Citizens Insurance denies sharing savings with water-loss review contractor
Citizens Property Insurance Corp. released documents Monday refuting arguments that it pays incentives to the company that reviews its repair estimates on water losses.
The documents include a letter from Lynx Services LLC’s North American manager, Ramon Suarez, refuting the charge.
“Lynx has found no invoice or evidence that Lynx receives any type of commission or cut of the difference between the contractor’s original estimate and the lower negotiated payment for its review of water mitigation invoices,” Suarez wrote.
“Although our contract with Citizens has a provision that allows for payments to Lynx based on flat fees and upon a percentage of the savings of the original invoice reviewed, the records reviewed indicate that Lynx has only been paid on a flat fee basis,” he continued.
Citizens provided a link to the documents.
The contract came up during Monday’s meeting of the Senate Banking and Insurance Committee, as the panel delayed a vote on Chairman Doug Broxson’s legislation (SB 122) restricting Florida’s one-way attorney fee in insurance litigation.
Supporters see the bill as a way to discourage litigation driven by assignment of benefits agreements, or AOBs.
In opposing the bill Sen. Annette Taddeo, a Miami Democrat, said