Posts Tagged ‘Florida legislature’
We read with great interest the Feb. 22 article in the South Florida Sun-Sentinel on insurance fraud. The news story, headlined “High insurance premiums blamed on staged accidents,” provided strong insights into Personal Injury Protection (PIP) fraud, a problem that affects every Florida driver.
We applaud the efforts of Property Casualty Insurers Association of America, the Florida Chamber of Commerce and Associated Industries of Florida, as well as state officials, to reform Florida’s broken no-fault automobile insurance laws. The fraud is so widespread and organized that it is impossible to describe it in a few sound bites.
Certainly, staged auto accidents are a big problem, but the fraud runs much deeper with organized rings of unscrupulous PIP attorneys, store-front clinics, chiropractors, imaging centers and 800-number advertisements promising “big money” to auto accident victims.
Up until now, these bad actors have enjoyed unfettered access to the wallets of Florida drivers. The results have been skyrocketing auto insurance premiums and the demise of several insurers.
What is not talked about is that the vast majority of PIP injury claims involve low-impact accidents with no apparent injuries at the scene. These often result in providers making claims for soft tissue injuries weeks later on behalf of two or three individuals with each of their $10,000 in PIP benefits 100 percent expended.
If an insurance company cries foul and refuses to pay what it considers fraudulent claims, as many as three to four separate lawsuits per individual from each medical provider ensues. That frequently results in more than $100,000 in attorney fees for a single accident.
That is not the picture the Florida Consumer Action Network painted of accident victims being unable to pay for attorneys to fight their insurance companies. More than 90 percent of PIP lawsuits are filed on behalf of clinics and medical providers, not individuals. Those businesses don’t seem to have any trouble finding attorneys to take their cases.
As Property Casualty Insurers spokesperson William Stander stated, creating a state arbitration program for dispute resolution would take literally thousands of questionable cases out of the overwhelmed court system and remove the incentive for committing fraud (attorney’s fees).
It’s time for that program to begin. If you’re a driver fed up with rising insurance premiums, let your Florida representative and senator know that you want relief – and you want it now.
Listen up Florida legislators, especially those of you who grew up or lived in the New York City area. Personal injury protection (PIP) fraud is on the rise and drivers in the Big Apple are carrying the cost. Florida has the same problem and there’s something you can do about it.
An extensive study of more than 4,500 instances in which New Yorkers filed PIP claims tell how badly PIP insurance is being abused. In New York City, 4 out of 10 people who claimed they were injured in an accident said they visited an acupuncturist for treatment. Upstate, only 3 in 50 filed such claims.
For chiropractic treatments, 5 in 10 of those living New York and its suburbs filed claims versus 2 in 10 upstate residents. Overall, 44% of those injured in New York City-area accidents visited 4 or more healthcare providers versus just 14% upstate.
Even factoring in cosmopolitan differences, the PIP numbers don’t add up, according to the Insurance Research Council. The council and state fraud investigators say that organized groups of fraudsters are using minor or fake accidents to run up medical and lost-wage bills that by law can total as much as $50,000 per person per accident.
In Florida, PIP claims are capped at $10,000, but the problem is still the same: People are ripping off the auto insurance system. Even though there is a $10,000 cap for medical benefits, the attorneys fees awarded in Florida PIP cases far exceed that amount and make PIP a very lucrative fraud business.
Medical care providers are milking auto insurance companies with faked injuries, staged accidents and the like. When insurers don’t pay fast enough, the clinics tap plaintiff attorneys who will sue for as little as $1.29.
Who gets stuck with the bill? In New York, not the insurance companies. Drivers in the Bronx paid an average of $754 a year in PIP premiums in 2009, according to the Property Casualty Insurers Association of America. That was more than three times as much as the state as a whole, which averaged just $202.
Wondering how you can help your constituents, Florida legislator? Join the fight against PIP fraud. You’ll be helping your neighbors, the police and the courts. You can even show New Yorkers how it’s done.
What does 2011 hold for efforts to fight personal injury protection (PIP) fraud in Florida?
And Florida residents can help in the PIP fraud clean-up by supporting the Chief Financial Officer and the dedicated investigators and prosecutors of his Division of Insurance Fraud (DIF).
CFO Jeff Atwater recently said he will be seeking tough sentences for perpetrators who try to rip-off the system. Now we get word from the Florida’s director of the division of insurance fraud that a new PIP squad has been added in Tampa to crack down on what’s ranked the worst region in the United States for PIP fraud.
“There is no shortage of criminals who seek to commit fraud at every opportunity,” writes director John Askins in his division’s January 2011 newsletter.” The dedicated law enforcement officers at DIF are determined to do their best to investigate and arrest them.”
The division has also hired a senior attorney in Miami to coordinate efforts and improve results in prosecutions. In addition, the division “is working for legislation that will eliminate loopholes used by accident clinics,” Askins writes in the newsletter. “We are asking for additional dedicated prosecutors to help us send more of these criminals to jail.”
How can Floridians help? By writing urging legislators to vote for legislation that would crack down on the PIP fraud that keeps pushing insurance premiums higher and higher. Legislators should also fund, even in these tough economic times, staffing to chase down and lock up PIP fraudsters.
The auto insurance industry is doing its part in 2011. The International Association of Special Investigation Units, a non-profit organization funded by insurers, is educating insurers on how to spot PIP fraud and helping law enforcement officials with their investigations.
Insurers are putting more than money into the effort to fight PIP fraud. Ohio Farmers Insurance Company has donated a car to DIF that it can use in undercover surveillance along the west coast of the state. The car will help law enforcement officials uncover the PIP fraud rings that are rampant that region.