INDIANAPOLIS, Ind., March 3 – The National Association of Mutual Insurance Companies (NAMIC) is calling on the Florida Legislature to end the no-fault auto insurance system in that state.

The associations senior state advocacy manager David Reddick said, Its clear to us that the no-fault system isnt working in Florida. The average Florida family is paying at least $250 a year more than it should for auto insurance.

Three years ago, NAMIC explained, the Florida Legislature enacted a provision calling for the no-fault law to sunset in 2007 unless lawmakers reenacted it during the 2006 legislative session. Senate Proposed Bill (SPB) 7094 has been introduced and forwarded to the Senate Banking and Insurance Committee. The bill proposes a medical fee schedule for PIP set at a specified percentage above the Medicare fee schedule and eliminates the contingency risk multiplier applied to attorney fee awards.

We know several auto insurers favor the reforms contained in SPB 7094, but once the legislative debate gets under way, the re-enactment provisions are likely to be watered down so much that substantive reform isnt going to be possible, said Reddick. That is why NAMIC simply favors letting the no-fault law sunset next year.