REMINDER: FPCA Homeowners Division: Meeting Scheduled for Today, July 21 at 10 a.m. – Amicus Brief
Jul 21, 2014
Florida Property and Casualty Association Homeowners Division Members:
FPCA Homeowners Division Meeting Scheduled for today, July 21 at 10:00 a.m. The conference call number: 800.369.1285; conference code: 7468537#. The purpose of this call is to discuss an amicus brief relating to assignment of benefits.
The case involves a water loss from a roof leak during Hurricane Isaac. The named insureds retained One Call Property Services to perform water mitigation services. One Call submitted an invoice and assignment of benefits. The AOB purported to assign the insureds’ “rights, benefits, and proceeds” under the policy related to work performed by One Call. Security First (“SF”) partially denied the claim and issued payment for the undisputed amount to the insureds, mortgagee, and One Call. One Call filed a one-count Complaint alleging breach of contract.
Security First moved to dismiss the lawsuit arguing that the AOB was invalid and One Call lacked standing. SF argued that under Florida law the insureds could not assign a right or benefit under the policy that had not accrued based on the policy’s anti-assignment provision. SF also argued that the AOB is a partial assignment which is invalid without the insurer’s consent. Finally, SF argued that the AOB was invalid as it violates Fla. Stat. 626.854 (acting as a public adjuster without a license) and 627.405 (insurable interest statute). The court dismissed the Complaint with prejudice based on the anti-assignment and loss payment provisions of the policy.
The appeal is based on all of the arguments addressed in the original Motion to Dismiss, and the answer brief is attached.