AOB Legislation Comes To A Halt For Now
By Ana Cristina Rossi, Esq.
A bill sponsored by Chairman Doug Broxson, R-Gulf Breeze, and supported by the insurance industry to limit the ability to recover attorney fees in cases dealing with assignments of benefits, has been stalled. Four Democrats in the committee are opposed to the bill which made it impossible for Broxton to achieve a majority on the eight member committee.
Currently Florida law currently permits policyholders to have their attorney fees paid by the insurance company if they prevail in an action to recover insurance proceeds. Fla. Stat. 627.428 has been interpreted by the Courts to extend to third party contractors who bring suit against an insurance company via an assignment of benefits.
Assignments of benefits have been used routinely in the insurance industry for decades as a mechanism which allows an insured to have a contractor do the work up front without payment in exchange for the assignment of benefits which allows the contractor to seek payment directly from the insurance company.
In recent years, the insurance industry has attempted, unsuccessfully, to limit the use of assignments of benefits.
However, assignment of benefits are a tool which permits homeowners who do not have means to begin the repairs following a loss to get the work done by a contractor who is willing to forgo payment in full from the start and instead accepts an assignment of benefits which allows the contractor to not only seek direct payment from the insurance company but also conveys legal standing to sue the insurance company when the insurance company wrongfully denies a claim or refused to pay for the full value of the services.
If you have any questions about your rights as a homeowner, give us a call today.
Ana Cristina Rossi, Esq.
Learn more about Ana Cristina here!
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