Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
NAMICEperx1fx1eHex19pEducax1feOx1fherEperx1fx1eAppearancesbyDr.Roberx1fDex1fx19efx1eenvicepresidentx13publicpolicyPANElIstx0Floridax0Chamberx0ofx0Commercex0Unitedx0Nationsx0Globalx0RoundtableInsuranceSummitEnvironmentProgrammeFinanceInitiativex0x0Januaryx027x0x0Orlandox0Fla.x0x0Octoberx020x0x0Washingtonx0D.C.PREsENtERx0Nationalx0Councilx0ofx0Insurancex0Legislatorsx0x0Indianax0Certi1edx0Publicx0Accountantsx0x0Societyx0Financialx0ConferenceThird-PartyLitigationLendingPublicpolicyissuesafectingpropertycasualtyinsuranceindustryx0x0Novemberx018x0x0Santax0Fex0N.M.x0x0Decemberx015x0x0Indianapolisx0Ind.ExPERtx0Marylandx0Insurancex0Administrationx0WItNEssCoastalpropertyinsuranceavailabilityandafordabilityx0x0Decemberx013x0x0Baltimorex0Md.InrecentyearstheFloridaLegislaturereactedtoeachsurgeinno-aultpremiumswitheortstoreormthePIPsystem.Amongthecontrolsadoptedduringmajorlegislativebattleswereaworkersx19compensationeescheduleorcertainmedicallynecessaryproceduresamedicaleescheduleorsomeprovidersandmoreundingoranti-raudeorts.Morestringentchangesweredeeatedaswasa2011eortbysomeFloridalegislatorstomakeurtherchangesincludingincreasedpenaltiesormedicalproviderswhoknowinglysubmitalseandraudulentapplicationsorclinicsthattreatcrashvictims.Themostrecenteortaileddespitearun-upoPIPpurepremiumcoststhecostotheselossestotheinsurerrom100intheourthquartero2008toapproximately150intheourthquartero2010.ForalloitseortstheFloridaLegislaturehasalwaysseemedastepbehindtryingtocombatthelatesthealthcaretactics.TheresultovertimehasbeenrunawayincreasesinPIPcosts.OurIssueBrieshowedthatbetween1995and2003PIPpurepremiuminFloridaroseanaverageo6.73percentnearlytwicethe3.51percentrateotheConsumerPriceIndexx13MedicalInfationIndexandthatbetween1997and2007theaveragetotalpaymentrose70percentversusanincreaseo50percentintheCPIx13MedicalInfationIndex.Fromtheourthquartero2008throughthex1rstquartero2010PIPcostsrose40percentandtheInsuranceResearchCouncilestimatestheincreasewillbe50percentmeasuredtotheourthquartero2010.Theoriginalno-aultmodelenvisionedax1cverbalx1dordescriptivethresholdasanessentialcomponentoagoodno-aultlaw.Therationalewasthatathresholdthatpermittedsuitsorpainandsueringonlyincasesobothx1cseriousx1dandx1cpermanentx1dinjurywouldeliminatemostlawsuitsthusosettingthecostsoPIPbenex1ts.Itwouldalsomakesurethatpainandsueringdamageswouldbeavailableonlytopeopleinthegreatestneed.HowevertheFloridalawailedtocombinethetermsx1cseriousx1dandx1cpermanentx1dtherebyleavingenoughwiggleroomorlawyerstoargueandjuriestox1ndthatrelativelyminorinjuriescrossedthethreshold.NAMICx19sIssueBrieoeredFloridalawmakerstwospecix1crecommendationsorretainingthecompensationbenex1tsono-aultwhileloweringpremiumsdramaticallybyreducingtheexcessivecostscausedbyPIPandthresholdabuses.Theserecommendationsweretox0Makex0thex0PIPx0systemx0identicalx0tox0thex0insuredx19sx0healthinsurance.TheRANDx1ndingsandthedatasuggesttherewouldbesignix1cantsavingsbyestablishinghealthprimacyi.e.havinghealthinsurerspayorlossesinautoaccidentshavinghealthprimacywithsubrogationagainstPIPbenex1tsandapplyingtheinsuredx19shealthinsuranceconstraintstoPIPclaims.x0Givex0motoristsx0thex0optionx0tox0limitx0suitsx0forx0painx0andx0sueringbeyondexistinglawinreturnorlowerpremiums.ForFloridatheestimatedsavingswouldhavebeen4.11billionperyearialldriverselectedthetighterthresholdoptionthesecondhighestoanystatewithanaveragepervehiclesavingso328.ThesetwoimmediatereormswouldallowFloridaconsumerstosavebillionsodollarsonthecostoinsurance.AstheNAMICIssueBriestateditisaquestionowhetherwhenamiliesaresqueezedbygovernmentsx19eortstoreinindex1citsanddebtlegislatorsseeadierentpoliticalcalculusthatwillenablethemtodeytheplayersinvestedinthepresentwasteulsystemandpermitcitizenstotakeadvantageoopportunitiestohelposettheneweconomicburdens.NAMIC2011TheYearinReview19