What is an Assignment of Benefits and Under What Circumstances Should You Sign One?
An insurance policy affords an insured rights and benefits under the insurance policy, which is a contract. Under certain circumstances, such as a property damage loss, an insured might need to emergently hire a contractor to assist usually a little restoration on mold for mediation. Rather than pay the contractor at the time of service, the insured assigns their rights or certain rights under the insurance policy that allows the contractor to submit their bills directly to the insurance carrier. An assignment of benefits should be used only in emergency situations.