NU Online News Service, Feb. 22, 1:46 p.m. EST
Citing statistics from the National Insurance Crime Bureau that ranks Florida as first in the nation for questionable auto insurance claims, three associations representing insurance and business interests are pushing for legislative reforms for the state's personal injury protection (PIP) system and launching a website to spotlight the problem.
The Property Casualty Insurers Association of America (PCI), the Florida Chamber of Commerce, and Associated Industries of Florida offered six measures to help prevent PIP fraud, which has been increasing in frequency.
"According to the NICB, Florida now ranks first in the nation in questionable automobile insurance claims," said Teye Reeves, director of business climate and quality of life policy for the Florida Chamber of Commerce. "Florida's business community can no longer afford to stand by and expect PIP fraud to go away."
The six reforms recommended by the trio of associations for consideration during the state's 2011 legislative session include:
- Requesting a specific authorization that allows the use of examinations under oath by insurers to investigate fraud.
- Specifically stating that a refusal to submit to an independent medical examination (IME) or failure to show up for one is a rebuttable presumption that the failure was unreasonable.
- Allowing insurers to offer a policy that includes arbitration as an alternative dispute resolution mechanism available to both the insured and the insurer, while preserving the right of both parties to gain access to the court system, if necessary.
- Capping lawyers' fees in PIP litigation to a percentage of benefits obtained.
- Prohibiting the award of contingency risk multipliers in calculating PIP lawyers' fees.
- Supporting and expanding investigation and prosecution of insurance fraud by adding all passenger names and addresses to crash reports; improving licensing and inspections of PIP clinics; and providing more funding to the Department of Financial Services.
To help achieve their goals, PCI introduced the website InsuranceFraudUncovered.com. PCI said it will help it initiate the dialogue with state legislators and the public regarding solutions on how to reduce questionable auto insurance claims in Florida. It also provides news and examples of fraud.
"Four of the 10 U.S. cities with the highest rates of questionable claims are Miami, Tampa, Orlando, and Hialeah," said William Stander, PCI's assistant vice president and regional manager for Florida. "Based on the latest data available, Florida motorists as a group pay the second-highest auto liability insurance premiums in the nation."
"PIP fraud is out of control in Florida," said Jose Gonzalez, vice president of governmental affairs, Associated Industries of Florida. "The Insurance Information Institute estimates that, if left unchecked, the increase in premiums related to insurance fraud, a.k.a, the 'fraud tax,' could reach $946 million for insured Florida drivers in 2011. We support the efforts of InsuranceFraudUncovered.com to highlight the escalating, and costly, PIP fraud in Florida."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.