ASSIGNMENT OF BENEFITS BILL

A Florida Senate committee is moving forward with a proposal that would revamp the controversial insurance practice known as “assignment of benefits.” The Senate Banking and Insurance Committee voted 5-3 to approve the proposal, which Chairman Doug Broxson overhauled after an earlier version did not draw enough support to get out of committee. In assignment of benefits, property owners in need of repairs sign over benefits to contractors, who ultimately pursue payments from insurance companies. Insurers say the practice has become riddled with fraud and litigation, while plaintiffs’ attorneys say it helps make sure claims are properly paid.