A House Republican on Friday filed a proposal that would prevent motorists from assigning auto insurance benefits to repair shops that can then pursue payments from insurers.
The proposal (HB 541), filed by Rep. Griff Griffitts, R-Panama City Beach, came after lawmakers last month barred the assignment of benefits in the property-insurance industry.
Insurers have long argued that the practice known as AOB increases litigation and drives up costs. Griffitts’ bill, filed for the legislative session that will start March 7, would prohibit assignments for auto insurance starting July 1.
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It would prevent assigning benefits to people providing “services, including, but not limited to, inspecting, protecting, repairing, restoring, or replacing the motor vehicle or mitigating against further damage to the motor vehicle.”
Auto insurers have complained in recent years, at least in part, about the assignment of benefits for windshield repairs.
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