Palm Beach Post I recently attended a forum hosted by Florida’s Insurance Consumer Advocate Sha’Ron James in Boca Raton to discuss the explosion in insurance claims related to water damage. During the event, multiple speakers talked about problems associated with Assignment of Benefits (AOB), and how it is harming the insurance market and increasing rates…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.