The American Insurance Association recently reported that the Florida House and Senate have approved legislation to restructure the state's no-fault auto law, which comes in addition to the approval of several other reforms that are supposed to help cut medical costs, reduce litigation, and diminish fraud in the personal injury protection system.

The Insurance Information Institute reported that in Florida's case, payments for medical care under the personal injury protection part of the policy can only be made when ordered or prescribed by authorized medical care providers. The tort liability system will apply to claims filed during this time, unless all claimants have no-fault policies that are still in effect.

The changeover to the new no-fault system will happen in a single action, and auto owners are not required to have PIP coverage during the time between the lapse of the old law and the start date of the new law.

According to the American Insurance Association, as of Jan. 1, 2008, all drivers in the state will be required to have no fault/PIP coverage and insurers will be able to use the rates and forms for PIP coverage that were in effect as of Sept. 30, 2007, without making a new filing.

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