years – especially in South Florida – leading to some insurers to increase rates for most-all of its homeowner’s policyholders to offset litigation expenses. That being said, insurers have also cited the fact that three hurricane seasons in a row have created certain unavoidable obstacles when it comes to elevated insurance rates. In addition, it is important to note that the insurance industry is celebrating this as a legislative victory, and while they expect a reduction in AOB litigation, they do not expect an overall reduction in insurance litigation.

Other Measures Now in Effect

In addition to AOB reform, other legislation – referred to as Florida’s omnibus insurance bill – will also have effects on the state insurance industry by imposing a right to contribution for defense costs for insureds who owe a duty to defend an insured. This is expected to have an important effect on construction defect claims and litigation, where an insured is covered under multiple insurance policies. While, historically, the first insurer would end up covering defense costs, now, these expenses are apportioned in accordance with the terms of the policies. The bill also makes some important changes to Florida’s bad faith statute, precluding parties from filing Civil Remedy Notices for 60 days after an appraisal is invoked in residential insurance disputes, essentially allowing insurers to pay appraisal awards without potential liability for extra contractual damages.

Contact Our Florida Insurance Litigation Attorneys with Any Questions

If you have any questions about the effect of the new law, or any insurance legal issue, contact our Sarasota insurance litigation attorneys at HD Law Partners today to find out how we can help.

flarecord.com/stories/512713451-insurance-office-foresees-difficult-road-ahead-of-new-assignment-of-florida-benefits-law

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On April 26, 2022, Governor Ron DeSantis signed a proclamation calling on the Florida Legislature to convene for a special session in response to Florida’s current property insurance market. The formal call was to consider legislation related to property insurance, reinsurance, changes to the Florida building code to improve affordability of property insurance, the Florida Office of Insurance Regulation, civil remedies, and appropriations. The proclamation called for the special session to convene from May 23 through May 27, but the Legislature was able to complete their work in only three days and adjourned Sine Die on May 25.

On May 20, the House and Senate released their respective identical proposals, which included measures related to reinsurance, roof solicitation, roof underwriting, bad faith, attorneys’ fees, insurer regulation and transparency, and building codes.

Representative Jay Trumbull (R-Panama City), House Appropriations chair, sponsored the House measures. In a memo to legislators, he stated that the policies they developed would help curb abuses in the market without creating unintended consequences.

Senator Jim Boyd (R-Bradenton), Senate Banking and Insurance Committee chair, sponsored the Senate bills. He explained to members in a memo that the Senate proposals looked to balance fair costs and protections for consumers while creating reasonable guardrails for insurance companies against frivolous litigation and fraudulent claims that drive up rates for everyone.

On the second day of the special session, Speaker of the House Chris Sprowls (R-Clearwater) announced the House and Senate had agreed to expand the call of Special Session D to include legislation relating to building safety. The legislation was aimed at reforming laws governing condominiums and cooperative associations in the wake of the June 2021 collapse of the Champlain Towers condominium in Surfside, Florida.

At the conclusion of the third day, legislators passed CS/SB 2D, relating to Property Insurance, and SB 4D, relating to Building Safety, both by Senator Boyd. Governor DeSantis signed SB 2D and SB 4D into law May 26. Except as otherwise expressly provided in the bills, they became effective upon the signature of the Governor. This GT Alert provides a breakdown of both pieces of legislation.

CS/SB 2D : Property Insurance

Reinsurance to assist policyholders (rap) program.

Authorizes a $2 billion reimbursement layer of reinsurance for hurricane losses directly below the mandatory layer of the Florida Hurricane Catastrophe Fund (FHCF). All eligible insurers must participate in the program.

The FHCF mandatory retention is $8.5 billion for the 2022-2023 contract year.

Requires the RAP program to reimburse 90% of each insurer’s covered losses and 10% of their loss adjustment expenses up to each individual insurer’s limit of coverage for the two hurricanes causing the largest losses for that insurer during the contract year.

Specifies that each insurer’s limit of the $2 billion in RAP coverage is their pro-rata market share among all insurers that participate in the RAP program. Thus, an insurer with five percent of the risk reinsured by RAP coverage would have a limit of coverage of $100 million.

Requires all eligible insurers to participate in the RAP program for one year. Insurers that do not have private reinsurance within the RAP layer of coverage for the 2022-2023 contract year must participate during the 2022-2023 contract year. Insurers that have private reinsurance at the RAP layer for the 2022-2023 contract year must defer using RAP program coverage until the 2023-2024 contract year. A RAP insurer that has any private reinsurance that duplicates RAP coverage for the 2022-2023 contract year must notify the State Board of Administration (SBA) (the program administrator) of the private reinsurance and must defer participation in the RAP program until the 2023-2024 contract year.

