Late last year I failed to report that the fight against Assignment of Benefits (AOB) took another hopeful step forward.
Recall the reforms of 2019 in which new requirements were placed on AOB’s? As helpful as they were, they were not an outright prohibition as some thought. Instead HB-7065 made the use of AOB’s less likely and provided safeguards against consumer abuse. These safeguards, including improvements to the one-way attorney fee statute, were intended to reduce invoice inflation, massive fraud and mounds of frivolous litigation. The operative language restricted AOB’s to emergency work which is the lesser of $3,000 or 1% of Coverage A. (See NOTE #1 below)