Insurers Applaud House Committee Support of PIP Reform

The Property Casualty Insurers Association of America applauded the House Banking and Insurance Subcommittee for supporting a bill that would limit personal injury protection auto coverage to only emergency care and services undertaken within three days of a crash.

With Florida leading the nation in questionable insurance claims from 2007 to 2009, and four out of the 10 U.S. cities with the highest rate of questionable auto claims being right here in Florida -- Tampa, Miami, Orlando and Hialeah -- it is imperative that we transform Floridas no-fault system now before it is too late, the insurers association stated in a release.

Abuse of Floridas no-fault law has resulted in nearly $1 billion in fraud over the past three years. This is the equivalent of a nearly $1 billion fraud tax on Floridas insurance consumers, which is levied on them through higher premiums. With Florida insurance consumers paying 56 percent more than consumers in other states for automobile insurance premiums, our states most honest consumers and businesses are paying the price and they deserve to be better protected. Something must be done to contain the ever-increasing no-fault losses and expenses that continue to hinder Florida consumers. We are optimistic that House Bill 119 will continue to move through the Legislature.

The committee supported HB 119, sponsored by Rep. Jim Boyd, R-Bradenton. The bill is one of four --two in the House and two in the Senate --that are aimed at PIP reform.

The other bills: HB 523, SB 254, and SB 1860.

Reforming personal injury protection insurance is one of Gov. Rick Scotts priorities for the 2012 session.

On Tuesday, Scott singled out the need to reform auto insurance in his State of the State address.

This year we must also reform auto insurance to crack down on the fraud and abuse that has run rampant and is estimated to cost Floridians $900 million, Scott said. If we do not act, the Office of Insurance Regulation predicts that costs for consumers will continue to spiral out of control. Our best estimates show a 30 percent increase in pure premium costs, year after year.