Why You Can’t Use Assignment of Benefits without a Proper Invoice: A Lesson for High School Students

– The Florida Legislature passed Section 627.7152 to address litigation abuse by Assignment of Benefit holders.
– The section requires AOB agreements to meet strict requirements to be valid and enforceable under Florida law.
– One of the requirements is that the AOB agreement must include a written, itemized, per-unit cost estimate of the services to be performed by the assignee.
– The estimate must contain a per-unit breakdown of the specific services agreed upon at the time of assigning the agreement. 1. The Fourth DCA affirmed a trial court’s ruling requiring strict compliance with Florida’s 627.7152 statute.
2. The court upheld the requirement that the assignor must be provided with an itemized list of services and costs at the time the assignment of benefits is signed.
3. The court dismissed a breach of contract action due to an invalid and unenforceable assignment of benefits (AOB).
4. The decision aims to prevent AOB holders from unilaterally expanding the price and scope of services after the assignment is executed.
5. This ruling may help insurance carriers prevent inflated and disputed insurance claims from being brought to court.

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