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Daily Legislative Brief from March 6, 2019

Insurance

Proposed Committee Bill CJS 19-01 – Relating to Insurance Assignment Agreements

On Wednesday, March 6, PCB CJS 19-01, sponsored and heard by the House Civil Justice Subcommittee, and was voted favorably with 13 yeas and 2 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this legislation.

The abuse of the one-way attorney fee statute in relation to “assignment of benefits” (AOB) has created a relatively new form of litigation over auto glass repairs and property damage. These legal abuses are perpetrated by a handful of lawyers and vendors who work together to strip benefits away from policyholders and use these to force higher settlements from insurers, and even go so far as to sue in the name of the policyholder, often without the policyholder’s consent. This bill helps prevent future abuse of AOBs.

AIF supports reforms to the assignment of benefits process to protect consumers against these abuses.