A Senate committee voted 10:0 to scrap the state's no-fault personal injury protection (PIP) system on Tuesday, but its chairman said further efforts this session likely depend on what happens in the courts. While the future of PIP in the Sunshine State remains to be seen, it is worth examining whether this would actually solve the problems plaguing Floridians.
PIP was originally implemented as a means of combatting auto insurance fraud. The underlying premise was that an injured party would obtain coverage for medical expenses from his or her own carrier rather than the at-fault party. On paper, this seemingly was a good idea to reduce fraud and litigation expenses. Thus, a number of states adopted the system.
Over the years, PIP became an opportunistic coverage for fraudsters to exploit. Despite many attempts to “fix” Florida's no-fault law, fraud became more prevalent. Complicating matters were the trial lawyers, some of whom found a cottage industry with “PIP demands” and “PIP suits” that lined their pockets while driving up costs for consumers.
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