Florida’s AOB Abuse by the Numbers: ‘Alarming Trend’ Reaches Crisis Point

By | February 9, 2017

  • September 11, 2017 at 10:39 am
    Henry DiGiovanni says:
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    If the States Attorneys’ conducted a very public in-depth investigation into insurance company acts and practices they would be forced to reveal that no one is prosecuting insurance carriers, their agents and or employees for the massive fraudulent settlement tactics they employ. The truth of the matter is that in most of the United States insurance carriers are not really punished for the individual bad actions they and their vendors unleash upon policyholders. Admittedly, there are many bad contractors taking advantage of policyholders especially during catastrophic events, however, there are many more insurance carriers who support the bad acts of their restoration vendors and in-house and independent insurance adjusters who willfully employ unconscionable restoration and estimating practices at the direction of carrier executives. These unlawful practices have been well known by law enforcement for decades, but never acted on to curb the massive and apparently legal racketeering in the insurance industry. Like most mega industry businesses, (insurers, banks pharmaceutical & auto) affordable fines take the place of meaningful RICO prosecution, which individual financial dollar arrangements usually benefit government agency coffers and never pay for an individual policyholders damages. This arrangement allows carriers to rake in billions of premium dollars and pay out much less than the true value of most of their claims with no fear of meaningful regulatory prosecution and in some States like New York, lawmakers accept millions of lobbyist dollars to protect insurance carriers from individual punitive litigation actions by policyholders regardless of how egregious and or criminal the act inflicted upon a policyholder was. Since most homeowners cannot afford to pay upfront attorney fees to battle mega carriers and their obtrusive law firms they forgo thousands of dollars with no governmentally enforced restitution to be paid by the carriers who post investigation was deemed complicit in what would normally be a criminal act by any other business entity. As well, many policyholders discover a loss in value to their lifelong housing investments years later when they are informed by a purchaser’s home inspector that the insurance carrier vendor they used years prior covered up their fire damage by painting over and or re-supporting structural framing members of the home all in an effort to save the carrier the expensive cost of proper repairs. The moral of this story is that there are crooked parties with greedy intentions on both sides of the aisle and buyer must beware! AOB’s have their benefits and are much easier to investigate, regulate and correct than a carrier’s abuse.

  • November 13, 2017 at 9:02 am
    jan combs says:
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    why is the state not doing something about this? change the law, DO SOMETHING. it seems they just sit and watch and let these crooks do whatever they want. It is sad too that some politicians may have their hands out taking kickbacks and that is why nothing is getting done about it? any claims should be investigated by physically going to the house to look for themselves! that is the only way to prevent fraud, to actually go there and look!



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