The important thing is fla. Stat. 627.7152 (2) (d) states that “a transfer agreement that does not comply with this subsection is invalid and unenforceable.” More and more owners have unknowingly signed contracts or forms involving the transfer of benefit agreements. These forms are sometimes provided by contractors, often for repairing water damage, and should be read carefully. By signing documents with a benefit transfer contract, you can authorize the contractor to recover your compensation funds directly from your insurance company. This has led owners to lose control of the claim procedure and this could mean that the amounts must be paid beyond what is covered by their policy. The contractor could put a pawn on the house, and subcontractors in Florida may be forced by enforced execution. The new Benefit Allocation Act affects all contracts concluded after July 1, 2019. Insurance contracts are not applicable if they do not comply with the new law. While this section is not a comprehensive review of all the changes, it does address the parts of the legislation that may have the greatest impact on businesses that use benefit allocation as part of their business model. It will probably not be enough to ensure that your transfer agreements are updated to comply with the law. Contractors must also ensure that they check the insured`s insurance policies to ensure that the policy does not prohibit the transfer. In addition, contractors must develop a business model that allows them to be fully paid on the proceeds of the insurance if a public holder or lawyer has been retained for adequate compensation.
The new law is complex and appropriate preparations should be made to ensure compliance with the rules. A benefit assignment (AOB) is an agreement that effectively allows a third party to act directly with your insurance company on your behalf. Under Florida law, if a citizen shareholder signs an AOB agreement with you, you must file a copy of the transfer contract signed online or by mail/delivery within three business days of the contract being executed or the start of work, depending on when it is earlier. Citizens will check your agreement to ensure that it meets all legal requirements and will inform you if the agreement cannot be accepted as written. Until an AOB meets the current legal requirements is received, citizens must deal directly with the policyholder for all correspondence related to the requirements. On May 23, 2019, the governor signed a comprehensive insurance reform law. The law creates two entirely new sections in Chapter 627 of the Florida Statutes that govern insurance contracts. The bill creates Section 627.7152, Florida Statutes, which governs transfer agreements that are regularly known in the sector as benefits allowance (“AOB”). The bill also creates section 627.7153, Florida Statutes, which expressly authorizes an insurer to contractually prohibit an insured from affecting his benefits after the loss if certain conditions are met.
The bill will come into force on July 1, 2019. Contractors do not use service agreements to make your life easier, but to make their lives easier (and get more money).