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The Senate Banking and Insurance Committee passed a bill this week targeting fraud in Florida's automotive personal injury protection (PIP) insurance industry.
Senate Bill 1930, sponsored by Sen. Ellyn Bogdanoff, R-Fort Lauderdale, provides consumer protection against staged auto accidents. It includes provisions that crack down on scams, and it offers tools to help law enforcement officers fight motor vehicle PIP fraud at the scene of the crime.
Sen. Garrett Richter, R-Naples, chairs the committee and supported the measure along with Sen. President pro-tempore Mike Bennett, R-Bradenton. Sen. Mike Fasano, R-New Port Richey voted against the bill in the 7-4 vote.
“We see it in many forms, including staged car wrecks or bogus medical claims,” says Bogdanoff in a press release. “Swindlers play the industry like a game. Floridians should not be forced to pay higher premiums due to these unscrupulous individuals taking advantage of no-fault auto coverage.”
The Senate measure is a companion to House Bill 1411, sponsored by Rep. Jim Boyd, R-Bradenton. It has two more committee stops in the lower chamber.
SB 1930 revises the Florida Motor Vehicle No-Fault Law to help eliminate fraud up front. The bill takes the following actions:
- For accidents in which a passenger complains of pain or discomfort, the bill requires law enforcement to list the names and addresses of all passengers involved in a crash using Florida's “Long Form” traffic crash report.
- Establishes the Fight Auto Fraud Fund, a direct-support organization to assist with the prosecution, investigation and prevention of motor vehicle insurance fraud.
- Requires an insurance fraud notice for medical providers who knowingly submit bogus applications for clinics that treat auto crash victims. The bill requires disclosure of the patient log in readable language within 30 days of receiving a written request from the insurer.
- Eliminates the ability of any claimant who knowingly submits a false or misleading claim to receive any PIP payments.
- Provides insurers with more time to investigate suspicious claims and authorizes them to conduct an on-site physical examination of the patient's treatment facility.
“This bill combines a number of components suggested by consumer groups to help push forward protective measures and eliminate lawsuits resulting from fraud,” adds Bogdanoff. “PIP was originally designed to keep the legal system out of the process and help people obtain their benefits as fast as possible. With this bill, we can help eliminate costs that increase our insurance premiums.”
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