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New Florida AOB Law Takes Effect

The law makes several changes to the state's assignment-of-benefits statute.
July 1, 2019

A Florida law that took effect Monday makes several changes to the state's assignment-of-benefits statute. House Bill 7065 was passed by the House, 96-20, and Senate, 25-14, during this year’s legislative session, and signed into law by Gov. Ron DeSantis on May 23.

“I thank the Florida Legislature for passing meaningful AOB reform, which has become a racket in recent years,” DeSantis said in a statement. “This legislation will protect Florida consumers from predatory insurance practices.”

The bill’s adoption ended seven years of failed attempts to reform the state’s Assignment of Benefits [AOB] statute, which insurers and state officials say spurred an explosion of lawsuits that contributed significantly to rate hikes. AOB agreements allow property insurance policy holders to sign away, or assign, benefits in insurance policies. The law allows policyholders to trade those benefits in exchange for “upfront work” in an emergency.

Under the new law, insurance companies can legally sell AOB-free policies. Carriers can offer three tiers of policies – those allowing policyholders to assign their benefits; those restricting assignments; and those blocking an assignment whatsoever. -more-

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