Florida Contractors Slam AOB Measures Favoring Insurance Companies

| March 28, 2019

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Recently, the Restoration Association of Florida (RAF) responded to two bills moving through the Florida Legislature that could affect the assignment of benefits (AOB) process. RAF stands in opposition to the bills (SB 122 and HB 7065), saying they fail to address the needs of both homeowners and contractors. RAF hosted a panel of attorneys, contractors and homeowners at the Crowne Plaza Tampa Westshore to highlight the issues they see with the bills aimed at reforming the AOB process. The groups main complaint is that the insurance companies unfairly deny or underpay claims and the proposed reforms would make this issue even worse. The two bills both contain changes to the AOB process that would require property owners to deal with their insurance company directly to determine who can make the repairs as well as the total budget for the repair. One bill even allows insurers to sell policies that eliminate the AOB process altogether. The current AOB process allows homeowners to sign an AOB form which basically signs over their insurance benefits to the contractor, allowing them to make decisions on the repair process and even bill the insurance company directly. Insurers claim that less than honest contractors submit bills for work not done or overcharge for repairs, and then sue when the claim is denied or adjusted.

Spotlight

Promutuel Assurance

Promutuel Assurance is one of the largest property and casualty insurers in Quebec. Recognized for its financial strength, high quality products and excellent customer service, it has 1935 employees serving more than 630,000 policyholders. Promutuel Assurance's mission is to promote and offer insurance products that meet the expectations of its insured members. In this respect, it provides a personalized service of quality and encourages the mutual values ​​that guide its actions for 166 years.

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