Assignment of Benefits Reform legislation goes into effect July 1, 2019

Assignment of Benefits Reform June 19, 2019 Florida lawmakers concluded the 2019 Legislative Session after passing HB 7065, which provides meaningful reforms that will help Citizens reduce unnecessary litigation and assignment of benefits (AOB) abuse that are driving up rates for policyholders. The bill, signed by Gov. DeSantis on May 23, and effective for assignment agreements (commonly referred to as AOB contracts) entered into on or after July 1, 2019, places limits and requirements on AOB assignees, such as contractors, roofers and water mitigation companies, and establishes requirements for insurers for claims that involve assignment agreements. Below are some of the important aspects of the legislation. Assignment agreements: Must be in writing and signed by assignor (the person, normally the policyholder, who assigns post-loss benefits) and the assignee Must include various provisions, including a provision that allows the assignor to rescind the assignment agreement without a penalty or fee by providing the assignee with a signed, written notice of rescission within specified timeframes Must include an itemized per-unit cost estimate of services to be performed For policyholders who have elected to participate in Citizens’ Managed Repair Contractor Network Program, such assignment agreements do not modify or eliminate any term, condition or defense relating to the managed repair arrangement. New duties also are established for assignees and insurers.  For lawsuits related to assignment agreements, the legislation: Eliminates use of the one-way attorney fee statute in awarding fees to assignees Provides for a reasonable attorney fee award to the insurer, the assignee or neither party based on the percentage difference between the judgment obtained by the assignee and the insurer’s presuit settlement offer The legislation also bars Citizens from implementing rate changes in 2019 for Citizens Homeowners 3 – Special Form (CIT HO-3) and Dwelling Property 3 – Special Form(CIT DP-3) policies unless the rate filing reflects projected rate savings from the legislation. Citizens also is required to inform policyholders of projected rate savings. Look for more details about the postponed September 2019 rate changes later this year.   Policyholder Communications Citizens will mail all current policyholders a letter in a staggered basis until June 30 that outlines the new rules for AOB agreements. We’ll also mail it to new policyholders on a monthly basis until our policy packets can be updated with new policy forms.  Resources Agents and the public can Search Frequently Asked Questions for more information. Agents should log in to access agent-level information. Enter AOB in the Search field. Citizens currently is updating its website and brochures with information about AOB reform. Look for updates in July. Citizens will share more AOB information as it becomes available. If you have any questions about AOB, reply to this email, call us at the number below or log into the Agents site and complete the form on the Contact Us page, choosing Other on the Topic drop-down menu.

WORK COMP WEDNESDAY - Safety Lessons Learned

Real-Life Examples of Avoidable Workplace Accidents Names have been changed to ensure confidentiality

June 4, 2019 One of the most important factors of running a business effectively is keeping employees healthy and safe. Safety Lessons Learned is a series designed to provide examples of workplace accidents that result in injury or even death to help employers recognize hazards and put the proper preventative measures in place.

Lack of Training Causes Injury to Forklift Operator Joe drives a forklift and operates other heavy equipment at ABC Warehouse in Austin, Texas. While completing a project, he discovered that he needed to adjust the width of the forks, but no one had ever shown him how. Joe decided to spread the 80-100 pound forks with his fingers. He ended up crushing his pinky, which resulted in a fracture.  Safety Lesson: Train new, inexperienced or transferred workers on the equipment they will be using. Provide employees with structured coaching. Obtain feedback that verifies employees understand the work tasks, the associated hazards, and the processes and procedures to mitigate those hazards.

Landscaping Worker Suffers Fatal Heat-Related Injury Tim works on a landscaping crew in Ft. Lauderdale, Florida. The crew was working on a hot summer day when temperatures peaked over 100 degrees. Tim did not drink enough water or take the appropriate amount of breaks during the day and suffered fatal heat-related injuries.  Safety Lesson: Remind crewmembers to prevent heat-related illnesses by following these simple steps. Drink, drink, drink. Employees should drink four cups of water every hour in 15-minute increments. Take frequent breaks. Employees need to take breaks to allow their bodies to recover. Hang in the shade. Employees can cool down quickly by standing in shaded or air conditioned areas when possible. Extreme heat, especially in climates like Florida, is both uncomfortable and dangerous. Other ways to stay safe while working in the heat include wearing light colored clothing and a hat, wearing sunscreen and reporting symptoms of heat-related illnesses immediately. For more safety tips on working in the heat, click here.

