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February 5, 2019

Insurance Official Says AOB Increase in Florida is “Stupefying”

The chief actuary of the Insurance Information Institute said the increase in Florida assignment of benefits (AOB) lawsuit filings is “stupefying,” Florida Politics reports.

James Lynch told the state’s Senate Banking & Insurance Committee yesterday that the more than 100-fold increase in AOB litigation since 2000 is something “that no other state has experienced…either in insurance or anything else.” He pointed specifically to the state’s unique one-way attorney fee system as a key driver of the increase. The system requires insurers to cover the legal costs of their policyholders in litigation over claims.

The chairman of the committee, Sen. Doug Broxson, has introduced a bill that would restrict one-way fees only to named insureds and beneficiaries, not the contractors who benefit from AOB arrangements.

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