From the editor

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.

Auto rates are down and profits are up. Given that situation, it is hard to argue against the doctors and lawyers that there should be changes. But once again it is up to lawmakers to measure the needs of today with the potential problems of tomorrow. No-fault is the only mandatory coverage that doesn't have some medical fee schedule or utilization controls. As a result, it has created a cottage industry where a revolving door of patients has produced untold dollars for unscrupulous doctors and lawyers. That is what is at issue at the end of the day. Fix that and you fix no-fault and you do so at no penalty to the millions of auto owners around the state.

Like I said, the legislature created this crisis when it created a timeline in 2003 that it seems determined not to follow. Four sessions later, not to mention the lineup of special sessions, lawmakers are now faced with the unenviable task of whether to punt, pass, or kick. For now, Governor Charlie Crist is teeing up the ball with the prospect of holding a special session to allow lawmakers one last chance to put the crisis between the goalposts. The question is whether lawmakers will choose to leave the field or kick the ball. They have until October to decide.