Consumer Group: Floridians in for 'Rude Awakening' With PIP Law

A consumer group says Floridians are in for a "rude awakening" when the state's PIP reform measure takes effect.

Instead of measures aimed at preventing true fraud, were left with a bill that pads the pockets of big insurance companies while stripping consumers of choice and benefits," said Bill Newton of the Florida Consumer Action Network.

While insurers cited skyrocketing claims costs stemming from staged accidents under the no-fault law, Newton said the new law "will treat consumers like criminals."

"Anyone claiming PIP benefits will be subject to deposition-style examinations under oath at the insurance company's discretion, by the insurance company's psychologists, doctors and attorneys.

"In other words, your insurance company can have their shrink ask you anything they want under oath -- let your imagination help you here -- and they don't even need a reason to do so," Newton said.

Siding with the trial lawyers, Newton said the law "places arduous limitations on medical treatment and whittles consumers coverage for non-emergency injuries down to a fraction of what they are entitled.

"And, limiting attorneys fees through the elimination of the multiplier hurts consumers ability to find and pay for experienced legal representation."

Bottom line, Newton predicted that Florida motorists "will find their benefits slashed, their options limited and absolutely no focus on stamping out the rampant fraud the insurance industry claims as the cause for higher auto insurance premiums."