SB 122 – Relating to Attorney Fee Awards Under Insurance Policies and Contracts

On Monday, March 4, SB 122 by Senator Doug Broxson (R-Pensacola) was heard before the Senate Banking and Insurance Committee and was reported favorably with 5 yeas and 3 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this legislation.

Currently, assignment of benefit legal abuse is perpetrated by a handful of plaintiff’s 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 full and informed consent. This bill would limit the assignees of post-loss benefits that may recover attorney fees to a named insured, named beneficiary, or omnibus insured. Assignees of post-loss benefits such as contractors, motor vehicle repair shops, and medical providers would no longer be able to recover attorney fees.

SB 122 will now move to the Senate Judiciary Committee.

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.