Florida homeowners are paying more in insurance premiums because of a scheme that abuses the “assignment of benefits” (AOB) law. In recent years, dishonest trial lawyers and contractors — generally water remediation firms, roofing contractors and plumbers — have come up with a new scheme involving AOBs and bilking the system. HB 669 and SB…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.