SUMMARY OF WEBINAR
After several years of unsuccessful attempts, on April 24, 2019, the Florida Legislature finally passed a bill that would comprehensively reform post-loss assignment of benefits (AOB) under residential and commercial property insurance policies. Colodny Fass shareholders, Katie Webb, and Wes Strickland discussed how this historic AOB legislation was able to make it successfully through both chambers of the Florida Legislature.
The presentation includes a section-by-section summary and analysis of the final AOB legislation (CS/CS/HB 7065), which would, among other things:
- place substantial new requirements on AOB agreements;
- require assignees of post-loss benefits to serve insurers with detailed notices at least 10 business days prior to filing lawsuits;
- require insurers to respond within 10 business days after receiving pre-suit notices from assignees;
- replace one-way attorneys’ fees for assignees with a prevailing party formula;
- require insurers to begin reporting AOB claims data as of January 30, 2022; and
- allow insurers to offer optional policy forms that eliminate or restrict the use of AOBs.
The legislation is expected to be signed into law by Governor Ron DeSantis. If so, it will be effective on July 1, 2019, and apply to AOB agreements executed on or after that date.