• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar

Johnson Strategies LLC - Test

Planning, Communications, Advocacy

  • Home
  • The JS Story
  • About JS
    • Mission
    • About Scott
    • Writing
  • Videos
  • Library
    • AOB prior to reforms effective July 1, 2019
    • AOB on and after reforms effective July 1, 2019
    • Citizens
    • Legislative Glossary
    • Government Studies and Reports
    • Miscellaneous Documents
    • Presentations and Powerpoints
  • Links
    • Government
    • Other Helpful Sites
  • Contact
You are here: Home / General Property Issues / AOB… the “Tipping Point” is here!

AOB… the “Tipping Point” is here!

September 15, 2015 - Opinion by Scott Johnson 1 Comment

Before I let you in on an important development in the fight against Assignment of Benefits (AOB), let’s set the stage by reviewing how we got to this point.

What is this point? I call it the “Tipping Point”. The point where someone on the other side admits that our side is right.

Since my first AOB blog in March 2013, titled; “The next big rip off!”, I’ve done my best to tell you everything I knew or learned, good or bad, about AOB. This, despite the risks, which includes threats of lawsuits; one just a few weeks back.

So…preliminary to sharing this “tipping point” with you, here’s a general summary of my blogs and conclusions that got us here:

1) No water extractor, roofer, emergency remediator, or vendor of any type actually needs to use AOB. Despite testimony, including from some members of The Florida Association of Restoration Specialists (FLARS) that they could go out of business without AOB, I’ve told my readers to avoid recommending those who use (and thus are likely to abuse) the practice. It’s a red flag. AOB means something is amiss. Assertions by AOB abusers that they need AOB to stay in business are bogus. To the contrary; they need AOB to force payment of inflated or fraudulent invoices. Any water extractor, for example, can do as hundreds of honest ones already do–simply use other methods to both help the consumer and insure payment of legitimate invoices. The approach most often used is called a “direction to pay” which is what conscientious, honest water extractors (like RyTech) use.

2) Since FLARS members and lobbyists argue so hard against reforming AOB, I’ve cautioned my readership and especially insurance agents to avoid recommending FLARS members for remediation work. After all, they are more likely to use AOB, and/or abuse it, based on FLARS sponsored workshops spreading “Insider Secrets”–or to otherwise engage in practices I consider red flags for potential consumer abuse. In a conversation I had with a FLARS lawyer, I was told that some of its members don’t use AOB. “Really?” I should’ve asked “..then how can they stay in business when their fellow members claim they’d go out of business without it?” The “tipping point” announcement below, which is what prompted this post, answers part of that question.

3) AOB exists, and is abused, because those with a low moral compass need to facilitate a litigation for profit scheme. It’s an excuse to sue and collect exorbitant fees, often without even having to go to court. Emergency remediators are coached/encouraged (often by their attorneys) on how to “squeeze” insurers who, rightfully, deny or delay payment of inflated invoices. The vendors are told…”Call us to make sure you (still, always) get paid!” (See NOTE#1 below)

4) Finally, in the case of roofers, the Florida Roofing & Sheet Metal Association (FRSA) opposes AOB and testified it ought to be “prohibited”. I’ve spoken with their lobbyist who told me  “most don’t even know what it is.” Like too many water extractors who abuse AOB, roofers who use it are predominantly “fly-by-nighters” or much worse– giving the rest of the roofing industry a bad name.

Now, back to “The Tipping Point” where the other side begins to agree!

You may recall that during my testimony in February to the House Insurance Workshop on AOB, I sat next to Jon Lavender, owner of Insurance Fire and Water Restorations (IFW). He extolled the virtues of AOB on behalf of FLARS and thus its members; Florida’s independent water restoration vendors. You can listen to his comments beginning at about the 1:00:00 mark here.

That was February. Now, six months later, Mr. Lavender is acknowledging widespread abuse of AOB and declaring that he and his company will no longer employ the practice.

In essence the FLARS spokesman repudiates the FLARS position and thus the positions, I suspect, of the independent restoration vendors that constitute the bulk of FLARS members. It’s also likely that his new stance conflicts with some law firms like Cohen & Battisti, Hale & Jacobson, and others that are among those filing huge numbers of AOB suits.

Don’t trust me on this. Draw your own conclusions by reading Mr. Lavenders entire letter yourself. As for his lobbying trips to Tallahassee, he states:

“We were stunned to learn of all of the abuse that is taking place among other companies. We certainly didn’t want to be associated with the abusers. So, due to the unethical practices of AOB’s from numerous restoration companies throughout the state along with hundreds of plumbers, roofers, and contractors, we had made the decision to no longer use this legal document.”

Frankly, I respect Mr. Lavender for reversing course based on new information. It proves he was one of the good guys all along. It also proves, at least to me, that those who refrain from acting similarly to Mr. Lavender, are the opposite.

What happens now is anyone’s guess. Will Mr. Lavender take up arms on behalf of the AOB reform effort? Why not; if, as he wrote, AOB leads to “unethical practices…by hundreds of plumbers, roofers, and contractors”.

Will his competitors still clinging to AOB have difficulty claiming they need AOB to stay in business? You bet they will! Their own spokesman is tacitly proving by his actions that such assertions are false.

