Archive: November 2021

Historically, Florida common law has allowed parties to assign their contractual rights to third parties. There are some exceptions–such as agreements involving personal service obligations or that otherwise violate public policy–but generally speaking, one party cannot prohibit the other from assigning their rights under a contract. And although Florida statutes state that a contract for insurance “may be assignable, or not assignable, as provided by its terms,” courts have long held that an insurer cannot demand consent before allowing a policyholder to assign insurance benefits to a third party.

Judge: Insurer Cannot Require Consent for Assignment of Post-Loss Claims

A recent decision by a federal judge in Fort Myers, Florida, Sabran v. Rockhill Insurance Company, illustrates the difficulties faced by insurance companies in attempting to enforce restrictions on assigning policy benefits. This case revolved around a Florida property damaged by Hurricane Irma in 2017. The property owner, a limited liability company (LLC), filed a claim with its insurance carrier. The insurer denied the claim in 2019.