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News
January 2, 2018

In the News Today – January 2, 2018

An op-ed in the Sun Sentinel called on the Florida legislature to fix the “assignment of benefits insurance scam.”

Two writers for the American Consumer Institute said the practice is designed “to enrich a handful of dishonest attorneys and contractors on the backs of insurance consumers.” The “scam” occurs when home improvement contractors ask consumers to sign over their insurance benefits in exchange for work. Working with attorneys, the contractors file inflated claims to the insurance company, and ask their attorneys to sue if the company doesn’t pay.

These types of lawsuits have skyrocketed in Florida, increasing from 405 in 2016 to 28,000 in 2016. Insurance companies claim these lawsuits are leading to higher insurance premiums. A Miami-Dade County insurance company said homeowners insurance premiums may increase by more than $6,000 by 2022 if assignment of benefits abuse isn’t stopped.

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