prices for their work, as they will seek direct reimbursement for the full amount of their invoices from a homeowners' insurance carrier, and file a lawsuit directly against the insurer if the invoice is not paid in full,'' the brief said. "Under the guise of aiding insureds in emergency situations, vendors use AOBs (assignments of benefits) for their own profit, forcing insurance carriers to choose between paying
substantially in-
flated invoices or
defending them-
selves in costly
litigation and
facing potential
liability for ven-
dors' attorney's
fees and costs, in
addition to their
own."
But attorneys for
One Call Property
Services argued in
a brief that case
law in Florida has
long upheld the
validity of such assignments.
"Post-loss assignments are often given in payment for services performed after a loss occurs so that the insured does not have to pay in advance for covered services which are often performed on an emergency basis,'' the brief said. "The courts have never imposed a condition on the insured of adjusting the loss or of reaching agreement, final
judgment or appraisal award before an assignment of benefits can be enforced. Such a construction would allow an insurer to defeat a claim simply by refusing to cooperate and would delay an insured's ability to make emergency repairs."
The appeals court said Wednesday it wasn't in a position to evaluate the policy arguments.
"There is simply
insufficient evi-
dence in the
record in this
case --- or in any
of the related
cases --- to de-
cide whether
assignments of
benefits are
significantly in-
creasing the risk
to insurers,'' the
appeals-court
opinion said. "If
studies show
that these
assignments are inviting fraud and abuse, then the Legislature is in the best position to investigate and undertake comprehensive reform."
(Article Source: News Service of Florida)