A Florida bill is under review that “provides requirements and limitations for property insurance and motor vehicle glass assignment agreements; provides burden of proof; provides that assignment agreement does not affect managed repair arrangements under property insurance policy and motor vehicle glass policy; provides that acceptance by assignee of assignment agreement is waiver by assignee and its subcontractors of claims against insured; [and] specifies insured’s payment obligations under assignment agreement; and requires notice of intent to initiate litigation.”
Among its provisions, the proposed bill, the bill, H 7065, would require that the following statement appear on the Assignment of Benefits form in 18-point, bold, uppercase type:
“YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN 7 BUSINESS DAYS AFTER THE DATE THIS AGREEMENT IS EXECUTED. HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR PROPERTY INSURANCE POLICY.”
The bill was introduced on March 13 and referred to the House Insurance and Banking Subcommittee.
Click here for the full text of H 7065.