• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • MENU

Court Rules on AOB 10-Day Notice Requirement

SHARE THIS

By Allan Rotlewicz and Michael Tessitore, Esqs.

Allan Rotlewicz, Esq. Courtesy, RumbergerKirk

Florida’s Fourth District Court of Appeal last week issued a ruling in Total Care Restoration a/a/o Annie Griffiths v. Citizens Property Insurance Corporation holding that the 2019 reform law applies to all Assignment of Benefits (AOB) agreements executed on or after July 1, 2019 regardless of the policy period or date of loss.  Section 627.7152, Florida Statutes went into effect on July 1, 2019 and regulates assignment of post-loss benefits agreements between an insured under a property insurance policy and any “person providing services to protect, repair, restore, or replace property or to mitigate against further damage to the property.”

The statute requires that an assignee provide notice of intent to initiate ligation to the insurer, the named insured, and the assignor at least ten (10) business days prior to filing suit.  The notice must specify the amount of damages in dispute, include a detailed written invoice or estimate of services, and in the case of work performed, proof that the work has been performed in accordance with accepted industry standards.  The Statute clearly states that the law applies to assignment agreements executed on or after July 1, 2019.  However, assignees have argued that the statute cannot apply to assignments arising out of insurance policies issued before July 1, 2019.

Michael Tessitore, Esq. Courtesy, RumbergerKirk

In Total Care, the insured suffered a water loss on June 10, 2018, but waited until July 16, 2019 to execute an assignment agreement with Total Care Restoration.  Total Care performed services at the property and claimed insurance benefits.  Citizens denied the claim and Total Care filed suit without providing the requisite notice.  Citizens moved for summary judgment arguing that Total Care was not in compliance with Section 627.7152.  Total Care, relying on Menendez v. Progressive Express Insurance Co., argued in response that the statute did not apply to its assignment as the insurance policy was issued prior to the statute’s enactment.  The trial court ruled in favor of Citizens and an appeal followed.

In affirming the trial Court’s decision, the Fourth DCA concluded that Menendez was inapplicable as it did not address the question presented: whether a subsequent contract, the assignment of benefits under an insurance policy, is subject to the notice requirements of an earlier enacted statute.  As the statute was in effect at the time the assignment agreement was executed, the Court reasoned that the statute was not being applied retroactively.  Further, Total Care did not have any interest in the claim until the assignment was executed, and could not rely on the issue date of the policy to state the statute was applied retroactively.  Finally, the assignment itself tracked the language of the statute, showing Total Care acknowledged the statute’s application.

This decision may also be beneficial to carriers seeking compliance with Section 627.70152, Florida Statutes, regarding the pre-suit notice required in an insured lawsuit.  §627.70152 went into effect on July 1, 2021 and applies “exclusively to all suits not brought by an assignee arising under a residential or commercial property insurance policy…”  Based on the Total Care decision, carriers can argue the notice requirement applies to any lawsuit filed after July 1, 2021 and, therefore, the issue of retroactive application is moot.

Allan Rotlewicz is a partner with RumbergerKirk in Tampa and represents property insurers throughout Florida in first party coverage matters regarding claims for windstorm, fire, mold, theft, and water losses. He also has jury trial experience involving cases brought by insureds and vendors (AOB claims). Michael Tessitore is an associate in the firm’s Orlando office and defends insurance companies against first-party and thirdparty coverage litigation including water, sinkhole, and fire claims. For more information, please visit www.rumberger.com.  

LMA Newsletter of 4-25-22

SHARE THIS

Tags: Allan Rotlewicz, Annie Griffiths, Assignment of Benefits, Citizens Property Insurance Corporation, Insurance Litigation, Michael Tessitore, Notices of Intent to Litigate (NOITL), RumbergerKirk, Total Care Restoration, Total Care Restoration v. Citizens Property Insurance Corporation

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2025
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts