INDIANAPOLIS (March 14, 2006)—Reports recently released by two nationally recognized insurance research organizations underscore the argument that Florida’s current no-fault auto insurance law is not working and should be allowed to sunset, says an official of the National Association of Mutual Insurance Companies (NAMIC).
NAMIC Senior State Affairs Manager David Reddick says the reports released by the Insurance Research Council (IRC) and the National Insurance Crime Bureau (NICB) help to bring into “clear light” the problems that exist in Florida’s current law. Several NAMIC member companies doing business in Florida favor letting the law sunset in 2007 as is currently contemplated in the law.
125 NAMIC member companies write 34 percent of the automobile insurance in Florida.
Reddick said the IRC report, released March 3, found that Personal Injury Protection (PIP) claims costs in Florida increased at double-digit rates in the past three years, far outpacing the rate of inflation. The 47-page IRC report also noted that as claim costs increased, the seriousness of PIP claims declined.
Meanwhile, Reddick said the NICB report, released Friday, shows how three Florida cities–Miami, Tampa and Orlando–are among the 10 cities mentioned as having the most staged accident activity in the nation.
“These two reports, taken collectively, should make Florida lawmakers realize the current no-fault law in Florida isn’t working, and any reforms to fix the system are not likely to be substantive,” Reddick said.
The Senate Banking and Insurance Committee heard two hours of testimony Wednesday, mostly from healthcare providers, on Senate Bill 2114, the bill to re-enact the state’s no-fault system.
Reddick took issue with amendments to Senate Bill 2114 that simply extend the sunset deadline to give the changes enacted in 2003 more time to work.
“The Florida no-fault law has been in place 35 years and has been amended no less than a dozen times,” Reddick said. “That fact alone should make lawmakers realize that the law hasn’t worked and needs to be allowed to sunset.”
For further information, contact
Rick Nelson, APR, CAE
(317) 875-5250 Tel
(317) 879-8408 Fax