House Panel Clears PIP Fraud Bill
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TALLAHASSEE (CBSMiami/AP) – A bill designed to cut back at auto insurance fraud has cleared a House panel.
On Wednesday, in a party line vote of 10-5, the Civil Justice Subcommittee approved the bill (CS/HB 119) which addresses the state’s mandatory personal injury protection (PIP) coverage. The proposed law requires those hurt in a wreck to be seen in a hospital emergency room or hospital-owned walk-in clinic for PIP coverage to kick in.
PIP insurance pays up to $10,000 to cover medical bills and lost wages after an accident. It doesn’t matter who caused the wreck. All Florida drivers must carry such “no-fault” insurance.
But those taking advantage of the coverage have turned Florida into the top state for staged accidents. PIP fraud in the state is estimated to reach $1 billion this year.
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