INDIANAPOLIS (Oct. 11, 2007) – Despite concerns about Florida’s just-expired no-fault auto insurance law, the system will go back into effect next year. Gov. Charlie Crist today is signing legislation passed during a special legislative session to re-enact the controversial law as of Jan. 1.
“While insurance companies will, of course, do everything to make sure they are in compliance with the changes, we remain concerned the new legislation may not solve the problems that have plagued Florida for years,” said Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC). “Fraud, waste, and abuse in the state’s auto insurance system were rampant under the law that expired Oct. 1.”
The issue has been hotly debated since the 2006 regular legislative session. NAMIC spoke out against Florida’s “broken” no-fault auto insurance system during the 2006 and 2007 sessions and joined Floridians for Lower Insurance Costs, a Tallahassee-based coalition of concerned citizens, businesses, and taxpayers who strongly supported the sunset.
The legislation, CS/HB13, includes the following provisions:
With Florida’s previous no-fault law expiring earlier this month, companies had already taken steps to provide notice to policyholders and make appropriate coverage and rating changes in anticipation of the sunset.
“We are way past an eleventh-hour decision,” Reynolds said. “This is more like a thirteenth-hour decision, and it has created confusion for customers and additional expense, programming, and resource issues for companies.”
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Posted: Thursday, October 11, 2007 12:00:00 AM. Modified: Thursday, October 11, 2007 10:40:38 AM.
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