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Governor Signs Revamped PIP Back Into Law

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By JEROME R. STOCKFISCH, The Tampa Tribune

Published: October 12, 2007

TALLAHASSEE - Gov. Charlie Crist re-enacted Florida's no-fault insurance law with his signature at a bill-signing ceremony Thursday at the state Capitol.

As of Jan. 1, Florida motorists must once again maintain personal injury protection, or PIP, as part of their auto insurance policies. The PIP provisions expired Oct. 1 after lawmakers, frustrated by a system riddled with fraud, allowed them to sunset.

Technically, Florida reverted to an at-fault system as of Oct. 1, and until Jan. 1, victims of traffic accidents may have to seek damages from the driver at fault. Under PIP, drivers carry $10,000 of medical coverage on themselves that protects them no matter who is at fault.

The PIP system was reinstated during the ongoing special session originally called to balance the state budget.

The new law creates a fee schedule that medical providers must adhere to in an effort to cut back on overbilling. It also restricts the type of providers that can be reimbursed under PIP.

Sen. Bill Posey, R-Rockledge, noted during the bill-signing event that PIP was originally enacted in 1972 to combat frivolous traffic-related lawsuits.

'For 25 years it worked well; for the last 10 it's been corrupted by fraud,' Posey said. 'I think we fixed that.'

For the time between now and Jan. 1, Chief Financial Officer Alex Sink said in a written statement Thursday, 'I encourage every Floridian to contact their insurance agent or company to ensure they have sufficient coverage to protect themselves and their assets.'

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

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