Fla. High Court May Crack Down On Benefit Assignments

By Jeff Sistrunk (March 27, 2019, 9:27 PM EDT) -- Florida's highest court has a chance to quash what insurers call an epidemic of overbilling by repair companies as it weighs whether a carrier can enforce a homeowners policy provision requiring all insureds and mortgage lenders to sign off before benefits can be assigned to third parties.

The assignment of benefits gives contractors the ability to seek payment directly from insurers for work performed on a property. In the case before the Florida Supreme Court, a repair company to which a homeowner assigned benefits under her policy with Ark Royal Insurance Co. is alleging the insurer wrongly declined to cover its...

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