Best & Anderson, P.A.

As reported in the Associated Press on 10/11/2007


Florida’s no-fault auto insurance system to protect motorists from being sued in most cases after an accident will return Jan. 1 under a bill Gov. Charlie Crist signed Thursday.
The new law also requires drivers to carry $10,000 of personal injury protection coverage. That requirement had been the law in Florida since the early 1970s until it expired Oct. 1.
The Legislature passed the new bill (HB 13C) last Friday in a special session.
“They made a good law an even better law by helping reduce opportunities for fraud,” Crist said at a signing ceremony.
The new bill also:
— Requires automobile insurers to notify policyholders who do not already have PIP coverage by Nov. 15 that they must obtain coverage by Jan. 1.
— Authorizes the attorney general and the Office of Insurance Regulation to take action against insurers who demonstrate a pattern of not paying valid claims.
— Streamlines the legal process for disputes by requiring all PIP claims related to a single provider for the same injured person be joined in a single lawsuit.
— Reserves $5,000 worth of benefits for physicians who provide emergency services or inpatient hospital care.
— Requires health care providers demonstrate certain qualifications before they receive PIP reimbursements.
Some large car insurance companies pushed for the system’s demise, flooding lawmakers with e-mails, letters and phone calls saying it was rife with fraudulent claims for faked injuries.
“The Legislature did not succumb to the special interests, in fact didn’t even flinch,” said Sen. Bill Posey, R-Rockledge, the lead Senate sponsor on the measure. “There is not one thing in this bill that is not consumer friendly.”
Lawmakers actually added some new, tougher anti-fraud measures as well.
Hospitals and other medical providers were concerned that without the coverage requirement, they would have been left liable for millions of dollars in care costs for crash victims who don’t have health insurance.
But there could still be some misunderstanding among motorists about their coverage, since they aren’t forced to have the coverage between now and Jan. 1. Until then, any driver involved in an accident who doesn’t have coverage could be sued to determine who is at fault and responsible for damages.
Many drivers, however, will continue to have the coverage in the interim because it is in their current policies. That coverage would still cover injuries, but won’t shield them from a lawsuit if they are in an accident with a driver without personal injury protection.