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Member Alert: Support Assignment of Benefits Reform!

Assignment of Benefits (AOB) contracts allow policyholders to assign their rights under an insurance contract to a third party, such as a contractor. Unfortunately, this creates opportunities for abuse, inflated claims, and can disrupt the ability for an insurer to work with their insured directly.

The negative effects of this practice, especially in catastrophe prone areas, has led to action throughout the country to ban the practice entirely or to put in meaningful reforms to protect consumers.

PIAW is actively supporting legislation authored by Senator Mary Felzkowski and Representative Calvin Callahan to create reasonable guardrails that protect consumers, while still allowing for limited and transparent use of AOB agreements.

WE NEED YOUR HELP TO BUILD SUPPORT FOR THIS IMPORTANT LEGISLATION!

Take just a minute to call or email your State Senate and Assembly Representatives and urge them to cosponsor LRB-3605!

Click the link below to find your legislators and then use the talking points below, send them the provided example email, or send an email in your own words! Questions? Call us at 608-274-8188!

Find My Legislators

Talking Points: 

  • Senator Mary Felzkowski and Representative Calvin Callahan are circulating legislation to create reasonable guardrails to protect consumers in Assignment of Benefits contracts
  • Currently, Wisconsin policyholders can transfer their rights under an insurance contract to another party which can lead to confusion and abuse within the claims process.
  • As an agent, this legislation is important because it will prevent insurance fraud and abuse, streamline the claims process for faster resolution for my insureds and protect them from predatory contractors.

The proposed legislation will:

  • Prohibit contractors from rebating insurance deductibles or negotiating insurance claims on behalf of the homeowner
  • Require providing itemized descriptions of work, materials, fees and total costs
  • Ensure policyholders retain the right to cancel an agreement within five business days
  • Hold violators accountable with penalties including voided contracts and fines

Please cosponsor LRB-3605, authored by Sen. Felzkowski and Rep. Callahan!

 

Email Template:

 

Dear (Senator/Representative _______),

As an independent insurance agent and member of the Professional Insurance Agents of Wisconsin, I urge you to cosponsor Assignment of Benefits reform legislation authored by Senator Mary Felzkowski and Representative Calvin Callahan (LRB-3605/1). 

Under current law, Wisconsin policyholders may enter into contracts assigning their rights under an insurance contract to a contractor or other third party. Unfortunately, this can open the door to abuse, inflated claims and confusion for consumers in the insurance process. As an agent, it is extremely important that my clients' insurance contracts between them and their insurer are protected and there is fairness and transparency in the claims process. 

Key provisions in the proposed legislation include prohibiting contractors from rebating deductibles or negotiating claims, requiring clear itemized contracts, preserving a homeowner’s right to cancel within five days, and enforcing penalties for violations.

This legislation establishes reasonable and common sense protections for consumers in AOB contracts, while still allowing for their transparent and fair use. 

Please support this important consumer protection measure and sign on as a cosponsor of LRB-3605/1. Thank you for your consideration.

Sincerely,

 

Your Name 
Your Agency
Your Home Address

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