American Property Casualty Insurance Association

Assignment of Benefits


Florida’s legislature passed Senate Bill 122 in April 2019, which enacts a number of reforms intended to reduce abuse of “assignment of benefits” (AOB) claims.

Over the years, AOB abuse has been growing—affecting Florida policyholders by increasing the cost of premiums and making it harder for some to obtain insurance.

AOBs are documents, signed by a policyholder, that allow a third party—such as a contractor, like a roofer or plumber—to submit payment claims directly to an insurer. Unfortunately, over the years plaintiff attorneys and service contractors have increasingly used AOBs to generate lawsuits and increase fees. This drives up costs for everyone.

With the passage of SB122, Florida has taken a big step to curb AOB abuse and restore the original intent of AOB claims. The bill became law on July 1, 2019.