There is no crisis like the one created by the legislature. Such is the story when it comes to the automobile no-fault insurance debate that is now threatening to send the market on a victory lap, or over a cliff, depending on one's perspective. In either case, October 1 looms large as either no-fault goes the way of other discarded insurance coverage or is somehow resuscitated into a viable form of coverage. That no-fault needs to be addressed is without question. What is inexcusable, though, is that the legislature by its own hand, has had since 2003 to resolve this crisis and instead has repeatedly sidestepped this issue. It now puts in question the stability of consumers' rates, the state of the auto market, and introduced an element of uncertainty where none is needed. Given the backdrop of the very real homeowners' market crisis that the state is facing, the no-fault controversy is a time bomb that doesn't need to be ticking.

That is not to dismiss the problems associated with the no-fault coverage system. The stories of fraud and abuse are well documented and have been for years. As far back as 1999, a statewide grand jury described PIP as “rampant” in the state. Recently Chief Financial Officer Alex Sink announced that 24 individuals had been arrested in a major accident-staging ring that resulted in auto insurers being bilked out of $300,000 in fraudulent PIP claims. It is fair to say that the case is more than likely the tip of the iceberg that has long been floating along the currents of the system.

The problem is that the legislature has either not had the political will to resolve the issues or is somehow paralyzed over what direction to take. It's a classic problem, especially when the insurance industry is on one side and the doctors and attorneys are on the other. But if lawmakers had the fortitude to take on medical malpractice and workers' compensation, it is hard not to believe that they cannot roll up their sleeves and resolve the no-fault system. Part of the problem is that the no-fault situation is a “silent” crisis.