March 27, 2017
Drew Wilson, Florida Politics
The Consumer Protection Coalition launched a radio and television ad campaign Monday to warn homeowners of how Assignment of Benefits abuse could cause insurance rates to skyrocket in Florida.
Assignment of Benefits, or AOB, is a system where homeowners can sign over their insurance policy to a contractor or lawyer in exchange for a quick repair. Often, AOB claims are costlier and many end up in court in order to get insurers to pay up.
The coalition includes several insurance providers, the Florida Chamber of Commerce and Associated Builders and Contractors, among other groups, and is pushing for the Florida Legislature to pass SB 1038, which includes provisions to disallow courts from awarding attorney fees in AOB lawsuits, and give homeowners time to back out of such agreements without penalty.
“Today, Florida homeowners are being targeted by dishonest home repair vendors, roofers and water mitigation companies who team up with shady trial lawyers to take advantage of them,” said Logan McFaddin, regional manager for the Property Casualty Insurers Association, a coalition member. “Because of this rampant AOB abuse in Florida, our coalition is warning Florida consumers about the negative impacts this unscrupulous activity can have on them.”
The animated video ad features a couple signing their insurance policy over to fix a leaky roof and says the practice will cause insurance rates to go up across the state. The ad then tells viewers to call their lawmaker and ask them to vote on SB 1038 and not to “be a victim of fraud and abuse.”