Today, the American Consumer Institute (ACI) released a new study exposing the perverse incentives driving financial instability in Florida’s homeowner insurance market. The state’s generous fee-shifting policy has allowed attorneys to collect disproportionate attorney fees in assignment of benefit (AOB) lawsuits, encouraging more costly lawsuits. Today, Florida accounts for nearly 80% of the country’s insurance […]
Florida’s property insurance market is nearing collapse. This crisis is not caused by the billion-dollar storms that regularly hit the state but by unscrupulous attorneys who demand excessive legal fees to litigate claims in court. These legal actions have only homeowners in the Sunshine state facing double-digit premium rate increases on property insurance policies. Much […]
Insurance and the law. The two terms are enough to put most people to sleep with boredom. But a festering crisis in Florida’s insurance industry has spawned huge increases in unnecessary lawsuits and translated into rate hikes for millions of homeowners and drivers — and costs will continue to spiral until lawmakers plug a major […]
Florida state insurance law has led to increased insurance rates for consumers with little or no benefit to them. The current Assignment of Benefits (AOB) rules have resulted in an extremely unlevel playing field involving on one side contractors and lawyers, and on the other side consumers and insurance companies. This has resulted in consumers […]
For the last six years, efforts to end the biggest scam in Florida’s insurance industry — AOB abuse — have repeatedly been stymied by special interests and a handful of powerful legislators. This year, Senator Doug Broxson, Chair of the Senate Banking and Insurance Committee, and Bob Rommel, Chair of the House Civil Justice Subcommittee, […]
There is a law that encourages lawsuits and reforming this law would go a long way in curbing abuse that is pushing up insurance rates in Florida. To read more about this legalized fraud and why reforms are needed, visit Sunshine State News.
The Assignment of Benefits (AOB) fraud and abuse has affected hundreds of thousands of Floridians. In the first three quarters of 2018, there were 135,000 AOB cases. Homeowners are dragged into the swindle when they assign to a restoration contractor the right to have their insurance company pay for repairing damage to their home. The […]
A loophole in Florida’s insurance laws allows shady contractors and trial lawyers to milk the claims process for excessive bills, and consumers are paying at least $2.5 billion in higher premiums as a result — $120 for every Florida resident. Unless lawmakers intervene, it’ll only get worse. Here’s how the racket works: A homeowner calls […]
Even before hurricanes hit Florida over the last two years, residents were seeing their homeowner’s insurance rates increase sharply for more than a decade year after year. The culprit for these increases surrounds scams by crooked contractors assisted by a cabal of trial attorneys. You can read this op-ed by visiting the Daily Caller.
Assignment of benefits (AOB) abuse is rampant in Florida, enriching shady contractors and unscrupulous attorneys while driving up home insurance premiums for consumers across the state. An AOB allows an insurance policyholder to transfer the rights to insurance benefits to a third party, such as a contractor, to speed up the billing process. The contractor […]