Assignment of benefits (AOBs) has been a controversial topic recently, as insurers allege some auto glass shops, primarily in Florida and Arizona as well as other states with a zero-deductible for auto glass, are committing fraud and entering litigation arbitrarily. Meanwhile, these auto glass shops claim they just want to get paid fairly.
However, AOBs include two components. The first is the assignment of payment, which permits the insurer to pay a third party directly for its performed services. There is little controversy surrounding the assignment of payments, as both insurers and auto glass shops agree that it is in the best interest of the insured.
The second component is the assignment of rights. Some insurers allege this is being used to charge unsuspecting insureds higher than customary rates, especially in zero deductible states. Many glass shop owners dispute this charge, alleging insurers are trying to artificially lower their payments to the shops for their work, especially if the shop has no pricing agreement with the insurer or its network.
The November-December issue of AGRR™ magazine explores this topic with an in-depth report.