American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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  • FOR RELEASE ON RECEIPT
  • February 17, 2016
  • PCI Issues Statement on Assignment of Benefits Legislation being Temporarily Postponed by the Senate Judiciary Committee
  • TALLAHASSEE, Fla. - Logan McFaddin, state government relations manager for the Property Casualty Insurers Association of America (PCI), issued the following statement in response to the Senate Judiciary Committee temporarily postponing Senate Bill 596.

    “Assignment of Benefits (AOB) abuse is a critical issue facing consumers in Florida. In recent years, unscrupulous lawyers and shady vendors have used AOB to take control of a homeowners’ policy, inflate claims costs, file expensive lawsuits against insurance companies and drag homeowners through unnecessary litigation. Last week, the Florida Office of Insurance Regulation (OIR) released a data call that showed the use of AOB has increased dramatically. The major influx of AOB claims and lawsuits is hurting Florida families as this could drive up insurance costs.

    “PCI and our members support AOB reforms in order to protect Floridians from dishonest companies and individuals looking to take advantage of people in a desperate situation. PCI and our members urge homeowners to always contact their insurance agent or claims adjuster first before signing any documentation represented by a third-party contractor following a catastrophic event.

    “PCI supports Senate Bill 596, which puts the necessary protections in place to prevent AOB abuse, and we encourage the Senate Judiciary Committee and Chairman Diaz de la Portilla to take up this important bill at the next committee meeting and ensure AOB reforms that protect Floridians are put in place.”

  • PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $195 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 28 percent of the homeowners market, 33 percent of the commercial property and liability market and 35 percent of the private workers compensation market.
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