Prohibits an insurer from obtaining RAP coverage if the Insurance Commissioner certifies it is in “unsound financial condition.”

Specifies that insurers do not pay premiums for RAP program coverage but must reduce rates to reflect savings. Insurers that participate in the RAP program for 2022-2023 must reduce their rates by June 30, 2022, to reflect the savings from RAP coverage. Insurers that defer using the RAP program until 2023-2024 must reduce rates to reflect savings by May 1, 2023.

Provides funding for the RAP coverage through a $2 billion appropriation from the General Revenue Fund. Monies are only transferred to the SBA if the RAP program coverage must be paid because of a hurricane.

Specifies that, if funds are transferred to the SBA because of a hurricane, the SBA may request funds for the administration of the program from the General Revenue Fund, not to exceed $5 million.

Provides the RAP program expires July 1, 2025, if no General Revenue funds have been transferred to fund the RAP program. If such funds were transferred, the statute expires July 1, 2029, and all unencumbered RAP Program funds must be transferred back to the General Revenue Fund.

My Safe Florida Home Program

Appropriates $150 million from the General Revenue Fund to the Department of Financial Services’ My Safe Florida Home Program to provide hurricane mitigation inspections and matching grants for the performance of hurricane retrofitting on homestead single family homes with a value of $500,000 or less located in the wind-borne debris region set forth in the Florida Building Code. The My Safe Florida Home Program, which is administered by the Department of Financial Services, will provide financial incentives for Florida residential property owners to obtain free home inspections that would identify mitigation measures and provide grants to retrofit such properties, thereby reducing their vulnerability to hurricane damage and helping decrease the cost of residential property insurance.

Establishes additional eligibility criteria:

Requires that a homeowner who participates in the program agree to make his or her home available for inspection after the mitigation project is completed.

Requires that a building permit for initial construction of the home was made before Jan. 1, 2008.

Requires the home to have undergone an acceptable hurricane mitigation inspection after July 1, 2008.

Requires that grants awarded under the program provide $2 in grant funds for every $1 provided by the homeowner. Exceptions are provided for low-income homeowners. Applicants may receive up to $10,000 in program money.

Requires the Department of Financial Services to include in the annual report of program activities the average annual amount of insurance premium discounts and the total of such discounts received from insurers.

Allocates appropriated funds as follows:

$25 million for hurricane mitigation inspections.

$115 million for hurricane mitigation grants.

$4 million for education and consumer awareness.

$1 million for public outreach to contractors, real estate brokers, and sales associates.

$5 million for administrative costs.

Provides that any unexpended balance of appropriated funds remaining on June 30, 2023, reverts and is appropriated to the Department of Financial Services for the 2023-2024 fiscal year for the My Safe Florida Home program.

Contractor Solicitation of Roof Claims

Prohibits contractors from making written or electronic communications that encourage or induce a consumer to contact a contractor or public adjuster for the purposes of making a property insurance claim for roof damage unless such solicitation provides notice that:

The consumer is responsible for the payment of any deductible.

It is insurance fraud punishable as a third-degree felony for a contractor to pay or waive an insurance deductible.

It is insurance fraud punishable as a third-degree felony to intentionally file an insurance claim containing false, fraudulent, or misleading information.

Separate Roof Deductible

Allows property insurers to include in the policy a separate roof deductible of up to two percent of the Coverage A limit of the policy or 50% of the cost to replace the roof. The policyholder must also be offered the option to decline the roof deductible by signing a form approved by the Office of Insurance Regulation (OIR). If a roof deductible is added to the policy at renewal, the insurer must provide a notice of change in policy terms and allow the policyholder to decline the separate roof deductible.

Requires that policyholders that select a roof deductible receive an actuarially sound premium credit or discount.

Provides that the roof deductible does not apply to:

A total loss to the primary structure in accordance with the valued policy law under s. 627.702, F.S., which is caused by a covered peril.

A loss caused by a hurricane.

A roof loss resulting from a tree fall or other hazard that damages the roof and punctures the roof deck.

A roof loss requiring the repair of less than 50% of the roof.

Specifies that when a roof deductible is applied, no other deductibles under the policy may be applied.

Specifies that a roof deductible only applies to a claim adjusted on a replacement cost basis.

Authorizes an insurer to limit the claim payment for a roof to the actual cash value of the loss to the roof until the insurer receives reasonable proof of payment by the policyholder of the roof deductible.

Requires a roof deductible provision to be clear and unambiguous.

Requires inclusion of the following disclosures:

On the page immediately behind the declarations page, notice that a roof deductible may result in high out-of-pocket expenses to the policyholder.

On the policy declarations page, prominent display of the actual dollar value of the roof deductible at issuance and renewal. Allows an insurer to limit payment on a roof claim to actual cash value until the policyholder pays the roof deductible.

