Is PIP reform coming to Florida?

In our last post we discussed legislation tackling bad faith insurance litigation reform. Bad faith insurance litigation is not the only insurance topic to make it into this legislative session. The state insurance commissioner Kevin McCarty believes that this will be the year that lawmakers finally make reforms to Florida’s no-fault auto insurance law.

The no-fault insurance law was intended to remove the need to litigate small insurance claims and to provide all Floridians with some protection in the event of a car accident. Lawmakers believe that the current law allows crime rings to stage accidents with the help of crooked doctors. Lawmakers seem to ignore the fact that many insurers underpay car accident claims, forcing car accident victims to sue for the benefits that they are entitled to.

Claim denials and claim delays are the two main situations in which Miami residents need to obtain an attorney for auto insurance benefits. Many insurers will attempt to deny a claim despite the fact that a car accident victim sustained serious personal injuries in a crash. Another tactic is for insurers to delay the claim in hopes that the car accident victim will go away or become desperate and settle for less.

There are also some insurers who will fail to defend policyholders who are sued after they become involved in an accident. Typically car insurance policies require a policyholder’s insurer to pay for an attorney in these situations. Policyholders can hire experienced insurance litigation attorneys to enforce their rights under their insurance contracts and obtain the compensation that they deserve.

Source: Insurance Journal, “Florida Insurance Commissioner: ‘This Is Year for PIP Reform,” Michael Adams, Feb. 9, 2012

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