Florida’s First District Court of Appeal Says Legislature Must Tackle Assignment of Benefits, Not Judiciary
Oct 26, 2015
In an opinion issued today, October 26, 2015, Florida’s First District Court of Appeal (“First DCA”) said it will be up to state lawmakers — not the court system — to tackle the controversial issue of “assignment of benefits.”
THE NEWS SERVICE OF FLORIDA reported that a three-judge panel of the First DCA refused to rehear a case previously decided in June 2015 that sought to determine whether an insured may assign post-loss rights under a policy without the insurer’s consent.
The First DCA also declined today to ask the Florida Supreme Court to take up the same question in the matter.
In the original case brought by Security First Insurance Company (“Security First”) in June, the First DCA backed the Florida Office of Insurance Regulation, which had turned down requests from Security First to restrict the ability of policyholders to assign policy rights without the insurer’s approval.
“We again conclude . . . that it is for the legislative branch to consider this public policy problem, not the courts, at this juncture,” the First DCA wrote. “Legislative review provides a more detailed inquiry into the current situation in the industry and greater flexibility in achieving meaningful reforms, if deemed necessary. On the other hand, courts are ill-equipped to pass judgment on the merits of the policy debate at hand, and less likely to be able to formulate a remedy that is mutually beneficial to insureds and insurers.”
To read the opinion, click here.
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