AIA Pleased with Fla. Senate Committee Vote on No-Fault Reform

April 7, 2003

The Florida Senate’s Banking & Insurance Committee gave its approval to no-fault legislation containing many reforms advocated by the American Insurance Association (AIA).

The Motor Vehicle Insurance Affordability Act (SB 1202) addresses many of the problems with fraud, litigation and over-utilization of services. Specific reforms include: tougher penalties for fraud, regulation of health care clinics, establishment of a medical fee schedule and utilization guidelines for medical providers, required mediation, and litigation reforms.

“The Florida no-fault system is under tremendous pressure, as the continued abuse of personal injury protection (PIP) coverage is taking a toll on both the cost and availability of auto insurance,” said Cecil Pearce, AIA vice president, southeast region. “Nothing less than a complete overhaul of the no-fault law – as evidenced by the Senate legislation — is necessary to restore the system to what it was originally intended to do: ensure prompt payment of motor vehicle crash-related medical expenses without the need to prove fault and minimize disputes and litigation over fault and injuries, while maintaining affordable premiums,” Pearce concluded.

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