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.


Continue Reading Assignment of the Policy: Is the Insurer’s Prior Written Consent Always Required for the Claim to be Accepted?

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?

The quote above came from Christine Barlow, a CPCU and assistant editor of the FC&S Bulletin many years ago.


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

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.


Continue Reading AOB and the Industry who Cried Wolf

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.


Continue Reading Can A Policyholder Assign Their Bad Faith Claim To A Third Party?–Part 2

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


Continue Reading Insurance Carriers’ Challenges To Assignments Of Benefits

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