NAMIC Issues Statement on Florida Assignment of Benefits Legislation

INDIANAPOLIS, Feb. 6 -- The National Association of Mutual Insurance Companies issued the following statement by Southeast Regional Vice President Liz Reynolds:

"SB 1168 will have little, if any, positive effect on assignment of benefits abuse in Florida.

"While NAMIC members are not against the use of AOBs per se, we are against allowing anyone other than the policyholder to avail themselves of one-way attorney fees, which were intended only for use by policyholders, not third-party vendors.

"Who pays for this abuse? Floridians do. And, it's not just insurers who are calling for a change. Consumer groups, homeowners, and the media including the Wall Street Journal have come out in favor of AOB reform.

"It seems, however, that this collective cry for change - even from some members of the Legislature - has been unceremoniously dismissed."