As the leading voice of Florida business, the Florida Chamber of Commerce is committed to securing Florida’s future and improving the state’s business climate through meaningful insurance reform.
Personal Injury Protection (PIP) Fraud
Florida is the No. 1 state in the U.S. for incidents of Personal Injury Protection (PIP) auto insurance fraud and abuse. According to the Florida Office of Insurance Regulation, auto insurance fraud is a billion dollar problem. Consider this: Car crashes are down, Florida’s population remains stable, yet the number of fraudulent staged accidents has increased by a whopping 119% from 2008 to 2010.
Passing comprehensive auto insurance legislation was a top priority during the 2012 Legislative Session and thanks to the leadership of Governor Rick Scott and CFO Jeff Atwater, HB 119 by Rep. Jim Boyd (R-Bradenton) passed the full House and Senate. This legislation addresses three primary cost drivers:
This bill is expected to be signed into law by Governor Rick Scott.
Property Insurance Reform
Although Florida avoided a hurricane landfall for an unprecedented sixth consecutive year in 2011, this string of good luck won’t last indefinitely. Florida is financially unprepared for a major hurricane and our current financing model could be the single biggest threat to our economy.
Significant reforms to the Florida Hurricane Catastrophe Fund (CAT fund) and the government-run Citizens Property Insurance Corporation were top priorities of the Florida Chamber of Commerce for the 2012 Legislative Session.
Legislation by Sen. JD Alexander (R-Lake Wales) and Rep. Bill Hagar (R-Boca Raton) aimed to reduce assessments on homeowner and business policies in the aftermath of a major catastrophe. While this bill would have helped financially prepare Florida to weather a hurricane and stabilize the insurance market it failed to pass out of committee.
Taking steps to return Citizens Property Insurance Corporation to the insurer of last resort, HB 1127 by Rep. Ben Albritton (R-Wauchula) passed the full House and Senate. This legislation helps keep private insurance companies solvent after a hurricane and reduces assessments on customers of private insurers in the event of a hurricane. The bill was signed into law by Governor Rick Scott on April 6, 2012.
Florida Hurricane Catastrophe Fund
Efforts to financially prepare Florida to weather a hurricane by stabilizing Florida’s insurance market failed. This important insurance reform bill would have significantly reduced assessments on businesses and homeowners and help ensure Florida’s Hurricane Catastrophe Fund (CAT Fund) could meet its financial obligations following a catastrophic storm.
The CAT Fund was created to ensure private property insurers can pay their claims following a major storm. However, the CAT Fund cannot meet its own financial obligations and will likely be unable to successfully issue bonding within the 12 months after a hurricane.
The Florida Chamber remains committed to reforming this program and thanks Sen. JD Alexander (R-Lake Wales) and Rep. Bill Hager (R-Boca Raton) for their efforts to right-size Florida’s CAT Fund.
Saying it will save Floridians money, Gov. Rick Scott on Friday signed into law one of his top legislative priorities– a measure backers say will help the state combat fraud and lower costs in the no-fault automobile insurance market.
From shop owners, who know little about Tallahassee politics, to the powerful business lobby that thought up many of carefully crafted tax breaks, the Legislature this year proved a friendly place.
As the clock wound down on the 60-day session late Friday, legislators were able to get an auto insurance reform package to the governor, created a new state university and steered the state universities to attract more science, technology, engineering and math students. Most importantly, senators and representatives were able to patch together a $70 billion fiscal plan