Here’s the thing…

Even if Mr. Lavender doesn’t lobby to reform AOB, his letter will shout volumes.

Especially when read aloud at televised hearings immediately following a presentation by the poor sap replacing him as FLARS spokesman.

Welcome to the “Tipping Point!”

##end##

NOTE #1: As usual, don’t take my word for the abusive litigation practices; instead read two cases where the judge explains it better. Both of these judges are apparently fed up with procedural shenanigans and fraud. Both not only dismisses their claims and award attorney fees to the defendant insurer but, one appears to excoriate the attorneys and/or their cottage industry clients for abusing consumers and the legal system. I will be opining on these cases and others in more detail in a future blog, but…you can read them now here: NextGen Restorations vs Homeowners Choice. And here: Springhill Builders vs State Farm. Please let me know if you know of other similar cases I can share with my readers.

IMPORTANT: If you enjoyed this post you’re invited to subscribe for automatic notifications by going to: www.johnsonstrategiesllc.com. Enter your email address where indicated. If you’re already on the website at Johnson Strategies, LLC, go to the home page and enter your email address on the right hand side. Remember, you’ll receive an email confirming your acceptance, so…check and clear your spam filter for notifications from Johnson Strategies, LLC. ENJOY

Share this articleEmail this to someoneShare on FacebookShare on LinkedInTweet about this on Twitter

Filed Under: General Property Issues

Reader Interactions

Comments

  1. Chandler Johnson says

    September 21, 2015 at 1:31 pm

    Congratulations. Businesses that abandon AOB will thank you for this empowering information, as they adopt better business models.

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Unless otherwise attributed, articles on this site are the opinions of Scott Johnson.



Order Scott’s Books

What's Past is Prologue

Lessons from the Worst Insurance Crisis in Florida’s History... ASSIGNMENT OF BENEFITS

Fact & Fallacy

Essays & Opinions on Florida's Most Controversial Insurance Topics.

Platforms of Success

What the New Generation of Elite Sellers are Doing and How it Can Work for You!
Learn More at www.Platformsofsuccess.com

From Cartels to Competition

The Evolution of Insurance and the History of Florida's Independent Insurance Agent.
Learn More at www.faia.com

Recent blog posts

  • Collapse of an Evil Empire! PART VII—Market Impact
  • Collapse of an Evil Empire! PART VI—The Sentence
  • Collapse of an Evil Empire! PART V–Guilty as Charged!
  • Point of Personal Privilege–Jeff Grady’s Retirement
  • Collapse of an Evil Empire! PART IV ½–Update

Blog Archive

  • October 2020 (3)
  • September 2020 (2)
  • August 2020 (2)
  • July 2020 (1)
  • June 2020 (2)
  • April 2020 (1)
  • March 2020 (1)
  • February 2020 (1)
  • January 2020 (1)
  • August 2019 (2)
  • June 2019 (1)
  • March 2019 (1)
  • January 2019 (1)
  • December 2018 (1)
  • November 2018 (1)
  • September 2018 (1)
  • July 2018 (1)
  • June 2018 (2)
  • October 2017 (2)
  • September 2017 (1)
  • August 2017 (1)
  • June 2017 (1)
  • April 2017 (2)
  • March 2017 (2)
  • February 2017 (1)
  • December 2016 (1)
  • October 2016 (1)
  • August 2016 (2)
  • July 2016 (1)
  • June 2016 (1)
  • March 2016 (2)
  • February 2016 (1)
  • January 2016 (2)
  • November 2015 (1)
  • October 2015 (1)
  • September 2015 (1)
  • August 2015 (2)
  • July 2015 (2)
  • June 2015 (2)
  • May 2015 (1)
  • April 2015 (2)
  • March 2015 (1)
  • February 2015 (3)
  • January 2015 (1)
  • December 2014 (2)
  • November 2014 (4)
  • October 2014 (1)
  • September 2014 (2)
  • August 2014 (2)
  • July 2014 (2)
  • June 2014 (2)
  • May 2014 (3)
  • April 2014 (2)
  • March 2014 (3)
  • February 2014 (3)
  • January 2014 (2)
  • December 2013 (2)
  • November 2013 (2)
  • October 2013 (2)
  • September 2013 (2)
  • August 2013 (2)
  • July 2013 (3)
  • June 2013 (2)
  • May 2013 (3)
  • April 2013 (2)
  • March 2013 (3)
  • February 2013 (5)
  • January 2013 (2)
  • December 2012 (4)
  • November 2012 (3)
  • October 2012 (4)
  • August 2012 (5)
  • July 2012 (5)
  • June 2012 (4)
  • May 2012 (3)
  • April 2012 (7)
  • March 2012 (3)
  • February 2012 (3)
  • January 2012 (5)
  • December 2011 (6)
  • November 2011 (7)
  • October 2011 (6)
  • September 2011 (2)
  • August 2011 (7)
  • July 2011 (7)
  • June 2011 (4)
  • May 2011 (4)

Newsletter

Tag Cloud

7-7-7 Plan Citizens Insurance oir Rick Scott sb-480 senator fasano senator richter

Copyright 2012, Johnson Strategies LLC. Website design/development by Cali Design LLC