The Property Casualty Insurers Association of America (PCI) has released a new report concerning the state of Florida’s personal injury protection (PIP) regulations. Florida lawmakers recently passed a new set of rules that govern the PIP insurance system, which established no-fault auto insurance laws in the state. The insurance group claims that the law also institutes a so called “fraud tax” which may drive up insurance prices in the state and put consumers at risk of being victimized by dubious business practices.
PCI has proposed a number of legislations that would make changes to Florida’s new auto insurance laws. One of the proposed laws would give insurers much more time to investigate claims while another would put a stiff limit on attorney fees. PCI claims that Florida’s no-fault laws encourage fraud and dishonest business practices from legal and medical groups that can benefit from large insurance payouts. This would force insurers to raise prices for coverage or risk bankruptcy.
Florida lawmakers have been divided on the issue of no-fault auto insurance, but few have been willing to make additional changes to a law that have been years in the making. PCI insists that the new regulations, while consumer friendly, are overly intrusive for insurers who do business in the state. The state Legislature may take up the issue next year, but no definite action is yet clear.