Gov. Bush Urged to Veto Auto No-Fault Insurance Law

The National Association of Mutual Insurance Companies has urged Florida Gov. Jeb Bush to veto a bill that would extend the sunset provision of Florida’s current no-fault auto insurance law to Jan. 1, 2009.

NAMIC Senior State Affairs Manager David Reddick wrote Bush on Tuesday, “that extending the law’s sunset provision to Jan. 1, 2009 will do nothing to help reduce rates for Florida drivers.”

“A March 2006 report prepared by the Insurance Research Council found that PIP claims costs in Florida increased at double-digit rates in the past three years, far outpacing the rate of inflation. These increases are likely to continue if the PIP law is re-enacted through 2009.

“NAMIC also believes the provisions in the current law allow for more than enough time for Florida drivers to adjust to the tort system after having been subjected to the PIP law for the past 35 years.

“For these reasons, NAMIC asks you to please veto Senate Bill 2114 and bring rate relief to Florida drivers,” Reddick concluded.

The IRC report can be read on NAMIC’s website, NAMIC Online at
http://www.ircweb.org/News/20060303.pdf.

Source: National Association of Mutual Insurance Companies