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News
April 12, 2019

Florida House of Representatives Passes AOB Reform

On a 96-20 vote, the Florida House of Representatives passed a bill to curb the assignment of benefits abuse that has been blamed for the state’s rising home insurance rates, Insurance Journal reports.

The bill would address Florida’s unique one-way attorney fee structure, which leaves the insurance company to foot the bill for any litigation over assignment of benefits. The state’s insurance commissioner has previously said this structure “incentivizes abuse and excessive litigation.” Among other provisions, this bill would address this issue by requiring notice of a claim within 10 business days of it being filed.

In a blog post, U.S. Chamber Institute for Legal Reform Chief Operating Officer Harold Kim said the bill “could inject sanity back into Florida’s insurance market and ultimately bring a more competitive market to the Sunshine State.”

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