Roofs | Insurer Underwriting

Prohibits an insurer from refusing to issue or refusing to renew a homeowner’s insurance policy insuring a residential structure with a roof that is less than 15 years old solely because of the age of the roof.

Requires that, if the roof is at least 15 years old, an insurer must allow a homeowner to have a roof inspection performed by an authorized inspector at the homeowner’s expense before requiring the replacement of the roof as a condition of issuing or renewing a homeowner’s insurance policy. The insurer may not refuse to issue or refuse to renew a homeowner’s insurance policy solely because of roof age if an inspection of the roof of the residential structure performed by an authorized inspector indicates that the roof has five years or more of useful life.

Insurer Claims Handling

Requires property insurers to conduct any physical inspection of the property related to a claim within 45 days of receiving proof of loss statements. Does not apply to hurricane claims.

Requires insurers to notify policyholders of their right to receive any detailed report generated by an insurer’s adjuster that estimates the amount of the loss. The report must be provided to the requesting policyholder within the later of seven days after the policyholder requests the report or the completion of the report.

Specifies insurers must provide a reasonable explanation of the claim decision in relation to the insurance policy, facts, and law. If the insurer makes a claim payment that is less than contained in the insurer’s adjuster estimate of the loss, the insurer must explain the discrepancy.

Civil Remedy

Requires a claimant to establish a property insurer breached the insurance contract in order for the claimant to prevail in a bad faith claim for extracontractual damages under s. 624.155(1)(b), F.S. Will apply to civil remedy actions based upon a property insurer:

Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for his or her interests;

Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; or

Except as to liability coverages, failing to settle claims promptly, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy.

Assignment of Benefits (AOB)

Requires that a valid AOB specify that the assignee will hold harmless the assignor from all liabilities, including attorney fees.

Attorney Fees | AOB

Prohibits assignment of the right to obtain attorney fees in suits arising out of a property insurance policy to persons other than a named or omnibus insured or a named beneficiary under the policy. Result is that assignment agreements may occur, but the assignee vendor will no longer be able to recover attorney fees in suits against an insurer. Applies to property insurance lawsuits brought by vendor assignees against authorized insurers and surplus lines insurers.

Eliminates statutory language detailing the methodology for awarding attorney fees to plaintiffs or defendants in litigation brought by an assignee of benefits under a property insurance policy. The language is no longer necessary because the bill prohibits assignment of the right to recover attorney fees in suits arising out of a property insurance policy.

Attorney Fees | Fee Multipliers

Creates a new standard for the award of an attorney fee multiplier in property insurance litigation. The bill creates a presumption that in property insurance cases, attorney fee awards based on the Lodestar methodology are sufficient and reasonable. Attorney fee multipliers may only be awarded under rare and exceptional circumstances with evidence that competent counsel could not be hired in a reasonable manner.

Allows a court to award attorney fees when a first-party claimant’s property insurance suit is dismissed without prejudice for failure to provide a Notice of Intent to Initiate Litigation.

Attorney Fees | Dismissal for Failure to Provide Notice

Provides that a defendant insurer may obtain attorney fees and costs associated with securing a dismissal without prejudice for failure to provide the required Notice of Intent to Initiate Litigation at least 10 days before filing a suit against a property insurer.

Regulation of Insurers and Insurer Transparency

Requires the OIR to publish all orders, specified insurance industry data, and reports issued by the newly created Property Insurance Stability Unit. The scope of the Property Insurance Stability Unit is limited to matters related to homeowner and condominium unit owner insurance.

Requires the OIR within the annual statistical report to include an analysis of the availability of reinsurance to domestic insurers selling homeowner and condominium unit owner insurance in Florida.

Requires that the OIR include within its annual report additional data regarding property insurers against which delinquency or similar proceedings were instituted, a concise statement of the circumstances that led to each insurer’s delinquency, a summary of actions taken by the insurer and the OIR to avoid delinquency, and that shows results or status of each delinquency proceeding.

Requires the OIR to maintain and make available upon request reports relating to the health of the homeowner and condominium unit owner insurance market that include specified information regarding market trends and the percentage of policies written by voluntary carriers and Citizens Property Insurance Corporation.

Directs the OIR to make data publicly available detailing the statewide number of policies, amount of premium, number of cancellations, and other data for each property insurer. Specifies such information is not a trade secret.

Creates a Property Insurer Stability Unit within the OIR to aid in the detection and prevention of insurer insolvencies in the homeowner and condominium unit owner insurance market. Insurers must be referred to the unit for enhanced monitoring upon the occurrence of specified events. The unit must:

Provide enhanced monitoring when the OIR identifies significant concerns about various aspects of the insurer.

Conduct a target market conduct exam when there is reason to believe the insurer may be in an unsound financial condition.

Closely monitor insurer financial data.

