|Date:||May 28, 2017|
The recent editorial, "Property claims must be sorted out," correctly pointed out that Florida homeowners are continuing to pay the price for the state's inaction on Assignment of Benefits (AOB) abuse, a get-rich-quick scheme where some lawyers file inflated insurance claims without the consumer understanding the ramifications.
As we approach another hurricane season, it's unfortunate that reform legislation designed to curtail AOB abuse stalled in the Florida Legislature this year. AOB reform is critical for helping reduce Floridians' insurance costs. And it's not just South Florida or coastal residents. The Florida Office of Insurance Regulation estimates that all Floridians' homeowners costs could rise by 10 percent a year due to abuse in the system.
However, it is important to note that artificial rate rollbacks are not the answer. These politically motivated mandates interfere with the private market's resiliency, making stability even more difficult to achieve for insurers and their consumers.
Logan McFaddin, Property Casualty Insurers Association of America regional manager