The AOB reform bill is seen as quite a controversial issue and it has become a more recent topic of discussion from many insurance policyholders across the state of Florida. The assignment of benefits contracts affect the way that claim adjustments take place and they also take away a series of very important rights from policyholders. The AOB bill could lead to the chance that you will pay a higher premium as well as place extra stress on policyholders.
The AOB is also changing the way the business insurance works and it ensures that a small business owner will have to incur more risk. The bill into place on July 1, 2019 and since then a number of new provisions in insurance law have been added:
Free shifting switches:
The AOB system helps to protect consumers from contractors that would submit inflated invoices for excessive repairs. The AOB can receive payment directly from the insurer without inflating costs. Judgment on claims that inflate the cost above 50% of the disputed amount could lead to compensation if an insurance company or individual is overcharged.
Pre suit requirement changes:
The insurer and policyholder will have a chance to issue coverage decision within a statutory timeframe. Insurers need to respond with a settlement offer within 10 days or go to dispute resolution.
More options for consumers:
Post loss assignments and third parties need to come with notifications to policyholders. The restriction of Post loss assignments to third parties will have lower premiums due to this restriction.
This new amendment is bound to change the way that insurance affects businesses and individuals across the state of Florida. The AOB legislation may also require future examination in suits. If you need to open up a brand-new suit associated with your insurer, you may want to consider the idea of its potential impact on your business as well as the changes to your insurance policy.
This post was written by Kelly-Anne Jenkins of Jenkins Law P.L. Kelly-Anne is an insurance claims lawyer. She specializes in personal injury, car accidents, and bicyclist injury. The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your individual situation.