Politics

PIP deal survives political tumult

It's off. Then on. But the real test to revive no-fault insurance may come today.

By JENNIFER LIBERTO, Times Staff Writer
Published October 5, 2007

Various Tallahassee lobbyists for the medical and insurance industries fill the Senate committee meeting room in the Knott building at the State Capitol to listen to members of the Florida Senate discuss the PIP issue.
	[Scott Keeler | Times]

TALLAHASSEE -- The Legislature is poised to revive no-fault laws that expired on Monday, saving a deal that was nearly derailed late Thursday over a last-minute disagreement over limiting attorney fees.

Earlier on Thursday a House committee decided to cap how much attorneys can make, in spite of being told such limits are the one thing that the Senate won't stand for in legislation to re-enact mandatory personal injury protection (PIP). State law no longer requires drivers to carry PIP, which covers $10,000 worth of injuries no matter who is at fault.

Gov. Charlie Crist called the special session of the Legislature to revive no-fault auto insurance laws, as lawmakers also vote to cut $1-billion from the state budget.

The controversial provisions would have capped attorney fees, a move favored by many House Republicans. But a deal negotiated by Rep. Ellyn Bogdanoff, R-Fort Lauderdale, and Sen. Bill Posey, R-Rockledge, before the special session specifically excluded that contentious provision.

After a House committee voted along party lines Thursday to cap attorney fees, Posey said the deal was off. Now, the House will move to strip the cap on attorney fees off the bill to salvage the deal, Bogdanoff said.

"The message they gave me today was to give it another shot. Go back and try it again," Bogdanoff said. "I did. And it didn't work. We simply don't have support for that in the Senate."

Posey has said all summer that the Senate would not accept caps on attorneys fees.

He said that if laws cap what consumers can pay their attorneys, but don't cap what insurers can pay to fight insurance claims, then it creates an unequal playing field.

"That is not consumer-friendly," Posey said. "The guy who pays the premium, you give him a peashooter and you give the other guy an army tank? That's not justice."

Both the House and the Senate are scheduled to take up their auto insurance bills in session this morning. The bills are nearly identical, except for the caps.

Minutes after the House committee inserted the attorney fee caps, Rep. Jack Seiler, D-Wilton Manors, filed a measure to strip the fees caps from the bill.

"We had like 70 votes to take off attorneys' fees; I think they knew it was falling apart," Seiler said.

Also, Bogdanoff and Seiler said the legislation would include a new start date for PIP, but they couldn't say exactly when the new start date would be late Thursday night.

Currently, both bills include a start date of Feb. 15 for the new "reformed" PIP. However, several senators said Thursday that they would prefer that the old no-fault system get extended immediately as a bridge until the new law would take effect.

Office of Insurance Regulation chief of staff Dave Foy told lawmakers that insurance regulators could handle an extension of the old no-fault system. But they need more time to implement the new "reformed" no-fault system to process about 300 insurance filings.

Gov. Charlie Crist said Thursday that he would prefer enacting PIP "sooner than later," but he pointed out that many consumers who have auto insurance haven't yet dropped their PIP coverage.

"I don't think it's going to be a big deal," he said.

FAST FACTS: Insurance checklist

With the future of PIP in doubt, consumers need to make sure they are properly protected.

1. Determine your regular renewal date.
2. If your renewal date is soon, contact your insurance agent to discuss coverage options.
3. If you choose to drop personal injury coverage, make sure your medical insurance covers you and your passengers.
4. Please drive carefully.

[Last modified October 5, 2007, 01:54:46]