Security First Insurance Company recently proposed adding a provision to their insurance policies which would limit an insured’s right to assign their post-loss insurance benefits. Essentially, Security First wanted to make it a requirement that an insured seek the company’s written approval before signing an assignment of insurance benefits.
The proposed endorsement stated: “Assignment of this policy or any benefit or post-loss right will not be valid unless we give our written consent.” However, the Florida Office of Insurance Regulation (FLOIR) rejected Security First’s request to add this provision to their policies. FLOIR explained that Security First could not add this policy provision because it is against Florida law for an insurance company to prohibit the assignment of post-loss insurance benefits.
In support its conclusion, FLOIR cited to Florida Statutes as well as Florida case law, including a case from the Florida Supreme Court.
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