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Auto Insurance Fraud
In 2012, changes were made to Florida’s No-Fault Auto insurance law, also known as Personal Injury Protection (PIP). Those changes were set to launch in January 2013, yet the law barely left the parking lot.
In March, a group of medical providers affected by the way the new law paid out benefits filed a court injunction to block it. In October, Florida’s First District Court of Appeals reversed the injunction, and the changes finally got ignition. The medical providers countered by requesting a rehearing, which was turned down by the appeals court this week.
Want to know who to blame for rising auto insurance rates? I can give you names. Actually, the Florida Dept. of Insurance Fraud can give you names—of the arrests made in just one month of those who make a living by filing fraudulent insurance claims.
If you wonder why insurance fraud seems to be rampant in Florida, it could be because it’s organized—as in “organized crime.” This is no secret. If you look at The PIP Source produced by the state Division of Insurance Fraud, you’ll see many arrests for auto insurance fraud involve the same clinic, family members or occur on the same day. The National Insurance Crime Bureau (NICB) gives Florida its #1 ranking for having the most questionable claims, which are claims that raise red flags.
Florida’s no-fault auto insurance law was reformed, and it brings changes in the way those injured in a car crash will seek medical treatment. But nothing changes for you until your auto insurance policy renews.
While the changes become effective on January 1, 2013, they won’t start on that day for you unless you get a brand new insurance policy at the first of the year. The conditions outlined in your current auto insurance policy stay in force until your policy renews.
How do you calculate actual results from something that hasn’t actually happened? Well, you can’t. But that didn’t stop Florida legislators from demanding that it be done. Auto insurance companies had to submit rate filings data to regulators to demonstrate cost savings from auto insurance reforms that don’t start for three more months. Hey, this is Florida – and calendars trump calculators.