Conduct annual catastrophe stress tests of domestic insurers.

Update wind mitigation credits.

Review the causes of insolvency and business practices of insurers referred to the Division of Rehabilitation and Liquidation within the Department of Financial Services.

Twice annually, provide a report on the status of the homeowner and condominium unit owner insurance market.

Requires the OIR to execute an affidavit identifying the grounds for initiating delinquency proceedings against an insurer.

For an insolvency involving a domestic property insurer, the Department of Financial Services must:

Begin an analysis of the history and causes of the insolvency no later than the initiation of delinquency proceedings against the insurer;

Review the OIR’s regulatory oversight of the insurer.

Submit an initial report analyzing the history and causes of the insolvency no later than two months after the initiation of the delinquency proceeding;

Provide a special report within 10 days of identifying any condition or practice that may lead to insolvency in the property insurance marketplace; and

Submit a final report analyzing the history and causes of the insolvency and the OIR’s regulatory oversight within 30 days of the conclusion of the insolvency proceeding.

SB 4D : Building Safety

The current Florida Building Code requires that not more than 25% of the total roof area or roof section of any existing building or structure be repaired, replaced or recovered in any 12-month period unless the entire existing roofing system or roof section is replaced to conform to requirements of the code.

The bill requires that the Florida Building Code stipulate that when 25% or more of a roofing system or roof section is being repaired, replaced, or recovered, only the portion of the roofing system or roof section undergoing such work must be constructed in accordance with the current Florida Building Code in effect at that time.

The bill creates an exception to this provision for roof systems and roof sections built, repaired, or replaced in accordance with the requirements of the 2007 Florida Building Code or subsequent editions.

The bill also includes provisions relating to the regulation of condominiums and cooperative associations. Many of these provisions were the substance of legislation filed during the 2022 Regular Session in response to collapse of the condominium in Surfside, Florida.

Creates a statewide building milestone inspection requirement for condominiums and cooperative buildings that are three stories or higher in height 30 years after initial occupancy and 25 years after initial occupancy for buildings located within three miles of the coast.

Requires inspections every 10 years after a building’s initial “phase 1” inspection.

Requires an additional, more intensive inspection, or a “phase 2 inspection,” if a building’s phase 1 inspection reveals substantial structural deterioration.

Requires building officials to provide written notice to associations when buildings must be inspected.

Requires phase 1 and phase 2 inspection reports be submitted to building officials and unit owners.

Provides local building officials with ability to assess penalties for failing to comply with the requirements for phase 1 and phase 2 inspections.

Requires condominiums and cooperatives to conduct structural integrity reserve studies every 10 years for buildings three stories or higher and prohibits waiver of funding for certain structural reserves.

Requires developers to complete structural integrity reserve studies for every building three stories or higher, prior to turning over an association to the unit owners.

Repeals the ability of developers to waive the collection of all types of reserve funds.

Requires structural integrity reserve study inspections, and phase 1 and phase 2 inspections to be performed by licensed engineers or architects.

Provides that structural integrity reserve studies, and phase 1 and phase 2 inspection reports are a part of an association’s official records and must be provided to a potential purchaser of a unit.

Provides that failing to perform a required structural integrity reserves study, or phase 1 or phase 2 inspection is breach of a board member or officer’s fiduciary duty.

Requires a community association manager to provide a milestone inspection report to a local building official, if the manager receives the report.

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Fla. Contractors File Suit Challenging Assignment of Benefits Law

A group of contractors wasted little time in challenging the constitutionality of a law approved at the Florida Legislature’s special session last week, one the restoration companies argue singles them out and deprives them of attorney fees in assignment-of-benefits claims.

“The inability to recover prevailing party attorneys’ fees will effectively shut the courthouse door to plaintiffs because it will be cost-prohibitive to pay an attorney for these types of of small claims,” reads the complaint, filed in Leon County Circuit Court by Restoration Association of Florida and Air Quality Assessors.

Senate Bill 2D, passed largely along party lines, bars assignees of benefits from collecting attorney fees, even if they prevail in court. Insurers have long complained that the fees, coupled with Florida’s fee multiplier, is encouraging unnecessary claims litigation and is costing the industry huge sums every year.

The lawsuit argues that “deprivation of this right is significant because SB 2D wrongfully treats contractors, as assignees, disparately from homeowners and insurers.”

Some lawmakers and insurance industry advocates at the special session predicted the bill would be challenged by contractors, just as 2021’s Senate Bill 76 was challenged, then was temporarily suspended by a court. SB 76 sought to bar roofing contractors from soliciting homeowners and encouraging them to file insurance claims on roof damage. A federal judge has said the law may violate contractors’ constitutional rights to free speech.

