Fla. Senate Committee Passes No-Fault Measure Backed by AIA

April 9, 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).

According to the 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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