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National Insurance Crime Bureau
Scenario: A friend of a friend says he has a way for you to make a couple of hundred bucks, plus get new kitchen cabinets, upgrade your plumbing and get a new tile floor at the same time. Something like that must have been said to the dozen Miami homeowners who took the bait and wished they hadn’t after they got arrested for insurance fraud last week.
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.
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.