AOB Law Should Lower Premiums in Florida

New law took effect July 1.
July 21, 2019

Consumers across Florida are expected to see an end to rising insurance premiums as a result of the state’s new assignment of benefits (AOB) law, which took effect July 1, according to those who campaigned for the reforms. A report from Florida’s Office of Insurance Regulation estimated that insurers would have to raise premiums ten percent or more annually to break even because of defense costs related to AOB claims. The office indicated that in 2017 in Miami-Dade County, the owner of a $150,000 home paid an average annual premium of $2,678 for multiperil insurance from Citizens Property Insurance Corp. — higher than twice the national average.

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