Florida Investigating Massive PIP Fraud in Dade County

By | January 8, 2012

  • January 9, 2012 at 2:07 pm
    FLagent/insured says:
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    Do away with PIP. Most if not all insurance companies offer medical payments and that should be enough.

    • January 9, 2012 at 5:03 pm
      Little Frog says:
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      With tort-right thresholds, bad faith entrapments and fraud so expensive to prove; it really is more cost and aggrevation than it’s worth. But it seems like, if the carrier’s lobby really wanted it gone; it would be. I think they figure that it’s just cheaper and easier to whack the policyholders for cost plus profit and occasionally throw a few of the bad actors in jail.

  • January 9, 2012 at 3:29 pm
    temblor says:
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    Better still, do away with personal injury attorneys. They are the ones behind the massive fraud. Years ago they lobbied to mandate the insurers must pay within 30 days, not nearly enough time to adequately investigate an accident. Thus the insurers are simply reduced to cutting checks whenever they get an attorney’s letter about bills. It’s a gold mine for the attorneys, who get fat fees for nothing, and the clinics who get fat fees for nothing.

    Every attempt at reforming PIP or reining in the fraud have been met by massive industry and personal injury attorney lobbying claiming any such restrictions impinge on the “rights” of the injured.

    It’s been known for years this was just a fraudulent racket but the politicians have never had the guts to do anything about it, preferring instead that the bills just be passed on to the insureds.

    No other state in the country has such high PIP premiums (the same thing went on with WC until about 10 years ago when business groups finally forced the legislature to reform it and get the lawyers out of the process. WC premiums are now 1/3 of what they used to be.)

  • January 9, 2012 at 3:58 pm
    Chris says:
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    How about we make the cost of getting caught so high that nobody sees the reward to be worth the risk. Long prison terms and stiff fines can go a long way in deterring behavior. Much of this fraud is being set up by eastern european organized crime operations. Send the perps back to their country of origin too.

  • January 10, 2012 at 1:22 pm
    FL Resident says:
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    The problem is not the insurance companies, the problem is not the personal injury lawyers….the problem is the fraudulent medical providers & therapy clinics that are making the false insurance claims. More damage would be done if FL did away with PIP coverage. If a person is involved in an accident & it wasnt their fault & the person who hit them does not have any coverage, who pays for the medical bills? God forbid it be a bad accident with serious injuries, and the bills amount to over $10,000? The person who is injured is SOL. The coverage is available for a good reason. Look at the doctors making the claims, thats where the trouble lies.

    • January 11, 2012 at 8:58 am
      FLagent/insured says:
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      Listen there are medical payments that can be purchased on all auto policies. It doesnt matter who is at fault and if you’re that worried about it, then purchase uninsured motorist coverage (which everyone should have anyway). The insurance companies cant police everybody and I disagree with you that its the medical providers fault alone, attorney’s are in on the act too. Do away with it and then there is no coverage to fraud. As the poster said above, as long as the insurance companies can pass the cost of fraud back to us in the form of increasing premium, then they will do it. PIP serves no purpose, purchase med pay and um if you are that concerned oh then there is health insurance to fall back on too. If a person is not responsible enough to purchase these coverages then there is nothing we can do for them.

    • January 11, 2012 at 10:50 am
      Hillsborough agent says:
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      What makes you think that the personal injury attorneys aren’t working with the fraudulent medical providers and therapy clinics???



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