What is an Assignment of Benefits?

An AOB is an agreement that, once signed, 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 involvement of the homeowner. AOBs have been used with life and health insurance policies for many years. However, it is now also being commonly used in homeowners insurance claims by restoration companies and contractors. Signing an AOB can be helpful with navigating the claims process, but if misused, it can lead to harmful consequences for the homeowner.

https://www.myfloridacfo.com/Division/Consumers/Assignmentof...

Assignment of claims
In a similar way, a money launderer may arrange with groups of otherwise legitimate people,
perhaps owners of businesses, to assign any legitimate claims on their policies to be paid to
the money launderer. The launderer promises to pay these businesses, perhaps in cash,
money orders or travellers cheques, a percentage of any claim payments paid to him above
and beyond the face value of the claim payments. In this case the money laundering strategy
involves no traditional fraud against the insurer. Rather, the launderer has an interest in
obtaining funds with a direct source from an insurance company, and is willing to pay others
for this privilege. The launderer may even be strict in insisting that the person does not
receive any fraudulent claims payments, because the person does not want to invite
unwanted attention.

http://www.iaisweb.org/file/34375/examples-of-money-launderi...

Family Golf owned an insurance policy issued by defendant covering property damage and loss of business. The policy covered the approximately one hundred properties owned by Family Golf, including the Golf Center. In preparation for the sale of the Golf Center to plaintiff, Family Golf executed an Assignment of Insurance Claim (the "Assignment") on March 19, 2001.

https://casetext.com/case/bronx-entertainment-v-st-pauls-mer...

ssignment of Claim after a Loss: What Homeowners Should Know
Assignment of Claim after a Loss: What Homeowners Should KnowLet’s start with the basics. If you, as a homeowner, sustain property damage or losses because of a covered event (like a fire, for example), you will need your home fixed. You choose a contractor or restoration company to do the work – but the check from the insurance company has not come through yet, and you need them to start right away. So, what can you do?

You can sign an “assignment of claim,” which assigns your rights (as the policyholder) to benefits and proceeds from the loss, to the company or contractors. In the simplest of terms, the assignment of claim allows your contractor to get paid directly from the insurance company.

https://www.gilbertfirm.com/2018/03/assignment-claim-loss-ho...