Restoration Association did not bring that challenge, but it is no stranger to Florida insurers. The association’s president is Richie Kidwell, who also owns Air Quality Assessors, a mold-remediation firm. He spoke forcefully against SB 2D at the May 23-25 special session. Kidwell and his group also recently filed suit against the Florida insurance commissioner and two carriers over their policy endorsements.

One endorsement, by American Integrity Insurance, offers premium discounts for policyholders who agree to binding arbitration in claims disputes. Another, by Heritage Property & Casualty Insurance, states that the insurer won’t pay contractors, but will only reimburse the insured for restoration work, effectively barring AOB claims.

That suit and the May 31 challenge to SB 2D were filed by Boca Raton attorney Joshua Alper and the Center for Constitutional Litigation.

A Florida law professor said neither suit stands much chance of succeeding.

“In a word, this lawsuit isn’t going anywhere,” Robert Jarvis, a professor at Nova Southeastern School of Law, said about the challenge to SB 2D.

He explained that it’s very difficult to win a lawsuit based on the Florida Constitution’s equal protection clause, Article I, Section 2. “That’s because the clause only protects plaintiffs who are ‘similarly situated’ to people or groups that aren’t impacted by the law the plaintiffs are challenging,” Jarvis said. “But there’s almost always some difference between the plaintiffs and non-plaintiffs.”

Jarvis said that in weighing the validity of an economics-regulation law, the courts use a “rational basis” test. The defendants, in this case the Florida Department of Business and Professional Regulation, need only show that some rational basis exists for distinguishing the targets of the law – the assignees of benefits.

“This is a very easy standard to meet—there’s almost always some rational basis that supports the law and the distinctions it draws,” said Jarvis, who studies and teaches constitutional law and contract law. “In passing laws, the Florida Legislature is not required to address every ill. Thus, singling out just AOB contractors is a perfectly legitimate exercise of the Legislature’s powers.”

The plaintiffs must also show that the law is clearly unconstitutional, but courts have generally found that, while they may disagree with a piece of legislation, they won’t usually nullify it.

“Judges often opine that there was a better solution that the Legislature could and should have selected, but they won’t strike down a law simply because it’s not the best solution,” Jarvis explained in an email. “They leave that to the Legislature (which can always see the error of its ways and enact a new law) and the people (who can always set things right by electing new legislators).”

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Categories: Southeast News Topics: assignment of benefits , attorney fees , fee multiplier , Florida legislatures , lawsuit , Restoration Association of Florida , Senate Bill 2D , special session
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Florida's assignment of beneﬁts crisis

Runaway litigation is spreading, and consumers are paying the price.

DOWNLOAD TO PDF

It is a standard practice throughout the insurance world: As a convenience, a policyholder grants a third party – an auto glass repair company, a medical practitioner, a home contractor – permission to directly bill an insurer to settle a claim. That practice is called an assignment of benefits, usually known by the acronym, AOB.

In Florida, abuse of AOBs has fueled an insurance crisis. The state’s legal environment has encouraged vendors and their attorneys to solicit unwarranted AOBs from tens of thousands of Floridians, conduct unnecessary or unnecessarily expensive work, then file tens of thousands of lawsuits against insurance companies that deny or dispute the claims. This mini-industry has cost consumers billions of dollars as they are forced to pay higher premiums to cover needless repairs and excessive legal fees. And consumers often do not even know that their claims are driving these cost increases.

The abuse therefore acts somewhat like a hidden tax on consumers, helping to increase what are already some of the highest insurance premiums in the country.

This report discusses how AOB abuse works, how and why it is spreading, and how it is contributing to higher insurance costs for Florida consumers.

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IRS: Home improvements could help taxpayers qualify for home energy credits

What taxpayers need to know

Taxpayers can claim the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit for the year the qualifying expenditures are made.

Homeowners who improve their primary residence will find the most opportunities to claim a credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences. Landlords cannot claim this credit.

IRS encourages taxpayers to review all requirements and qualifications at IRS.gov/homeenergy for energy efficient equipment prior to purchasing. Additional information is available on energy.gov , which compares the credit amounts for tax year 2022 and tax years 2023-2032.

Energy Efficient Home Improvement Credit

Taxpayers that make qualified energy-efficient improvements to their home after Jan. 1, 2023, may qualify for a tax credit up to $3,200.

As part of the Inflation Reduction Act, beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses:

Exterior doors, windows and skylights.
Insulation and air sealing materials or systems.
Natural gas, propane or oil water heaters.
Natural gas, propane or oil furnaces and hot water boilers.
Heat pumps, water heaters, biomass stoves and boilers.
Home energy audits of a main home.

The maximum credit that can be claimed each year is:

$1,200 for energy property costs and certain energy efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600) and home energy audits ($150).
$2,000 per year for qualified heat pumps, biomass stoves or biomass boilers.

