The Property Casualty Insurers Association of America (PCI) today released the following statement regarding legislation cracking down on personal injury protection (PIP) fraud passing the Florida House Banking & Insurance Subcommittee, its first committee of reference
“We applaud the House Banking and Insurance Subcommittee for recognizing the need to crack down on PIP fraud in Florida. With Florida leading the nation in questionable insurance claims from 2007 to 2009, and four out of the 10 U.S. cities with the highest rate of questionable auto claims being right here in Florida – Tampa, Miami, Orlando and Hialeah, it is imperative that we transform Florida’s no fault system now before it is too late.
“Abuse of Florida’s no fault law has resulted in nearly $1 billion in fraud over the past 3 years. This is the equivalent of a nearly $1 billion fraud tax on Florida’s insurance consumers, which is levied on them through higher premiums. With Florida insurance consumers paying 56 percent more than consumers in other states for automobile insurance premiums, our state’s most honest consumers and businesses are paying the price and they deserve to be better protected. Something must be done to contain the ever-increasing no fault losses and expenses that continue to hinder Florida consumers. We are optimistic that House Bill 119 will continue to move through the Legislature.”