The Wall Street Journal Editorial Board said Florida’s recently-passed law will curb “a longstanding legal abuse by plaintiff attorneys.”
Gov. Ron DeSantis is expected to sign the law, which is designed to stop the growing amount of assignment of benefits-related (AOB) insurance litigation that some have blamed for the state’s rising insurance costs. According to the Journal, the number of such lawsuits has increased from 79,000 to 135,000 over the last six years.
Citizens Property Insurance, the state’s government-backed insurance group, cited AOB lawsuits in its decision to raise insurance rates up to nine percent this year. A Citizens report from 2016 said litigated water damage claims cost more than double on average more than non-litigated claims.