With the implementation of Florida Statute §627.7152 and Florida Statute §627.7153, it is essential to run a cost-benefit analysis before pursuing any litigation with an Assignment of Benefits claim in Florida.

The goal of the bill is to reduce the number of abusive AOB claims in Florida by changing the attorney’s fee structure for Assignment of Benefits Insurance Coverage Pre-Suit Litigation.

In short, you have to calculate the difference between the judgement obtained by the assignee and pre-suit settlement offer from the insurer.

If it is less than 25% of the disputed amount (ie less than 25% above the difference between assignee’s settlement demand and the insurance company’s settlement offer), then the insurance company is entitled to an award of its reasonable attorney fees from the assignee.

If the judgement is at least 25% but less than 50% of the disputed amount, both parties pay their respective attorney’s fees.

And if the judgement is more than 50% of the disputed amount, you are entitled to an award of reasonable attorney fees.

Feel free to try out our calculator on the side to see how much of an award you would need to defray the cost of litigation. And if you have any questions, please feel free to contact us.