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Citizens' statement on signing of AOB reform bill

Barry Gilway, President, CEO and Executive Director of Citizens Property Insurance Corporation, issued the following statement Thursday following the signing by Governor Ron DeSantis of HB 7065, a bill addressing assignment of benefits (AOB) reforms.

“I want to thank Gov. DeSantis for his quick action on this much-needed piece of legislation,” said Barry Gilway, Citizens President, CEO and Executive Director. “This new law represents a major step forward in our efforts to stem rising premiums caused by unnecessary litigation and assignment of benefits abuse. It is going to make a difference.”

The measure, which goes into effect July 1, bolsters consumer protections by tightening policy language requirements for the execution, validity and effect of assignment of benefits agreements. The law also creates a formula to determine the award of attorney fees in cases between insurers and third parties in assignment of benefits litigation. The law is expected to curtail an exponential growth in AOB litigation and abuse that has contributed to rising insurance costs for Floridians.

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En el 2002, la Legislatura de la Florida creo a Citizens Property Insurance Corporation (Citizens), un asegurador alternativo sin fines de lucro, cuyo propósito público es proveer seguro, y atender a las necesidades de propietarios de viviendas que no pueden encontrar cobertura en el mercado privado de seguro.

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