By a News Reporter-Staff News Editor at Real Estate & Investment Business — An Orlando contractor has become the newest face of reported Assignment of Benefits abuse in Florida, accused of defrauding 19 homeowners across eight counties in Florida and another in Texas. Timothy Cox was arrested on June 5 for allegedly stealing nearly $140,000 from the homeowners and their insurance companies for home repairs his firm never provided. Cox’s case is one of more than 100 ongoing investigations statewide involving Assignment of Benefits (AOB). But there have been thousands of other AOB abuses in cases that have either been settled or the homeowner was intimated to not report it. AOB abuse has created an additional $1 billion of inflated insurance claims over recent years – costs eventually passed along to all homeowners through higher rates. And the problem is getting worse.
Join Demotech, among others, this Wednesday on June 20 at 12 noon ET for “Industry Beware: Inside the AOB Epidemic,” an interactive webinar with insurance industry leaders who are tackling AOB abuse head-on. Learn what insurers can do to combat the impacts of AOB fraud on their business and on their policyholders.
This article provided by NewsEdge.