Absent Legislative Reform, Florida’s Unique AOB Crisis is Here to Stay
Insurance Commissioner David Altmaier issued the following statement following today’s passage of HB 7065 reforming one-way attorney’s fees related to assignment of benefits (AOB) agreements:
Commissioner Altmaier said:
“Florida is unique. We have one of the longest coastlines, an ever-increasing population and one of the largest, most complex insurance markets in the world.
“Florida also has a unique attorney fee structure as it relates to AOB agreements as the current one-way attorney fee structure incentivizes abusive litigation in our insurance market. As a result, Florida remains unique as we are one of the only states currently battling a cottage industry that profits off the systemic abuse of AOBs. However, the impacts of this abuse are not so unique as every policyholder across our state is facing an insurance product affordability and availability crisis.
“I applaud Speaker Oliva, Chair Rommel and many other legislative leaders for their efforts to pass meaningful AOB reform. Absent their continued diligence, Florida’s unique AOB crisis is here to stay.”
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit floir.com or follow us on Twitter @FLOIR_comm.