Assignment of Benefits

Recent Florida legislation makes the assignment of benefits for a property insurance policy illegal in Florida. Recent cases demonstrate that such assignment of benefit contracts will be critically examined by courts when insurance companies raise issues about their validity.Continue Reading Assignment of Benefits in Florida Will Soon Be Dead and Are Now Critically Examined

An article in the Insurance Journal, New Hampshire Body Shop Owner ‘Winging’ Own Case Beats State Farm in High Court, about an assignment of benefits (AOB) case caught my attention. State Farm’s attorneys lost to a non-lawyer in New Hampshire’s Supreme Court.1 The dollar dispute was overwhelmed by the practical implications of the case. The article noted in part:
Continue Reading Assignment of Benefits Post Loss—New Hampshire Looks To Policy Language

Restoration Association of Florida (RAF) and a restoration contractor did not let Florida Governor DeSantis’ ink dry before filing a lawsuit seeking to quash the new property insurance legislation. RAF recently filed a lawsuit against Florida’s Insurance Commissioner, as noted in last month’s post, Restoration Association Accuses Florida Insurance Commissioner of Unconstitutional Conduct.
Continue Reading Restoration Contractors Claim New Florida Property Insurance Laws Unconstitutional

The world of managed repair is being argued about and fought over in Florida. While most property insurance policies have traditionally allowed insurance companies to elect the option to repair or replace damaged property, few insurance companies elected the option when it comes to real property damage. This is no longer the case in Florida.
Continue Reading Preferred Contractor vs. AOB Contractor—Who Wins When the Policy Allows Insurer Repair Option and Selection of Contractor?

Insurance restoration contractors play an important role in a policyholder’s, and often community’s, recovery following a disaster. Many restoration contractors have contracts calling for them to be paid what the insurance company agrees to pay on a claim. Those same contractors have Assignment of Benefit contracts (AOB’s) to ensure payment of claims monies for the repair work they do. This is a normal method of operation throughout many states after disasters happen. Policyholders want to immediately start with their repairs but have not finalized the amounts owed to do the repair work with their Insurance carriers.
Continue Reading Enforcement Action Shuts Down AOB’s and Contractor’s Negotiations For Repair Costs