Logan McFaddin: Protect Floridians against AOB abuse

Builder And Client Inspecting Roof Damage
We will continue to urge lawmakers to take action in order to protect their constituents from this type of abuse.

Logan McFaddin headshot

Did you know Florida continues to rank as one of the most expensive states for homeowners’ insurance? In fact, according to the Insurance Information Institute, the average premium rose from 30 percent between 2007 and 2015.

That’s not all, Florida’s legal expenses have grown more than twice the national average.

Coincidence? We think not.

According to a new report by the Florida Justice Reform Institute, assignment of benefits abuse continues to result in a significant cost for consumers for the eighth year in a row.

Insurers are here for you to help recover after a major weather event, but there are bad actors who are trying to stop that from happening. With hurricane season just two months away, we hope legislators will come up with a solution to stop this type of abuse.

It all started with homeowners and now it’s rapidly growing on the auto glass repair side. According to the Florida Department of Financial Services, in 2006, approximately 400 auto glass AOB lawsuits were filed against auto insurers. In 2016, nearly 20,000 lawsuits were filed. More and more victims with auto and homeowners’ AOB horror stories are coming forward and sharing their experiences.

Consumers are often approached at local car washes, gas stations, in parking lots or even at their homes, and are offered cash rebates, gift cards, or steak dinners by scammers who claim they can work with the person’s insurance company on a free windshield replacement. The repair company then convinces the consumer to sign an AOB authorization, but by doing so, the person essentially hands over all the rights and benefits of his or her insurance policy. Once the dishonest vendors have control of the insurance benefits, they team up with trial lawyers to inflate claims and then sue the insurance companies when they question the cost. Ultimately, these fake and inflated claims and lawsuits drive up the cost of auto insurance for everyone.

Very similar situations happen on the homeowners’ side, which is why Governor Ron DeSantis, CFO Jimmy Patronis and OIR Commissioner David Altmaier, along with numerous consumer advocates, real estate agents, construction contractors, insurance agents, and other business leaders have partnered to fight AOB abuse.

Together, we will continue to urge lawmakers to take action in order to protect their constituents from this type of abuse.

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Logan McFaddin is the regional manager for the American Property Casualty Insurance Association.

Guest Author


2 comments

  • Pedro

    April 22, 2019 at 10:04 am

    It makes more sense to go after the dishonest vendors. We still need AOB assignments otherwise some repairs will never get done if it was left to the insurance companies alone.

  • DAVID

    April 22, 2019 at 5:46 pm

    How do you know when an insurance executive is lying: Her lips (or in this case, her computer keys) are moving. This brain numb twit needs to realize, our insurance rates are higher because we live in a hurricane zone. DUH. Insurance executives moan and bitch about an insurance crisis when they have to pay claims and not pocket the profits. Look at Richard Parillo, Jr’s home in Chicago. This owner of United Auto Ins Co has an estate that encompasses 6 square city blocks. (google the images) It has gravel shipped in from France because it makes a unique sound when walked upon. This is just one example of the gross profits the insurance executives enjoy. An insurance executive does not make this disgusting income by paying claims; they make this disgusting income by NOT paying claims, or getting out cheap. These insurers should be regulated where profits should be regulated and a percentage of every premium designated to pay claims. If the amount designated to pay claims is not paid, they need to return to the policy holders. They have their own unregulated reinsurance that covers tragedies. If they mis-manage the company, they are not personally liable unless the mis-management is found to be criminal. Don’;t buy this bullshit from this trumpet, this twit, this insurance whore. All she is doing is protecting the profits of the wealthy insurance companies. She is a dirty excuse for a human.

Comments are closed.


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