A new report from the Florida Justice Reform Institute (FJRI) found that assignment of benefits (AOB) practices are driving auto glass-related litigation.
Last year, the Florida legislature passed a bill to curtail runaway assignment of benefits lawsuits, in which a person signs over insurance benefits to a contractor in exchange for work, but the new law only applied to home improvement-related lawsuits. The practice was blamed for rising home insurance costs, since contractors would work directly with law firms to sue the insurance companies if they refused to pay inflated claims. Now, the practice has spread to auto glass or windshield issues.
FJRI President William Large said the report “shows how persistent AOB lawsuits based on the one-way attorney fee continue to drive up overall litigation and costs for policyholders.”