Issue:  2006-03-14

NAMIC Cites Reports to Show No-Fault Failures

♦ Florida

INDIANAPOLIS, Ind., March 14 – The National Association of Mutual Insurance Companies (NAMIC) is continuing its push to allow Floridas no-fault auto insurance law to sunset. This time, NAMIC is citing reports recently released by two insurance research organizations to underscore the argument that Floridas current no-fault auto insurance law is not working and should be allowed to sunset, according to NAMIC senior state affairs manager David Reddick.

Reddick said that the reports released by the Insurance Research Council (IRC) and the National Insurance Crime Bureau (NICB) help to bring into clear light the problems that exist in Floridas current law. Several NAMIC member companies doing business in Florida favor letting the law sunset in 2007 as is currently contemplated in the law.

The IRC report finds that Personal Injury Protection (PIP) claims costs in Florida increased at double-digit rates in the past three years, far outpacing the rate of inflation, according to Reddick. He added that the 47-page IRC report also notes that as claim costs increased, the seriousness of PIP claims declined.

Meanwhile, Reddick said the NICB report shows how three Florida cities " Miami, Tampa and Orlando " are among the 10 cities mentioned as having the most staged accident activity in the nation.

These two reports, taken collectively, should make Florida lawmakers realize the current no-fault law in Florida isnt working, and any reforms to fix the system are not likely to be substantive, Reddick said.

He concluded, The Florida no-fault law has been in place 35 years and has been amended no less than a dozen times. That fact alone should make lawmakers realize that the law hasnt worked and needs to be allowed to sunset.

Information about the IRC report can be obtained at www.ircweb.org; information on the NICB is available at www.nicb.org.

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