The credit is nonrefundable which means taxpayers cannot get back more from the credit than what is owed in taxes and any excess credit cannot be carried to future tax years.

Residential Clean Energy Credit

Taxpayers who invest in energy improvements for their main home, including solar, wind, geothermal, fuel cells or battery storage, may qualify for an annual residential clean energy tax credit.

The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for a home in the United States installed anytime from 2022 through 2032.

Qualified expenses include the costs of new, clean energy equipment including:

Solar electric panels.
Solar water heaters.
Wind turbines.
Geothermal heat pumps.
Fuel cells.
Battery storage technology (beginning in 2023).

Clean energy equipment must meet the following standards to qualify for the Residential Clean Energy Credit:

Solar water heaters must be certified by the Solar Rating Certification Corporation, or a comparable entity endorsed by the applicable state.
Geothermal heat pumps must meet Energy Star requirements in effect at the time of purchase.
Battery storage technology must have a capacity of at least 3 kilowatt hours.

This credit has no annual or lifetime dollar limit except for fuel cell property. Taxpayers can claim this credit every year they install eligible property on or after Jan. 1, 2023, and before Jan. 1, 2033.

This is a nonrefundable credit, which means the credit amount received cannot exceed the amount owed in tax. Taxpayers can carry forward excess unused credit and apply it to any tax owed in future years.

Additional information is available at IRS.gov on qualifying residences and information for taxpayers who also use their home for a business.

When it is time to file a tax return, taxpayers can use Form 5695, Residential Energy Credits , to claim the credit. This credit must be claimed for the tax year when the property is installed, not just purchased.

Good recordkeeping

Taxpayers are encouraged to keep good records of purchases and expenses. This will assist in claiming the applicable credit during tax filing season.

Other resources

Publication 5967, Energy Efficient Home Improvements Credit (25C) PDF
Publication 5968, Residential Clean Energy Credit (25D) PDF
energy.gov: Credit Comparison Chart
Fact sheet: Frequently asked questions about energy efficient home improvements and residential clean energy property credits PDF
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Marine Corps Combat Instructor Role Once Again a Special Duty Assignment

U.S. Marines with the School of Infantry-East, Combat Instructor School

Combat instructors -- Marines who teach entry-level devil dogs basic warfighting skills -- are once again a special duty assignment.

As of May, the combat instructor, which is open to infantry Marines, is again one of these assignments after it was dropped from the criteria several years ago. The change was announced by the service's Manpower and Reserve Affairs division earlier this month.

Special duty assignments, or SDAs, are billets outside of a Marine's primary job and include being a recruiter , drill instructor and security guard. Sometimes those assignments are voluntary, but other times Marines are ordered into them.

Read Next: Army Identifies Explosive Ordnance Officer Who Died After a Fall During Training at Fort Johnson

"I went through combat instructor school back in 2015," Gunnery Sgt. Tyler Stokes, an enlisted assignments monitor for combat instructors, said in a video released by the service. "It's an extremely rewarding duty because you actually get to affect and to teach the warfighting skills that all Marines learn through the entry-level training pipeline, and it's really critical for the operational readiness of the force."

Stokes said that the commandant of the Marine Corps , Gen. Eric Smith, issued guidance earlier this year that said the combat instructor role would once again be a special duty assignment.

Combat instructors teach Marines weapons handling, employment of automatic weapons, the nuances of munition types, land navigation, communications, tactics and patrolling, among other tasks critical for young troops entering the Corps.

Typically, tours for combat instructors, and other special duty assignments, are three years. Marines coming back for a second tour may have their assignment shortened to two years, according to a previous Marine Corps message.

Marines assigned to the combat instructor role are primarily sent to the Corps' two infantry schools, located on each coast. Specifically, they are assigned to Camp Pendleton , California, or Camp Lejeune , North Carolina.

Prior to being assigned to the installations, prospective combat instructors go through the Marine Combat Instructor School, or MCIS, a nine-week course that includes written exams, combat conditioning, employment of different weapons systems and other tasks that Marines will be expected to hand down to future generations of infantrymen.

The job is open to volunteers, a spokesperson from Manpower and Reserve Affairs wrote in an email to Military.com on Tuesday.

"However, it may be staffed with involuntary assignments to fill vacancies and achieve maximum billet fill," Capt. Sarah Eason, the spokesperson, added. "Unlike the other SDAs, there are only a limited number of combat instructor billets open to any primary military occupational specialty (MOS), and these routinely fill with volunteers."

The special duty assignment also comes with some perks, Eason said, including special pay , the Marine Corps Combat Instructor Ribbon, promotion board precepts, and a "choice of specific geographic area for the next duty station following tour completion," she said.

