Florida Governor Ron DeSantis has signaled his support of a property insurance reform bill passed by the Florida Senate Wednesday, saying in a statement Wednesday he will sign the legislation that the insurance industry and consumer advocates say will stem abuse of a policyholder benefit known as assignment of benefits (AOB).

Homeowners covered by the state’s insurer of last resort, Citizens Property Insurance Corp., should also expect to see rate decreases in the not too distant future as a result of the legislation.

By a vote of 25-14, the Florida Senate passed SB 122 that addresses the abuse of post-loss AOBs for residential or commercial property insurance claims and limits one-way attorney’s fees related to AOB agreements. The bill was a committee substitute for House Bill 7065, sponsored by Representative Bob Rommel, which passed the House on April 11. The Senate bill was sponsored by Senator Doug Broxson, chair of the Banking & Insurance Committee.

DeSantis said he is ready to sign the bill and bring relief to Florida consumers, who are experiencing rate increases statewide and difficulty obtaining coverage in some areas. The governor’s office said AOB lawsuits have exploded over the last 10 years – in 2008, there were approximately 90 property AOB lawsuits filed statewide but by 2018, the number of lawsuits had increased by more than 19,000%

Read the full article on InsuranceJournal.com.

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