PIP FRAUD – HB 967/SB 1694 and HB 1411/SB 1930
We’ll start off easy. This one is truly a no-brainer. PIP fraud is driving up motorists’ insurance costs in Florida to frightening levels (see Lynne McChristian’s column on page 14). This may be the year legislators finally demolish the cadre of fraud rings, sham PIP clinics, staged crashes, and pretend passengers. The problem has received a generous amount of positive media attention thanks to aggressive and collaborative actions from industry, consumer, and government groups. We just need to settle on one set of bills.
This legislation addresses cost drivers, deceptive trade practices by public adjusters, sinkholes, insurer surplus, and more. William Stander of the Property Casualty Insurers Association of America calls the legislation “a great step forward toward restoring private, market-based solutions in Florida.” Opponents have been vocal, confrontational, and relentless—it’s almost like having Charlie Crist back in town.
The bill has been inundated with proposed amendments, most of which have failed in committee hearings. (Although an amendment that keeps in place current state law requiring insurers to pay replacement cost in advance of repairs being made, instead of allowing insurers to hold back a portion of payment until a policyholder shows receipts for part of the work, did pass—for now.)