For Texas, it all began with Hurricane Ike in 2008. In the run-up and during the global financial crisis, between September 2006 and the last quarter of 2008, 780,000 jobs disappeared in the U.S. construction sector. Following Ike, with its generally modest levels of damage across a wide area, “two men in a pickup” teams turned up to get homeowners to sign “Assignment of Benefits” (AOB) forms. A signed AOB form gave repairers responsibility for dealing with the insurer over the claim, and the right to pass the case onto a lawyer assembling a class action lawsuit.
The original idea of contractors sourcing AOBs may have emerged after the 2004-2005 hurricanes in Florida, when lawyer Harvey V Cohen of Cohen Grossman met with restoration contractors to encourage them to employ “Assignment of Benefits” forms so they would deal directly with the insurance company for their payments.