Originally published by WJHG-Panama City and WCJB Gainesville |
TALLAHASSEE, Fla. (CAPITOL NEWS SERVICE) - A hundred and twenty-five supporters seeking to reform Assignment of Benefits contracts, which assign insurance benefits to third party contractors, marched to the state Capitol Wednesday morning.
Insurers have been fighting to close loopholes in the contracts, which they say have resulted in frivolous lawsuits.
Under current law, insurance companies often have to pay a contractor's legal fees when suing the insurer. They say the excessive litigation has driven up rates for consumers.
“Consumers across Florida have experienced firsthand the abuse of AOB practices in our state and as a result, the home and auto insurance rates that are skyrocketing and costing us all as Floridians. This strong show of solidarity sends a loud message to lawmakers that something must be done to stop assignment of benefits abuse and it must be done this session,” said Executive Director of the Florida Chamber of Commerce David Hart.
The group delivered 10,000 signed petitions demanding action from lawmakers. This session, Florida’s Chief Financial Officer Jimmy Patronis has set AOB reform as his top priority.