TALLAHASSEE — 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 fraud and driven up homeowners’ insurance costs.
“The system presently puts too much emphasis on contractors and lawyers at the expense of consumers,” Lopez-Cantera, a candidate for U.S. Senate this year, wrote.
Assignment of benefits often arises when homeowners need repairs for problems covered by their home insurance polities. They sign over benefits to contractors, who pursue payments from insurance companies.