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

Johnson Strategies

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 / Advocacy / Latest Decision on AOB!

Latest Decision on AOB!

January 13, 2025 - Opinions by Scott Johnson Leave a Comment

Assignment of Benefits Suit Fails for Lack of Standing

By Barry Zalma

Holding Insurance Companies Accountable, LLC (“HICA”) challenged the entry of summary judgment for American Integrity Insurance Company of Florida (“American Integrity”). HICA, as an assignee of post-loss insurance benefits, sued American Integrity for breach of contract. The trial court ruled that HICA lacked standing to sue because the assignment that it relied on did not follow the governing statute.

Holding Insurance Companies Accountable, LLC a/a/o Leonard Caruso v. American Integrity Insurance Company of Florida, No. 5D2023-2810, Florida Court of Appeals, Fifth District (January 3, 2025) resolved the dispute.

FACTS

Leonard Caruso owns a house in The Villages. In 2019, the house suffered roof damage. Caruso reported the loss to his insurer, American Integrity. He selected Noland’s Roofing to repair the damage and signed a “Direction of Payment” instructing American Integrity to pay Noland’s Roofing directly.

After receiving American Integrity’s valuation of his claim, Caruso signed an “Assignment of Benefits Contract” with HICA in 2020.

HICA is a business that purports to help homeowners enforce their insurance rights. The document indicated that HICA would not provide “any services to protect, repair, restore, or replace [Caruso’s] property or to mitigate against further damage to [Caruso’s] property, as contemplated by” section 627.7152, Florida Statutes. However, it stated that “[a]ny payments shall be made in accordance with any Direction of Payment relative to” Caruso’s claim.

Ultimately, HICA-as Caruso’s assignee-sued American Integrity for breach of contract, alleging that American Integrity failed to pay the full value of Caruso’s claim. HICA demanded “payment in accordance with the existing Direction of Payment.”  American Integrity raised lack of standing as an affirmative defense, maintaining that the assignment was “invalid and/or void” and the court granted American Integrity’s motion.

The court’s order included these findings:

“The parties agree that [HICA] did not comply with the provisions of Fl. Stat. Sec. 627.7152. The issue for the Court to determine is whether the “assignment of benefits” obtained by [HICA] from CARUSO is subject to Fl. Stat. Sec. 627.7152 ….

Section 627.7152 was enacted by the Florida legislature in 2019 to regulate assignment agreements that seek to transfer insurance benefits from the policyholder to a third party. Under the statute, an “[a]ssignment agreement” is “any instrument by which post-loss benefits under a residential property insurance policy . . . are assigned or transferred or acquired in any manner . . . to or from a person providing services to protect, repair, restore, or replace property or to mitigate against further damage to the property.” § 627.7152(1)(b), Fla. Stat. (2020).

Before assigning his benefits to HICA, Caruso signed a direction of payment in favor of Noland’s Roofing, which instructed American Integrity to make Noland’s Roofing a payee on any disbursement check. Here, the chosen vendor is Noland’s Roofing. HICA’s corporate representative also acknowledged that the goal of HICA’s lawsuit was to recover the replacement cost of Caruso’s roof, plus interest and related costs.

There was no genuine dispute that consistent with the assignment’s terms, any funds recovered by HICA will go to Noland’s Roofing. As the trial court found, this mandatory pass-through of benefits from HICA to Noland’s Roofing places the assignment within the broad reach of section 627.7152. Even though HICA will not personally scale Caruso’s house to repair his roof, it is seeking funds to facilitate those repairs.

The assignment HICA relies on is an “assignment agreement” under section 627.7152.

The legislature mandated that such assignments comply with all other provisions of that statute. Because the assignment here did not do so, it is “invalid and unenforceable.” Without a valid assignment, HICA has no standing to sue American Integrity.

ZALMA OPINION

Because the state of Florida found that there was an abuse by roofers, contractors, and others by use of the assignment of benefits increasing unnecessary litigation impacting the availability of insurance for citizens of Florida, enacted a statute to limits the assignments. The statute was violated by Plaintiff HICA and its suit was found to be based upon an invalid and unenforceable assignment.

