Florida Assignment Agreement

3. In the case of a claim under a transfer contract, an assignee is responsible for demonstrating that the insurer is not affected by the fact that the assignee is not concerned if he does not keep: a) registration of all services provided under the transfer contract. Contractors will no longer be able to blind their customers and insurers with exorbitant bills, until an insurance company ends up paying them. Contractors must now provide detailed estimates prior to the work in order to effectively obtain a transfer of insurance benefits. In addition, the assignee must immediately notify the insurer of the assignment. Insurers can now monitor costs and ensure that contractors do not make unnecessary repairs. Finally, insurers can avoid “benefit allocation” by banning AOBs in their policies. The bill establishes a new law with Act 627.7153 that “allows the insurer to provide a policy that limits all or part of an insured`s right to execute a transfer contract” if certain conditions are met. These conditions include the fact that the insurer must also provide unlimited coverage, that the restricted policy is available at a lower cost than the unrestricted policy, that policies that prohibit the allocation of a total amount are less than policies that partially prohibit attribution, and that restricted policies contain indications on their faces. (10) Notwithstanding any other legislation, legal fees and fees may only be recovered by an assignee in accordance with Section 57.105 and point 57.105 and this subsection, as part of a transfer contract for rights resulting from the loss resulting from residential or commercial real estate insurance. An AOB, also known as a transfer contract, is a legally binding contract in which benefits from a post-loss insurance policy are transferred by the taker (beneficiary of the transfer) to a third party (agent), often a home repair contractor. After a loss of insurance, the assignee works directly with the insurer for reimbursement repairs and receives claims from the insurer. This prevents the policyholder from being the intermediary of the insurance and the repair team.

The new Benefit Allocation Act affects all contracts concluded after July 1, 2019. Insurance contracts are not applicable if they do not comply with the new law. While this section is not a comprehensive review of all the changes, it does address the parts of the legislation that may have the greatest impact on businesses that use benefit allocation as part of their business model.