Tallahassee, Fla. — Property Casualty Insurers Association of America (PCI) regional manager of state government relations Logan McFaddin today issued the following statement regarding House Bill 1421, by Representative James Grant, relating to Property Insurance Assignment Agreements, also referred to as Assignment of Benefits (AOB) legislation. HB 1421 was today heard in the House Commerce Subcommittee, its last committee of reference.
"Addressing AOB abuse is an urgent priority, and we appreciate Representative Grant for championing HB 1421 this session.
"As this legislation is now in a position to be taken up by the full House, we encourage a continued open dialogue among our state leaders to directly address escalating insurance costs associated with AOB abuse and lessening the threat it has on homeownership for Floridians.
"Citizens Property Insurance Corporation recently announced a net loss of $27 million for 2016 due to increased water loss claims attributed to AOB abuse and litigation costs. This is the first net loss for Citizens in over a decade. It is clear that skyrocketing litigation costs are a major problem, and we encourage the Florida Legislature to support a bill that puts an end to AOB abuse and protects homeowners.”