fbpx
News
October 26, 2017

New ILR Research Paper Says Lawyer Advertising is “Scaring Patients into Not Taking Their Medications”

Assignment of benefit (AOB) contracts, in which home contracting companies offer home repairs in exchange for a consumer’s insurance benefits, are threatening to add costs to the Hurricane Irma recovery effort in Florida, reports the Wall Street Journal.

When a homeowner signs insurance benefits over to a contractor, he or she also gives the contractor the ability to sue the insurance company if there are any disputes. There were more than 28,000 such lawsuits filed in Florida in 2016. That’s up from only 405 in 2006.

AOB lawsuits are driving up the cost of insurance, to both companies and consumers. Heritage Insurance in Clearwater, for example, said it will pay $50 million more this than that it otherwise would, thanks to the spike in AOB claims. “Based on current AOB trends,” the article says, the average statewide annual homeowners insurance premium will increase by 29 percent by 2022.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings