Wednesday, state-backed property insurance corporation, Citizens discussed a new law that makes changes to assignment of benefits process.
Under the new law, insurers will only have to pay for attorney’s fees if the settlement offer is at least 50 percent of the disputed amount.
Christine Ashburn the Chief of Legislative and External Affairs says the attorney known for exploiting the loophole the most has already said the new law closes it.
“Harvey Cohen, who is the godfather of this scheme has already said AOB is dead as of July 1, because the belief is adding this structure in now gives insurers a better chance of not having to pay fees," said Ashburn.
With the new law going into effect July 1, Cohen and others like him still have time to file lawsuits under current rules which makes insurance companies pay attorney’s fees if the settlement offer is a dollar above the disputed amount. In a video that is now no longer available, Cohen called for vendors to send in as many AOB claims before the effective date so that homeowners can quote “collect the hard-earned money [they] deserve”.