Dick Tutwiler posted an interesting perspective regarding assignment of property insurance claims in Florida Property Insurance Legislative Wrap 2015 – We made it through another year unscathed or did we? Here is his perspective:
In California, regarding a transfer of an interest in a fire policy, the policy must have an assignment provision which states, to the effect: “Assignment of this policy shall not be valid except with the written consent of this company.” But is this rule absolute? California courts have said no.
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 both the dwelling and personal property? Are dead bodies’ pollutants? And what about self inflicted situations; are they excluded as intentional acts?
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 after their home has been damaged. The following scenario illustrates how AOBs are supposed to work: A pipe breaks in your home and floods your living room. You call someone to extract the water the dry your home. With an AOB, that company will provide services to you without upfront payment because they have a legal means to recover their fee from the insurance company directly.
Whether a policyholder can assign their bad faith claim to someone else is an interesting question—that is, if you find insurance issues and assignments interesting like I do; if not, then reading about assignments in insurance can be a cure for insomnia. Anyway, in my last post on this topic, we discussed a Pennsylvania case allowing a policyholder to assign their bad faith claim to another person. This post will look at Florida law on the topic.
Here is an interesting question; can a policyholder assign their bad faith claim to someone else? I will discuss several states’ laws on this issue in upcoming posts. Recently the Pennsylvania Supreme Court said yes they can.1
Assignment of insurance benefits is a pretty boring aspect of insurance law. But, the topic came in handy for me this evening.
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 assignments in recent years. A recent appeal by a water dry-out company demonstrates this.1
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.
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 Brae Burn issued the certificate, Concierge took possession and control of the newly-constructed nursing home.
Continue Reading Anti-Assignment Clauses in Texas