Experienced Roofer Skips Harness and Falls to His Death   Brian has owned his own roofing company for 25 years. Because of his experience in the industry, he rarely uses a harness, although he requires his team to use protective equipment. While working on a roofing job in New York City, Brian reached for a tool, slipped, and fell to his death.  Safety Lesson: Always wear fall protection when working on roofs or any other heights where the distance to the ground is more than six feet. Remember, just because you have done this before without getting hurt does not mean you never will. Falls remain the biggest cause of worker deaths in the construction industry. Situations like this not only have a physical impact on the injured employee, there is also a financial and emotional implication for all those involved.

Five Ways to Create a Safety Culture in Your Workplace Focus more on coaching and less on rules. Do not succumb to organizational complacency. Engage workers in meaningful safety conversations. Let integrity lead your workforce. Do things right no matter who is watching. Teach employees how to do their jobs correctly and then hold them to a high standard.

Contact us for all your Insurance needs! (321)725-1620  Bob Lancaster Insurance                                                      Serving Florida since 1964

Five Hurricane Hacks

Are you ready for Hurricane Season?  These 5 hacks will ensure you are!

With hurricane season in full effect, it is important to be well prepared. While some people gather their belongings and devise an evacuation plan, others prepare their homes in efforts to wait it out and ride the storm. For those of you who don’t have evacuation plans and prefer to stay in your homes during this hurricane season, here are a few super easy and fun hacks to help you prepare.

1. Washing Machine Cooler

If in need of additional cooler space, here is an efficient option for you. When at the  grocery store picking up essentials, grab a couple of extra bags of ice for your washing machine. Fill your machine with water jugs or any other items to keep them cold add the ice and close the lid. This makeshift cooler will keep things cold for several hours, dependent on how often lid is opened. Don’t panic when the ice melts, washing machines are designed to drain excess water.

2. Cup and Coin

The cup and coin tip helps ensure that your food is safe to consume during a power outage.  For this hack all you will need is a cup of water and a coin. Freeze the cup of water and place a coin on top, then place it back in your freezer. When experiencing a power outage, the placement of the coin within the cup will determine if the food in your freezer is safe for consumption. If the coin is found frozen within the cup this tells you that the water had melted at some point. If the water in the cup melted then refroze, the same can be said for the food in the freezer. So, you may need to reconsider that yummy steak dinner you’ve been saving.

3. DIY Candle

Don’t be stuck in the dark during a power outage.  If picking up candles happened to have slipped your mind, look around the house for these useful household items. Grab a can of Crisco and string to create your own candle. A can of Crisco can burn for up to 45 days. If this isn’t an item in your cabinet, use a crayon instead. A single crayon will burn for up to 30 minutes. Other useful household items that can double as a candle during an emergency are liquid oils, butter, oranges, lard, canned meats or fish in oil, cheese wax, and Vaseline. As for the wick, almost anything that will pull wax or oil into the candle flame can be used, cotton or linen works best. Always pre-prime your wicks with melted wax before making the candle, this will help with the burn quality.

4. DIY Sink

Save  the laundry detergent jugs after using the last drop.  These jugs are useful during a hurricane since water is not always readily accessible. Fill the jugs with water and have soap and paper towels handy to form a makeshift sink/hand washing station. The spout on the jug will allow for easy access to keep your hands clean.

5. Pet Potty Place

Pets are a major part of our families as well, so let’s make sure  they are hurricane ready just like you. When the storm starts to blow, your pets will need a dry, safe place to go. Create a “potty place” for your pets with a few simple items. Putting pieces of sod in a kiddie pool creates a safe place for your dogs to potty during the storm. A kiddie pool and some sod can also create the illusion that your pet is doing its business outside.

So, whether you decide to evacuate your home or wait it out, be sure to be prepared for anything the storm throws your way. Share your favorite hacks with us below, or let us know if you have hacks of your own in the “comments” section.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

                                                     Serving Florida since 1964

JUNE 1, 2019 MARKS THE BEGINNING OF HURRICANE SEASON