Related: Marine Corps Offering Thousands of Dollars in Bonuses in Push for More Intelligence Specialists

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Assignment Of Benefits Form 2020-2022

COMMENTS

The Current State of Assignment of Benefits Litigation in Florida
By: Senior Counsel Nhan T. Lee with Associate Wayne A. Comstock. On May 25, 2022, Florida lawmakers approved property insurance reforms that remove attorney's fees, with respect to assignment of benefits ("AOB") property insurance litigation. [1] One-way attorney's fees are a longstanding problem in Florida, [2] and the reforms come at a time when AOB litigation increasingly affects ...
Assignment of Benefits (AOB)
Assignment of Benefits (AOB) is an agreement that transfers the insurance claims rights or benefits of the policy to a third party. An AOB gives the third party authority to file a claim, make repair decisions, and collect insurance payments without the involvement of the homeowner. AOBs are commonly used in homeowners' insurance claims by ...
PDF ASSIGNMENT OF BENEFITS
WHAT IS AN ASSIGNMENT OF BENEFITS (AOB)? SENATE BILL 2A (2022) UPDATE: Any policy that was issued prior to January 1, 2023, provides a policyholder with the right to assign insurance benefits to a 3rd party as long as you have not chosen to give up that right in order to receive a premium discount.
An Update on Assignments of Benefits for Florida Contractors
As of the date of this post, under the December 16, 2022 revisions to 627.7152, Florida Statutes, contractors can use an assignment of benefits, and homeowners can enter into an assignment of benefits, if the insurance policy being assigned was issued on or after July 1, 2019 and before January 1, 2023. Based on this language, it appears that a ...
What Florida's New Insurance Statute (SB-2A) Means for Contractors
Section 627.7152—Florida's assignment of benefits law passed in 2019 and amended in May of 2022—is changed in two significant ways. First, 627.7152 (2) (a) (1) is added, and reads as follows: An assignment agreement must: be executed under a residential property insurance policy or under a commercial property insurance policy as that term ...
Florida Insurance Ruling Sets Precedent on New Assignment-of-Benefits
The state legislature added Florida Statutes Sec. 627.7152, which covered assignment agreements and required contractors to follow new rules to prevent them from taking advantage of homeowners and ...
Impact of Florida's New Assignment of Benefits Law: HB 7065
Benefits Law: HB 7065. On April 26, 2019, Florida Governor Ron DeSantis signed into law Florida House Bill 7065. The law, which took effect on July 1, 2019, was designed to reduce the amount of assignment of benefits ("AOB") agreements that could be signed between entities and insureds. Governor DeSantis signed H.B. 7065 into law ...
The AOB Guide for Florida Property Owners: Rights ...
If you want to learn more about the pros and cons of AOBs for policyholders, read our property owner's guide to an assignment of benefits. How Recent Property Insurance Reforms in Florida Affect AOBs. In December 2022, the Florida legislature enacted Senate Bill 2-A, a game-changing law that transformed the property insurance landscape in ...
Florida CFO Calls for Ban on Assignments of Benefits, Limits on Public
A number of other states allow insurance policies to include non-assignment of benefits clauses. ... Categories: Southeast News Topics: assignment of benefits (AOB), Florida's ... October 20, 2022 ...
Assignment of Benefits Resources
Assignment of Benefits Data Calls. Section 627.7152 (12), Florida Statutes, provides for the collection of data on residential and commercial property insurance claims paid under AOB. The first data report required under the new statute is due January 30, 2022. In June 2019, OIR issued Informational Memorandum OIR-19-02M to notify insurers that ...
Florida: New Assignment of Benefits Bill
Tuesday, May 28, 2019. Print Mail Download i. A new law represents a major step forward to remedy Florida's assignment of benefits ("AOB") crisis, which Florida Governor Ron DeSantis has ...
Florida Court Strictly Enforces New Assignment of Benefits ...
Florida's Assignment of Benefits requirements. In 2019 Florida overhauled their assignment of benefits laws to curb growing concerns of AOB abuse within the state. "It is no secret that the State of Florida is currently in the midst an insurance crisis, which has resulted in numerous private insurance carriers to stop writing new homeowners ...
Assignment Limitations Begin with New Year
The Florida legislature passed significant property insurance reforms in its December 2022 special session. Governor Ron DeSantis promptly signed these reforms into law, with many taking effect immediately upon the law's effective date. However, a key change related to assignments of benefits (AOB) begins to have its real impact in the new year.
Chapter 627 Section 7152
2022 Florida Statutes (including 2022C, 2022D, 2022A, and 2023B) Title XXXVII INSURANCE. Chapter 627 INSURANCE RATES AND CONTRACTS Entire Chapter. ... an assignee may not receive an assignment of post-loss benefits under a residential property insurance policy in excess of the greater of $3,000 or 1 percent of the Coverage A limit under such ...
Florida's Property Insurance Reform: The Impact on Carriers and
