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Bill Puts Off PIP's Return

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By JEROME R. STOCKFISCH, The Tampa Tribune

Published: October 4, 2007

TALLAHASSEE - Auto accidents occurring in Florida through Feb. 15 may have to be hashed out in court under legislation winding its way through the Capitol.

Lawmakers are working toward reinstatement of the no-fault auto insurance system that expired as state law Monday. Advocates, however, acknowledged that the turnaround from no-fault to an at-fault system and too quickly back to no-fault would overwhelm state regulators charged with reviewing and approving rates.

The legislation originally called for reinstatement of the no-fault system with changes in benefits effective Jan. 15.

'We have to give it a rest,' said state Rep. Ellyn Bogdanoff, R-Fort Lauderdale, the lead House negotiator. She said insurers and the state Office of Insurance Regulation lobbied hard to push back the date.

The Legislature is considering bills that would revive mandatory personal injury protection, or PIP. Until Monday, motorists were required to carry $10,000 worth of personal coverage, which was tapped to pay for the driver's injuries no matter who was at fault in a crash. That had been state law for more than 30 years.

Now, motorists seeking to have medical costs recovered must sue the responsible party for damages.

Bogdanoff and state Sen. Bill Posey, R-Rockledge, are negotiating a delicate bill that was added to the agenda of the current special session by Gov. Charlie Crist. The Legislature has been trying for years to fix the PIP system, which is beset with fraud. That, in turn, has led to higher rates.

Last year's Legislature forced the issue, calling for an Oct. 1 expiration of PIP laws unless a fix could be found. The approach of that expiration date triggered a frenzy of activity at the Capitol and, eventually, retrenchment on the issue of PIP's expiration.

Bogdanoff said at an evening committee hearing that the Office of Insurance Regulation could not handle processing the rate filings of more than 300 auto insurers in the wake of the expiration of no-fault, then process even more if no-fault were to be reinstated by Jan. 15. The insurance regulatory office is already occupied with rate filings by home insurers reacting to new legislation in that arena, she said.

The bill was expected to be amended with the new February target date in committees in both chambers today. Posey could not be reached late Wednesday.

The full House and Senate could take up PIP on Friday. But reinstating the no-fault system is not a done deal, especially in the Senate, which has been cool to the effort.

The bill passed out of the House Insurance Committee on Wednesday with only panel chairman Don Brown, R-DeFuniak Springs, dissenting. House members attempted to amend the bill to put stricter controls on attorney fees, and Brown said the legislation 'is going to perpetuate a system that needs heavy repair.'

Bogdanoff argued successfully against further amending the bill, which she called a 'huge balancing act' with the recalcitrant Senate.

'We're walking on eggshells here,' she said, adding that restrictions on attorney fees would 'blow it up.'

Reporter Jerome R. Stockfisch can be reached at (850) 222-8382 or jstockfisch@tampatrib.com.

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