Menu

4 Things Attorneys Need to Know About Fla.’s ‘AOB’ Reform Bill

Government Law & Consulting   |   Property & Casualty Insurance   |   April 25, 2019
Carlton Fields’ Senior Director for Government Consulting, Beth Vecchioli, was quoted in the Law360 article, “4 Things Attys Need to Know About Fla.’s ‘AOB’ Reform Bill,” discussing recent legislation in Florida aimed at abusive litigation by repair contractors seeking payment under property policies.
 
In recent years, Sunshine State homeowners have assigned their insurance benefits to contractors repairing their hurricane damaged homes, an act that insurers believe leads to an exploitation of the Assignment of Benefits system through excessive repairs or inflated charges.
 
The new bill, which will go into effect on July 1, most notably switches Florida’s “one-way” attorney fee rule with a formula that determines an award for either the assignee or the insurer, or neither party.
 
“The current one-way attorney fee provision was always originally designed to help consumers who don't have the same financial resources as their insurers to go through litigation,” Vecchioli said. “Once these assignments started popping up, though, the insurer was no longer in litigation against a consumer, but against another sophisticated commercial company. It didn't seem fair or right that the insurance industry still had to deal with this one-way attorney fee provision in those situations."
 
Read the article. (Subscription may be required).

Subscribe to Publications

Media Inquiries

Kate Barth

Kate Barth

Senior Public Relations Manager

813.229.4154

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.