##end##

Please view “The Johnson Strategies Story”

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!

facebookShare on Facebook
TwitterPost on X
FollowFollow us
PinterestSave

Filed Under: Advocacy

Reader Interactions

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.

To subscribe to Scott’s blog…

JS Contributors

Don Brown
Particularly on insurance issues, Don Brown brings expert legislative acumen to the JS team. First elected in 2000 he emerged as an architect on numerous insurance related reforms, predominantly Property Insurance. He’s been an independent insurance agent for over 25 years and is currently a sought-after speaker, consultant and author. Learn more
David Thompson, AAI, CPCU, CRIS
David Thompson has a well-deserved reputation across the country as a preeminent expert in the Property & Casualty field. Learn more
Bill Wilson, CPCU, ARM, AIM, AAM
Bill is one of the most respected speakers and writers on P & C issues in the U.S. He is recognized by his peers as someone who can explain complicated technical subjects in an easily understood and interesting fashion. His list of accomplishments and awards is legendary. For good reason his books, articles and consulting services are in continuous demand. Learn more
Barry Zalma, ESQ. CFE
Johnson Strategies has relied upon Mr. Zalma on numerous occasions for his research and insight into matters of insurance fraud, bad faith, relevant case law and expert analysis. Learn more

Order Scott’s Books

Collapse of an Evil Empire

Fraud and greed pushed home insurers to the brink. Something bold had to be done. This is the story of the disbarment of Florida’s most prolific litigator leading to the most comprehensive tort reforms in Florida, and perhaps American, history.

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!

From Cartels to Competition

The Evolution of Insurance and the History of Florida’s Independent Agent

Recent blog posts

  • AGENTS, ADJUSTERS, INSURERS BEWARE—THE RED FLAGS OF FRAUD!
  • The Delicate Balance: Addressing MGA Concerns Without Creating Market Uncertainty
  • Are Florida’s MGA’s Under Attack?!
  • A Smarter Approach to Hurricane-Resilient Homes and Insurance Stability…
  • How Do Other Jurisdictions Manage Hurricane Risk Exposure?

Blog Archive

  • April 2025 (1)
  • March 2025 (2)
  • February 2025 (2)
  • January 2025 (2)
  • October 2024 (3)
  • September 2024 (2)
  • August 2024 (2)
  • May 2024 (1)
  • January 2024 (1)
  • October 2023 (4)
  • September 2023 (2)
  • April 2023 (1)
  • March 2023 (2)
  • February 2023 (3)
  • January 2023 (1)
  • December 2022 (2)
  • November 2022 (1)
  • August 2022 (2)
  • July 2022 (1)
  • June 2022 (1)
  • May 2022 (2)
  • March 2022 (4)
  • February 2022 (3)
  • January 2022 (3)
  • November 2021 (2)
  • October 2021 (3)
  • September 2021 (1)
  • August 2021 (3)
  • July 2021 (4)
  • April 2021 (5)
  • March 2021 (3)
  • February 2021 (6)
  • January 2021 (6)
  • December 2020 (2)
  • 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)

Tag Cloud

7-7-7 Plan Citizens Insurance oir Rick Scott sb-480 senator fasano senator richter
Unless otherwise attributed, articles on this site are the opinions of Scott Johnson.

Mission: Satisfaction Guaranteed

Johnson Strategies (JS) works to establish and achieve goals promoting products or idea's to customers, state policymakers and the consuming public. This is done on behalf of both corporate and individual clients, non-profit trade associations and membership societies. JS specializes in planning, communication and advocacy for a wide range of interests focused in the property and casualty insurance field. Our simple mission is to guarantee satisfaction based on a comprehensive needs analysis and mutually defined goals.

Categories

Popular Tags

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

Post Calendar

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

Recent Posts

  • AGENTS, ADJUSTERS, INSURERS BEWARE—THE RED FLAGS OF FRAUD!
  • The Delicate Balance: Addressing MGA Concerns Without Creating Market Uncertainty
  • Are Florida’s MGA’s Under Attack?!
  • A Smarter Approach to Hurricane-Resilient Homes and Insurance Stability…
  • How Do Other Jurisdictions Manage Hurricane Risk Exposure?
  • PART II of “What Agents Need to Know About Public Adjusters…
  • Latest Decision on AOB!

[footer_backtotop]

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