Assignment of benefits contracts for property damage claims may be going the way of the dinosaur in Florida. A recent Florida Insurance Bulletin notes that the new statute allows insurance companies to issue policies preventing an assignment of benefits if insurers offer a premium discount.… Continue Reading
Assignment of Benefits (AOB) is certainly a hot button issue in the insurance industry. AOB occurs when an insured assigns its rights to insurance proceeds to a third-party that is not technically an insured under the insurance policy.… Continue Reading
Just last week, the Iowa Court of Appeals in 33 Carpenters Construction, Inc. v. The Cincinnati Insurance Company,1 held that 33 Carpenters, a contractor who was the assignee of a hail and wind storm claim, acted as an unlicensed public adjuster.… Continue Reading
Merlin Law Group knowledge manager Ruck DeMinico sent me recent North Dakota legislation pertaining to Assignment of Benefit contacts. This topic was also hotly debated two weeks ago at the Windstorm Insurance Conference in Orlando. Insurance restoration contractors, their lobbyists and attorneys are desperately trying to prevent any changes that would make such contracts more … Continue Reading
The National Association of Public Insurance Adjusters held its mid-year meeting last week and the topic of assignment of benefits, commonly referred to as AOB’s, was on the agenda. Lisa Miller, an insurance lobbyist and regulator I have come across for over twenty-five years was the speaker on the topic.… Continue Reading
The widespread devastation of Hurricane Florence brought to a recent discussion the question of whether assignment of benefits contracts for property insurance proceeds are enforceable in North Carolina. This is a great question. In a general setting, vendors, services providers and contractors begin their work with a down payment and receive additional payments as work … Continue Reading
Two weeks ago, Merlin Law Group attorneys Michael Duffy and Larry Bache received a unanimous jury verdict in a case of first impression in Nebraska on assignment of claims.… Continue Reading
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
Claim assignments post loss are generally valid despite policy language preventing the same. This is true even if the amount of the claim owed is disputed.1… Continue Reading
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
A handful of bills regarding proposed statutes concerning assignment of property insurance benefits were withdrawn from both houses of the Florida legislature this month. Each of the proposed laws were directed toward assignments entered into by property owners in exchange for the agreement of the assignee — typically a contractor — to complete the associated … Continue Reading
In this installation of my series on Assignment of Benefits (AOBs), we’ll be looking at AOBs in Kansas and how the courts have dealt with them.… Continue Reading
Following up on another reader’s request, in this blog post we’ll be looking at Assignment of Benefits (AOB) and how courts handle them in Iowa.… Continue Reading
I hope each and every one of you are in the midst of a wonderful holiday season! I am writing this blog from a food court in Toronto, Canada. While I am on a vacation to see family, the weather is making me rethink my life choices. It is currently 19 degrees. This Floridian is … Continue Reading
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
In a prior blog, I discussed the California Supreme Court’s decision in Fluor Corporation v. Superior Court,1 regarding the post-loss assignment of insurance benefits. In Fluor, the California Supreme Court held that section 520 of California’s Insurance Code prohibits insurance companies from refusing to honor post-loss assignments of benefits, regardless of whether the assigned benefits … Continue Reading
I’m currently on a flight to Cincinnati and felt that it would be a perfect time for a new post in my series on Assignment of Benefits (“AOB”) tackling this issue in Ohio.… Continue Reading
As I and some of my colleagues have written about lately, in most states, after a covered loss has occurred, policyholders generally can assign the insurance benefits they’re entitled to receive in connection with that loss, despite language to the contrary in their policy. Following a devastating loss, such as the damage caused by the … Continue Reading
With its 2008 enactment of Colorado Revised Statute § 10-3-1115 and § 10-3-1116, Colorado has created one of the country’s strongest statutory bad faith causes of action. What makes Colorado’s bad faith statute even more exceptional is that it allows a repair vendor, such as a roofer or restoration contractor, to assert a claim for … Continue Reading
In prior blog posts on assignment of contingent benefits, I discussed the distinction between assignments of contingent benefits and assignments of noncontingent benefits under a property insurance policy. For the purpose of this post, a contingent benefit is a benefit or payment that is either not yet fixed in amount or regarding which the carrier … Continue Reading
Florida Senator Gary Farmer filed an Assignment of Benefits reform bill in the Florida Senate. As discussed in Unauthorized Practice of Public Adjusting Case Petitioned to Texas Supreme Court, and Two different approaches to the Assignment of Benefits Issue, I expect that some form of assignment of benefit reform will be passed in Florida this … Continue Reading
Unauthorized practice of public adjusting issues are going to the Texas Supreme Court. Lon Smith Roofing is not giving up and filed a petition which should be read by those with interests in the property insurance claims industry. I have previously discussed this case in:… Continue Reading
In Assignment of Unaccrued or Contingent Benefits, I discussed the distinction between assignments of Contingent Benefits and assignments of Noncontingent Benefits under a property insurance policy. For purposes of this blog, a Contingent Benefit is a benefit or payment that is either not yet fixed in amount or the carrier is not yet obligated to … Continue Reading
It is widely accepted that insurance policies are generally not assignable by the policyholder unless the insurance company consents to the assignment. In most states, it is also well-established that after a covered loss has occurred, the policyholder ordinarily may assign the claim to another person or entity, even if the policy contains a clause … Continue Reading
