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.
PIFF recognizes the usefulness of Assignment of Benefits but recommends legislative reforms be enacted to prevent AOB abuse from becoming a statewide consumer crisis on par with sinkhole claims abuse and PIP auto insurance fraud, which resulted in increased premiums for Floridians.
PIFF supports a change to Florida’s “one-way attorney fee” law so that businesses that sue insurance companies are required to pay their own lawyers – just like they do when they sue any other business. PIFF also supports legislation that will end referral fees between vendors; require detailed written estimates for work to be performed by a vendor; prohibit unlicensed adjusting by vendors; and put reasonable limits on how much work can be performed before the insurer is able to adjust the claim.
Visit FightFraud.Today and sign the petition to let members of the Florida Legislature know that you want to stop scams on Florida Homeowners. To learn more about how Floridians are being victimized, read their stories today.
Sun-Sentinel Posted: 04/19/2016, 01:57pm Citizens Property Insurance Corp. is sharing scant details about the scope of its new managed repair program — a cost-reduction initiative that industry experts figure will be imitated widely throughout Florida’s property insurance industry. The managed repair program is intended to allow state-run Citizens to control the claim from beginning to…
DetailsPrivate insurance companies are lining up to request state approval of two key policy revisions intended to reduce losses from a practice called “assignment of benefits.” In late March, the state Office of Insurance Regulation approved requests by Citizens Property Insurance Corp. to limit the cost of emergency repairs after water breaches or other emergencies…
DetailsORLANDO,Fla. — An Orange County man says a roofing company hijacked his insurance claim for hail damage that didn’t exist. Tony Annunziato blames the company for a questionable inspection and threats to sue his insurance company. He said he had a small roof leak, but an inspector from ELR Restoration claimed there was much more. “They said hail damage, there…
DetailsFollowing the 2016 Florida Legislative Session’s failure to pass essential assignment of benefit (AOB) reforms, the insurance industry and Citizens Property Insurance Corp. are working in tandem with the Florida Office of Insurance Regulation (OIR) to find workable administrative measures to help combat this kickback-driven lawsuit-for-profit scheme. The sad truth is AOB abuse is organized…
Details03.16.16_Citizens Board approves recommendations to stem water losses
Florida’s property insurance policyholders face paying higher rates due to the Legislature’s failure this legislative session to pass meaningful reforms to rein in fraud and abuse involving Assignment of Benefits (AOB). For the fourth straight year, legislators heard testimony about a rapidly growing scam in which shady home repair vendors pressure homeowners to sign away…
DetailsBY CARLOS LOPEZ-CANTERA Florida has taken some tough hits when it comes to major storms and bad weather in the past. Thankfully, it has been over 10 years since a major storm has hit the state. However, it is concerning that Florida homeowners are facing the highest home insurance rates in the country and still…
DetailsTALLAHASSEE — With time starting to run out on an insurance-industry priority, Lt. Gov. Carlos Lopez-Cantera is urging House and Senate leaders to take action on a controversial practice known as “assignment of benefits.” In a memo Thursday to House Speaker Steve Crisafulli and Senate President Andy Gardiner, Lopez-Cantera said assignment-of-benefits “abuse” has led to…
DetailsThe Senate Judiciary Committee on Tuesday postponed a vote on a measure that would regulate homeowners’ ability to sign over their right to collect insurance benefits to third parties. Logan McFaddin, state government relations manager for the Property Casualty Insurers Association of America (PCI), issued this statement: “Assignment of Benefits (AOB) abuse is a critical…
DetailsORLANDO,Fla. — Action 9 exposed some bogus offers to replace home roofs for free. In a hidden camera investigation, Action 9’s Todd Ulrich found out how the offers drive up the cost of insurance. The fliers left on front doors may claim a roof is damaged, and can be replaced for free. Several homeowners contacted…
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