Florida Senate Meets Challenge of Reforming PIP Insurance

State of FL, Oct 28, 2004

Tallahassee - Today, the Florida Senate passed legislation seeking to reform Florida's personal injury protection (PIP) insurance system. "No-fault" insurance provisions enacted by the Florida Legislature in 1971 require every owner of a registered vehicle in Florida to maintain $10,000 of "no-fault" personal injury protection (PIP) and $10,000 in property damage insurance.

Sponsored by Senator JD Alexander (R-Winter Haven), Committee Substitute for Senate Bill 1202 creates the "Motor Vehicle Insurance Affordability Reform Act," which will weed out rampant fraud in the current system by enacting increased penalties for those soliciting accident victims, individuals intentionally causing motor vehicle accidents and health care professionals involved in fraudulent claims and billing processes.

"The impact of this legislation will be felt by all Floridians, resulting in potential savings of up to $240 annually on their average auto insurance premiums," stated Senator Alexander.

This bill addresses the additional costs borne by inappropriate diagnostic testing, inflated medical charges, and over-utilization of medical treatments by empowering the Agency for Health Care Administration (AHCA) to monitor and regulate all health care providers treating accident victims. The intent of the legislation is to decrease the number of fraudulent claims facing insurance companies which will result in appropriately priced PIP insurance premiums.

"Real reform is recognized by addressing all aspects of a problem. The Senate, under the leadership of Senate President Jim King, carefully dissected the complex problems plaguing the PIP system in order to introduce multifaceted reform," concluded Senator Alexander.