Editor’s Note: Florida PIP, no-fault, rescue only temporary until 2007

The insurance industry was on pins-and-needles in early May when the Florida Legislature passed SB 2114 and extended when the state’s no-fault auto insurance law would sunset—but then the bill went onto the desk of Gov. Jeb Bush, who came to the rescue and vetoed the bill.

Everyone was afraid the governor, now in the final months of his final term, wouldn’t do anything to rock the Legislature’s boat. It was amazing to see the governor take such a positive stand about such a controversial issue. SB 2114 had major support, passing the Senate 38 to 0, and the House on an 118 to 1 vote. The governor’s veto, therefore, was a gutsy decision, and one that must have given him a few sleepless nights, as he realized his decision upset a lot of senators and representatives.

Numerous state and national insurance industry groups had for months been urging Florida’s legislators to either amend SB 2114, or let it sunset Oct. 1, 2007. The Legislature ignored such pleas.

Spokesmen for these same industry groups contended the legislation passed unchanged, because the focus was on hurricane legislation. SB 2214 passed because it was rubber-stamped without proper discussion or needed amendments.

The governor, in fact, said he vetoed the bill because its “safeguards against fraud are too few and too timid.”

On the front burner in 2007

The governor’s veto doesn’t mean PIP in Florida is dead, it just means the Legislature will consider it again in 2007—and the topic will be placed in a prominent position on the agenda. During spring 2007 sessions the Legislature is sure to modify the bill, strengthen it and pass it on to the new governor to pass. It’s very unlikely they will choose to let Gov. Bush’s veto stand and let it sunset.

I remember extensive discussions during the late 1960s and early 1970s, and media blitzes supporting PIP and no-fault measures, when everyone was sure that implementing the system would solve all of Florida’s auto insurance problems.

The legislation was implemented in 1971, and in the ensuing 35 years has been amended more than 50 times. It’s time to stop wasting our legislatos’ time and acknowledge that PIP and no-fault didn’t work. Legislators should revive and rewrite tort-based legislation and stop beating that dead horse.

In numerous meetings I have recently attended, it has been pointed out that auto insurance is a major insurance industry profit center. It’s up to the insurance industry to gear-up now, initiate grass-roots efforts to contact legislators and voice its opinion on this issue. Gov. Bush has in effect challenged the state’s legislators to put PIP legislation on the front burner in 2007—and at the same time issued a silent challenge to the insurance industry to make their opinions, pro and con, about the legislation heard now.

In 2007, when the Legislature meets, there will be a new governor in the mansion, and possibly even a new party in power—so there are major concerns over, given similar circumstances, would a new governor have the strength to veto the same legislation? Probably not!

Topics Florida Legislation Market