ILR’S COO Harold Kim and Fla. Chamber of Commerce CEO Mark Wilson have a joint op-ed in the Tallahassee Democrat calling on state lawmakers to fix the growing assignment of benefits (AOB) crisis. They cite a recent study by the Insurance Information Institute that shows how bad the AOB crisis has become: “From about 1,300 AOB lawsuits statewide in 2000, AOB litigation soared to 135,000 cases in the first three quarters of 2018. Legal costs gobble up five percent of total losses in Florida, roughly double the national average. And the result? Florida consumers paid $1.6 billion more for insurance over the past decade than they would have if they lived in another state.”
The op-ed calls on lawmakers to pass a bill in the Florida Senate that would end one-way legal fees and require contractors to submit estimates to insurers before performing AOB work.