Tag Archives: Assignment Clause

Appellate Court Disagrees with Sister Court on Assignment of Benefits

In December of last year, my colleague Ashley Harris discussed Security First Insurance Co. v. Florida Office of Insurance Regulation,1 where the Florida Fifth District Court of Appeal (Fifth DCA) upheld the Office of Insurance Regulation (“OIR”) prohibition of proposed language in an insurance policy that would require “all insureds, all additional insureds and all … Continue Reading

Can Post-Loss Benefits be Assigned to a Mitigation/Restoration Vendor if the Policy Contains an Anti-Assignment Provision? Can the Vendor then Sue the Insurance Company?

The Arizona Court of Appeals in a recent opinion said, Yes to both. In Farmers Insurance Exchange v. Udall,1 four homeowners insured by Farmers Insurance Exchange (“Farmers”) sustained separate losses, which required water damage mitigation and restoration services. The homeowners hired a vendor to perform the mitigation and restoration services. In each case, the insureds … Continue Reading

Attempt to Bar Post-Loss Assignment of Benefits Denied

Assignment of benefits is one of the hottest topics in Florida first party property insurance and it’s no secret that insurance carriers are not in favor of AOBs. Some insurance carriers, like Security First Insurance Company, tried to take matters into their own hands and add language into their homeowners, condominium unit owners and “dwelling … Continue Reading

Assignment of Benefits, Part 1: New Jersey

I am often asked whether an Assignment of Benefits (“AOB”) is valid in [insert state here] under a property insurance policy. The purpose of this blog series will be to provide readers with an answer to the question on a state-by-state basis. As New Jersey is my home-state, it’s up first.… Continue Reading

Are All Post-Loss Assignments Of Benefits Created Equal? Accrued vs. Unaccrued Rights Being Assigned

Well many folks in the insurance industry have been waiting some time for this moment… the decision of the validity of post-loss assignments of benefits in Florida. Several opinions were recently issued on the same day (May 20, 2015) by Florida’s Fourth District Court of Appeals related to assignments of benefits in property insurance claims.1 … Continue Reading

Property Damage Caused by a Dead Body: Court Says Clean-up Company can be Paid and Assignment of Benefits Valid

Borrowing a quote from Chip Merlin’s post, Dead Bodies–Are They a Covered Peril?: Some of the most unnerving claims an adjuster experiences are those concerning dead bodies, and we have had many recent questions regarding the deceased and what to do with them. Particularly, is there coverage under the homeowner’s policy for clean up for … Continue Reading

AOB and the Industry who Cried Wolf

If you work in or around property insurance in Florida, you have undoubtedly been exposed to the recent debate regarding Assignment of Benefits (“AOB”). An AOB is a legal form that allows an insurance provider to bill your insurance carrier directly. AOBs allow home-repair contractors to bill insurance carriers requiring nothing out-of-pocket from the homeowners … Continue Reading

Insurance Carriers’ Challenges To Assignments Of Benefits

Oftentimes policyholders that have suffered a loss turn to representatives that will be able to help them in emergency situations. These companies may take assignments of the insurance claim proceeds as payment for their services. Examples are water dry-out companies, emergency services contractors, and fire cleanup companies. Insurance carriers have been challenging these types of … Continue Reading

Insurance Policy Consent to Assignment Clauses

Many policyholders forget that their insurance policy is a contract and is subject, with exceptions, to the usual laws of contract. An issue that frequently arises is whether the named insured is able to assign insurance proceeds under the policy to another. The answer to that question is dependent on the type of coverage sought.… Continue Reading

Anti-Assignment Clauses in Texas

In 1999, Brae Burn Construction Company (“Brae Burn”) was hired to build a nursing home for Concierge Care Nursing Centers (“Concierge”). Brae Burn subcontracted with four vendors, each individually and independently insured by their respective insurance carriers. In August 2000, Brae Burn issued a Certificate of Substantial Completion, indicating that the building was complete. After … Continue Reading

Assignment of Insurance Claims in Texas

A colleague of mine recently dealt with an interesting issue regarding the assignment of an insurance claim. Specifically, she looked into how Texas law applies to the assignment of an insurance claim when the insurance policy contains a non-assignment clause. Most states follow the rule that if the policy prohibits assignment, the insured cannot assign … Continue Reading