DAYTONA BEACH – It’s not uncommon for plumbers called in to fix a broken pipe to ask a homeowner to sign an assignment of benefits form before making repairs. Faced with the immediate need, many agree to sign, which transfers the right to file an insurance claim to the plumber. In most cases, there is nothing…Details
Assignment of Benefits (AOB) abuse is a fast-growing fraud scheme that is hurting Florida’s insurance consumers. While AOB is a long-established legal tool intended to allow vendors to receive prompt payment from insurers after doing emergency repair work in a home – without having to directly involve the homeowner – this process is being abused by a cottage industry of unscrupulous trial lawyers, water remediation firms and roofers. These bad actors are persuading homeowners to sign over the benefits of their insurance policies as a means for fraudulently inflating claims, filing thousands of lawsuits against insurers, and driving up attorney’s fees.