Florida’s New Assignment of Benefits Law
A new assignment of benefits (AOB) law that came into effect here in Florida in July alters the practice of policyholders assigning third-party claim benefits of an insurance policy and could very well change the insurance litigation landscape in Florida. The Bill’s Provisions Prior to now, the combination of this practice with Florida’s one-way attorney fee statute allowed policyholders to recover attorney’s fees from an insurer. However, the new law that went into effect establishes a number of requirements when it comes to assignment agreement, including: Prohibiting certain fees and provisions; Requiring insurers to report data on claims being paid by early 2022; Transfers multiple pre-suit duties to assignees; and Starting in 2023, enables insurers to prohibit assignment, revises the state of Florida’s one-way attorney fee statute, and requires service providers to provide insurers with at least 10 days’ notice before filing a legal complaint. Purpose & Effect According to the legislators behind it, the law was passed in response to a decade of “abusive litigation tactics in Florida’s market.” However, the bill has been labeled a “consumer protection measure,” passed in response to a policyholder benefit that has caused higher rates for Florida property owners. According to some sources, AOB lawsuits have exploded in recent years – especially in South Florida – leading to some insurers to increase rates for most-all of its homeowner’s policyholders to offset litigation expenses. That being said, insurers have also cited the fact that three hurricane seasons in a row have created certain unavoidable obstacles when it comes to elevated insurance rates. In addition, it is important to note that the insurance industry is celebrating this as a legislative victory, and while they expect a reduction in AOB litigation, they do not expect an overall reduction in insurance litigation. Other Measures Now in Effect In addition to AOB reform, other legislation – referred to as Florida’s omnibus insurance bill – will also have effects on the state insurance industry by imposing a right to contribution for defense costs for insureds who owe a duty to defend an insured. This is expected to have an important effect on construction defect claims and litigation, where an insured is covered under multiple insurance policies. While, historically, the first insurer would end up covering defense costs, now, these expenses are apportioned in accordance with the terms of the policies. The bill also makes some important changes to Florida’s bad faith statute, precluding parties from filing Civil Remedy Notices for 60 days after an appraisal is invoked in residential insurance disputes, essentially allowing insurers to pay appraisal awards without potential liability for extra contractual damages. Contact Our Florida Insurance Litigation Attorneys with Any Questions If you have any questions about the effect of the new law, or any insurance legal issue, contact our Sarasota insurance litigation attorneys at HD Law Partners today to find out how we can help. Resource: flarecord.com/stories/512713451-insurance-office-foresees-difficult-road-ahead-of-new-assignment-of-florida-benefits-law Posted in Sarasota Insurance Litigation Attorney | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us