Oct 5, 2007 7:55 pm US/Eastern
Lawmakers Pass No-Fault Car Insurance
Bill Goes To The Governor
PIP Will Be Restored But With Anti-Fraud Measures
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TALLAHASSEE (CBS4) ―
The state's no-fault auto insurance system would return Jan. 1 under a bill passed Friday by the legislature.
The Senate unanimously passed the bill to bring the system back after the House had passed it 105-4 earlier in the day. The measure now goes to Gov. Charlie Crist, who is expected to sign it.
The measure restores the requirement that drivers in Florida purchase $10,000 worth of coverage for injuries in accidents, and resumes a no-fault system that protects motorists from being sued in most cases after an accident.
The requirement that drivers have personal injury protection coverage had been in place for about three decades before the law expired Monday. Some large car insurance companies pushed for the system's demise because it has been riddled with fraud, with few controls over what the insurance would cover.
But hospitals and other medical providers have worried that without the requirement, they would be on the hook for millions of dollars in care costs for crash victims who don't have health insurance.
Over the summer and in special session this week, lawmakers devised a proposal to restore the system, but with new anti-fraud controls. Among those are restrictions on what procedures will be covered and who can be reimbursed for care in an effort to preclude claims by fly-by-night clinics.
The House and Senate had differed over whether the measure should also limit fees for lawyers in cases where drivers and their insurer disagree over whether a claim should be paid. The House wanted to limit lawyers' fees; the Senate didn't.
Under the bill (HB 13C), there would be no requirement for drivers to have the coverage between now and Jan. 1. Until then, if there's an accident and any driver involved doesn't have coverage, there will be the possibility of a lawsuit to determine who is at fault to determine who will pay damages.
Many drivers will continue to have the coverage in the interim, even though it won't be required. That coverage could still cover injuries, but they won't have protection from a lawsuit if they're in an accident with a driver without PIP.
(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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