Florida’s battle against fraud in the no fault auto insurance sector has felt like a losing battle over the last while, as one change to the regulations simply leads to a new form of fraud. There have been anti-fraud provisions made by the legislature in 2002, 2003, and 2007 following a grand jury fraud and abuse report in 2000. Unfortunately, none of these attempts to stop the fraud have made a dent in the cost of personal injury protection. According to the Coalition for Auto-Insurance Reform president, Peter Kinzler, there…
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Florida prepares for the battle against PIP fraud
Residents in Florida have joined with business associations and law enforcement agencies to create the Gear Up Florida Coalition, with the goal of protecting insurance consumers in the state from the skyrocketing costs that are resulting from the increasing instance of fraud to its no-fault law. According to Tammy Perdue, the Florida General Counsel for Associated Industries, they want to bring fraud from car accidents to an end and change the organized systems that are encouraging these criminal behaviors. She explained that it will be critical for legislative action to…
Read MoreFlorida coalition of businesses and residents looks to stop auto insurance fraud
With auto insurance fraud becoming a major concern in Florida, a number of law enforcement agencies, business associations and state resident groups have come together to form the Gear Up Florida coalition. The coalition aims to combat fraud in the state and help protect consumers from the havoc it can cause on their finances. Insurance prices in Florida have been rising due to staged car accidents in recent years. The coalition believes that the primary cause of this lies in the state’s no-fault auto insurance laws. Though insurers often get…
Read MoreFlorida catastrophe fund faces major financial deficit
Florida’s hurricane fund is facing a major financial shortfall, according to Jack Nicholson, chief operating officer of the fund. The fund, which was established in the wake of 1992’s Hurricane Andrew, provides money to insurance companies in order to help those displaced by natural disasters. Nicholson issued a warning to state legislators this week that noted that the fund faces a $3.2 billion deficit and will not be able to offer aid in the event of a major storm for the immediate future. This year, the fund has provided insurers…
Read MoreCoalition for Competitive Insurance Rates oppose new laws for foreign reinsurance companies
Two laws currently before Congress have found opposition from the Coalition for Competitive Insurance Rates, a group of businesses and consumers that rely on low rates stemming from competition in the national insurance market. The legislations in question are H.R. 3157 and S.B. 1693. Both laws impose greater taxes on foreign insurance and reinsurance companies that wish to do business within U.S. borders. The Coalition fears that this will dissuade foreign companies from entering the market, thereby reducing competition and raising insurance prices. Currently, the majority of the reinsurance needed…
Read MoreLloyd’s enters Florida’s reinsurance market on the heels of new law
Lloyd’s of London, one of the world’s leading insurance and reinsurance specialists, is entering Florida’s reinsurance market. The company joins several other reinsurance organizations flocking to the state to take advantage of a new law that reduces capital requirements for reinsurers. The law, first introduced in 2009 but only recently passed, is an attempt to attract more foreign reinsurance companies to do business in the state, thereby reinvigorating the somewhat stagnant market. Because of the law, Lloyd’s has been approved to do business in the state. According to the law,…
Read MoreCitizens Property Insurance rate increase struck down by Florida’s Insurance Commissioner
Florida’s Insurance Commissioner has taken a bold stand against the state-run insurance company Citizens Property Insurance Corp. The insurer has been facing staunch opposition lately for a rate increase that will raise the rates of sinkhole coverage throughout the state by an average of 400%. Commissioner Kevin McCarty has ruled against the rate increase and now demands that the insurer make dramatic changes to their rate proposal. McCarty is keen to see the insurer propose new rates that are friendlier toward consumers. The insurer’s rate increase has been under investigation…
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