McCarty Urges PIP Reform
Insurance Commissioner Kevin McCarty called for the Florida legislature to reform this state’s Personal Injury Protection (PIP) auto insurance laws at a media availability this afternoon. According to Commissioner McCarty, if the legislature does not act PIP rates will continue to rise to unsustainable levels, which ultimately would force repeal of the law.
PIP reform is one of the most significant issues making its way through the 2012 legislative session. PIP rates have been increasing as insurers seek adequate revenues to offset what they see as rampant fraud. The market has some similarities to homeowners insurance, where the combination of mitigation discounts, questionable sinkhole claims and other factors have put unpward pressure on rates.
The House and Senate are pursuing differing PIP reform proposals. Thus far, the industry as preferred the House version of the reforms because they are more stringent in limiting non-emergency room services. This issue will continue to be hotly debated over the remaining weeks of the legislative session.