A bill passed Friday targets no-fault insurance fraud and eliminates the system in 2007.
By Associated Press
Published May 28, 2003
TALLAHASSEE - The Legislature approved a bill that cracks down on no-fault auto insurance fraud and automatically abolishes the no-fault system in 2007 unless lawmakers vote to keep it.
Gov. Jeb Bush is expected to sign the bill (SB 32A).
No-fault insurance, which requires drivers to insure themselves for injuries regardless of fault, was adopted in 1971 as a way to reduce lawsuits and provide quick payment of claims, but premiums have increased in recent years due in part to rampant fraud.
The bill enhances criminal penalties for fraud and requires health care providers to send a demand letter to insurance companies before filing suit.
Trial lawyers, insurance companies and medical providers all agreed on the final product. The bill was passed by the House 97-19 Tuesday. The Senate passed the proposal 38-0 last week.
While the insurance industry was unable to get the limit it sought on medical fees, the carriers were happy with the provision abolishing the system unless it is re-enacted in three years.
The antifraud provisions are aimed at practices such as soliciting accident victims to file phony claims, staging fake accidents and charging for medical services that were not needed or were never performed.
"This is a tough antifraud bill and it's what it will take to save this no-fault system," Rep. Kim Berfield, R-Clearwater, said.
The passage of the bill was delayed when the House added an amendment repealing a $15 fee increase on policies bought through managing general agents.
At the Senate's insistence, the amendment was removed and put on another bill (SB 40A) that passed separately.
