The Florida Legislature today passed CS/CS/HB 7065: Insurance Assignment Agreements, pertaining to Assignment of Benefits (AOB), sending it to Governor DeSantis’ desk.
“The exponential growth in AOB abuse has contributed to mounting insurance costs for Floridians for far too long,” said Governor DeSantis. “In recent years, there have been calls for reform and today, the Legislature took action. I thank them for their efforts in getting this done and I look forward to signing this meaningful legislation into law.”
An AOB is an agreement that, once signed, transfers the insurance claims rights or benefits of a consumer’s insurance policy to a third party. It gives the third party authority to file a claim, make repair decisions and collect insurance payments without the consumer’s involvement.
Over the last several years, AOB abuse and fraud has grown drastically across Florida, causing insurance costs to rise and opening the door to frivolous litigation. In 2008, there were approximately 90 property AOB lawsuits filed statewide. By 2018, the number of lawsuits had increased by more than 19,000 percent. With this reform, Florida is taking a strong step to fight insurance fraud and its impact on rising insurance costs for Floridians.