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Assignment of Insurance Benefits Contracts: Resolving AOB Claims and Defending AOB Lawsuits

AOB's Scope, Invoking the Appraisal Remedy, Enforcing Conditions to Payment, Handling Multiple Assignments

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Thursday, January 21, 2021

Recorded event now available

or call 1-800-926-7926

This CLE course will guide insurance practitioners to an enhanced understanding of the use and abuse of assignment of benefits (AOB) whereby a third party, such as a contractor or physician, steps into the insured's shoes to negotiate claims with, and to receive payments and benefits directly from, the insurer. The panel will discuss the importance of any contractual limitations on AOBs, how AOBs affect the adjustment and settlement of losses, whether the assignee might be an unlicensed public adjuster, conflicts and competing interests AOBs can create, how AOBs can create "Catch-22" scenarios for insurers, and best practices for investigating and countering suspicious claims.


AOB is standard practice in insurance: an agreement that transfers the insurance claims rights or benefits of the policy to a third party. An AOB gives the third party authority to file a claim, make repair decisions, and collect insurance payments without the policyholder's involvement.

AOBs have been used with life and health insurance policies for many years. Now, AOBs are commonly used in homeowners' insurance claims by restoration companies and contractors. AOBs can help navigate the claims process but can lead to unintended consequences for insurers and policyholders.

Savvy counsel must understand the nuances of AOBs and their impact on claims, along with the evolving approaches of public adjusters, contractors, and lawyers in the first-party property insurance context.

Listen as our authoritative panel of insurance practitioners discusses the current state of the law, including state-specific reform efforts and trends, how AOB affects the adjustment of a loss, and strategies for negotiating the loss settlement. The panel will also address the importance of understanding the competing interests in the policy proceeds, best practices for investigating and countering contractor misrepresentations, and related appraisal and litigation issues.



  1. Assignment of benefits overview
  2. The current state of the law
  3. State reform efforts and trends
  4. Policyholder perspectives
  5. Insurer perspectives
  6. Best practices and case studies


The panel will review these and other key issues:

  • What are the essential elements of an AOB contract, and who benefits from it?
  • What is the impact of a "non-assignability" clause in the insurance contract?
  • What are "red flags" for potential fraud involved with the assignment of claim presentations?
  • What are the best strategies to help navigate a policyholder's claim through an AOB situation?
  • What is the current state of the law and state-specific reform efforts?
  • What are the critical AOB-related appraisal and litigation issues?


Friedman, Robert
Robert Friedman


Mr. Friedman provides corporate insurance counseling to companies in Florida, the Caribbean, New York, and other...  |  Read More

Rybny, C. Scott
C. Scott Rybny

Chair Insurance Coverage & Extra-Contractual Litigation Group
Morgan & Akins

Mr. Rybny represents insurers in all phases of first and third party insurance disputes, including pre-litigation...  |  Read More

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