APCIA Statement on AOB Legislation Being Rolled to Third Reading in Florida House

TALLAHASSEE, Florida, April 10 -- The American Property Casualty Insurance Association issued the following statement by Logan McFaddin, regional manager of state government affairs regarding House Bill 7065, by the Florida House Civil Justice Subcommittee, relating to Insurance Assignment Agreements, being rolled to Third Reading in the Full House. HB 7065 was stripped of addressing assignment of benefits (AOB) abuse as it relates to auto glass lawsuits:

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- Legislation Stripped of Addressing Auto Glass AOB Abuse

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"We applaud members of the Florida House for advancing House Bill 7065 to Third Reading on the House floor today. However, it is unfortunate that addressing assignment of benefits lawsuits as it pertains to auto glass has been stripped from the bill.

"Just last week, a new Florida Justice Reform Institute Report demonstrates how AOB abuse continues to result in significant costs for consumers, all for the benefit of a few attorneys and repair vendors. Auto glass repair schemes are becoming another example of AOB abuse in Florida.

"According to the Florida Department of Financial Services, in 2006, approximately 400 auto glass AOB lawsuits were filed against auto insurers. In 2016, nearly 20,000 lawsuits were filed. These numbers are concerning.

"Florida drivers deserve to have insurance benefits they can rely on without having to worry about some auto glass repair shops looking to take advantage of them in vulnerable situations. APCIA will continue to work with legislators as auto glass abuse is a growing problem that must be stopped."

APCIA promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. APCIA is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. APCIA members write $220 billion in annual premium, 37 percent of the nation's property casualty insurance. Member companies write 44 percent of the U.S. automobile insurance market, 30 percent of the homeowners market, 35 percent of the commercial property and liability market and 37 percent of the private workers compensation market.