The Florida Chief Financial Officer said unchecked assignment of benefits (AOB) abuse “is literally a category five hurricane that would financially cripple the state,” reports WTSP Tampa Bay.
Jimmy Patronis said the practice, in which home improvement contractors convince consumers to sign over their insurance benefits, then partner with plaintiffs’ lawyers to sue insurance companies for failing to pay inflated claims, is not “much a solution” for hurricane recovery. Instead, it is “used as an exploitation for folks to take advantage of a legal loophole.” Even before 2017’s storms, AOB lawsuits were being blamed for rising home insurance premiums.
The Florida House of Representatives passed AOB reform last week. The measure now sits before the state’s Senate.