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In a significant turn of events in the insurance industry’s fight against Florida assignment of benefits (AOB) abuse, Florida’s Fourth District Court of Appeal (DCA) has ruled that an insurer’s anti-assignment provision was not prohibited.

But the battle isn’t over yet as it is likely this decision will be brought to the Florida Supreme Court.

The Fourth DCA ruling came on Sept. 5, 2018 in the case of Restoration of Port St. Lucie, a/a/o, John and Liza Squitieri v. Ark Royal Insurance Co., in which the court disagreed with a decision by the Fifth DCA in Dec. 2017 prohibiting any such conditions.

The Fourth DCA found that a homeowner’s insurance policy may contain a restriction requiring the consent of all of the insured and the mortgagees before a valid assignment of benefits. The ruling could allow insurers to seek to use these restrictions to stem the rise of fake or exaggerated claims and allow parties with valid, vested interests in a property to have a say in the assignment. The ruling could be a turning point in stemming abuse of AOBs that is leading to increased homeowner insurance rates statewide.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/09/20/501785.htm

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