Florida’s no fault law has been re-enacted after Governor Crist signed House Bill 13C on Friday, October 12, 2007. Florida’s Motor Vehicle No Fault Law, which had expired on October 1, 2007, has an effective date of January 1, 2008.

The law ensures that Florida drivers have at least $10,000 worth of health care benefits through personal injury protection insurance (PIP) by January 1st. The new bill, while similar to the old one, also includes measures to protect consumers and reduce fraud by providing maximum allowable fees for medical providers – something critics complained was lacking in the previous version.

According to the Governor’s office, the law requires automobile insurers to notify policyholder who do not already have PIP coverage that they must get it by January 1, 2008.

Additional provisions

The legislation has these additional provisions. It:

• Requires health care providers to demonstrate certain qualifications before they can receive PIP reimbursements.
• Reserves $5,000 worth of benefits for physicians who provide emergency services or inpatient hospital care.
• Streamlines the legal process for disputed claims by requiring that all PIP claims related to a single provider for the same injured person be joined in a single lawsuit.
• Authorizes the Attorney General, in addition to the Office of Insurance Regulation, to take action against insurers who demonstrate a pattern of not paying valid claims.

Interim warnings

Insurance experts have warned drivers that, because the new law doesn’t take effect until January 1, 2008, PIP insurance isn’t technically required until that time, so there is the potential for additional litigation during the three month lapse. However, they say that the risks are minimal.