Are All Post-Loss Assignments Of Benefits Created Equal? Accrued vs. Unaccrued Rights Being Assigned

Originally published by Shaun Marker.

Well many folks in the insurance industry have been waiting some time for this moment… the decision of the validity of post-loss assignments of benefits in Florida. Several opinions were recently issued on the same day (May 20, 2015) by Florida’s Fourth District Court of Appeals related to assignments of benefits in property insurance claims.1 The cases involve the typical scenario where a policyholder hires a water remediation contractor after suffering a loss, and instead of having to pay them out of their pocket for the work, they issue and assignment of part of the claim proceeds to the vendor.
One Call is the case where the Fourth DCA wrote its opinion, and the others reference that opinion for the same line of reasoning. The insurance carriers raised a few arguments to invalidate the assignments of benefits in the cases. Initially, the appellate court rejected the argument that any language of the particular insurance policy prohibited assignment of claim benefits…

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