The Florida Legislature passed Senate Bill 2-A ("SB2A" or the "Act"), which was signed into law on December 16, 2022. The Act has the potential to significantly reduce litigation of first ...
Florida's "Assignment of Benefits" Bill: A Guide Through the New
The bill establishes several new sections of the Florida Statutes, including Fla. Stat. § 627.7152. § 627.7152(2)(a) sets requirements for a proper assignment of benefits: 627.7152 Assignment agreements.— (2)(a) An assignment agreement must: 1) Be in writing and executed by and between the assignor and the assignee.
The Florida Contractor's Guide to AOBs: Laws, Requirements ...
In December 2022, the Florida legislature enacted Senate Bill 2-A, a game-changing law that transformed the property insurance landscape in Florida. Among other major changes to Florida property insurance and claims, SB 2-A effectively outlawed the future use of assignment of benefits in property insurance claims.
Assignment of Benefits (AOB)
Assignment of Benefits (AOB) ... Effective date: May 26, 2022, except as otherwise provided. Chapter No. 2022-268, LOF . Current rating: 0 (0 ratings) Share Post: Mission. To serve the needs of Florida insurance agents and consumers by promoting a healthy and competitive insurance environment. Contact Us. 3159 Shamrock South Tallahassee, FL ...
Florida's New Assignment of Benefits Law
A new assignment of benefits (AOB) law that came into effect here in Florida in July alters the practice of policyholders assigning third-party claim benefits of an insurance policy and could very well change the insurance litigation landscape in Florida. ... Requiring insurers to report data on claims being paid by early 2022; Transfers ...
Florida Passes Property Insurance Law During Special Session
May 2022 Special Session of Florida Legislature Concludes with Passage of Legislation Impacting Property Insurance and Building Safety. by: Fred E. Karlinsky, Timothy F. Stanfield, Christian Brito ...
Fla. Contractors File Suit Challenging Assignment of Benefits Law
A group of contractors wasted little time in challenging the constitutionality of a law approved at the Florida Legislature's special session last week, one the restoration companies argue ...
Florida's assignment of beneﬁts crisis
SPONSORED BY. It is a standard practice throughout the insurance world: As a convenience, a policyholder grants a third party - an auto glass repair company, a medical practitioner, a home contractor - permission to directly bill an insurer to settle a claim. That practice is called an assignment of benefits, usually known by the acronym, AOB.
How Florida's home insurance market became so dysfunctional ...
The bill also restricts assignment of benefits, a mechanism that permits third-party entities like roofing companies to negotiate with insurance companies on behalf of Florida residents. While ...
OIR Provides Update on Florida's Strengthening Property Insurance Market
TALLAHASSEE, Fla. - Today, the Florida Office of Insurance Regulation (OIR) issued an update on the continued strengthening of Florida's property and casualty insurance market, including that property insurance rate filings for 2024 show a downward trend for the first time in years, indicating the continued stabilization of the property insurance market.
Statutes & Constitution :View Statutes : Online Sunshine
The 2023 Florida Statutes (including Special Session C) 627.7152 Assignment agreements.—. (a) "Assignee" means a person who is assigned post-loss benefits through an assignment agreement. (b) "Assignment agreement" means any instrument by which post-loss benefits under a residential property insurance policy or commercial property ...
IRS: Home improvements could help taxpayers qualify for home energy
Additional information is available on energy.gov, which compares the credit amounts for tax year 2022 and tax years 2023-2032. Energy Efficient Home Improvement Credit . Taxpayers that make qualified energy-efficient improvements to their home after Jan. 1, 2023, may qualify for a tax credit up to $3,200.
Marine Corps Combat Instructor Role Once Again a Special Duty Assignment
The special duty assignment also comes with ... Drew won MVJ's Top 10 Veterans in Journalism award in 2022. ... operations wing in Florida where Senior Airman Roger Fortson served before he was ...

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Requirements for an Enforceable AOB in Florida

The Underlying Policy Must Have Issued Before January 1, 2023

The AOB contract must meet the requirements of Section 627.7152(2), Florida Statutes.

The AOB contract must be in writing and signed by both parties.

The AOB contract must explicitly allow the policyholder to rescind the AOB without penalty within certain periods

The AOB contract must explicitly require you to notify the insurance company about the AOB

When the AOB contract is signed, it must contain an itemized, per-unit cost estimate of the repair work.

The AOB contract must be limited to repairs or mitigation for dwellings and structures

The AOB contract must contain a very specific notice to the policyholder

In the AOB contract, you must indemnify the policyholder.

The AOB contract cannot contain a penalty or fee for rescission, processing checks, cancelling the agreement, or administrative costs.

The Law Requires You to Cooperate with Insurance Carriers

Limited Reimbursements for Emergency Repair AOBs

Collecting Against Policyholders Prohibited

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