Industry groups in Florida are demanding that the legislature to find out about the insurance scam and put an end to it, since it is the prime reason for rising motorists’ insurance premium. William Stander, assistant vice president for Property Casualty Insurance Association is of the opinion that this rise in premium is the direct result of the increasing auto accidents which are ‘staged’ by the scam artists.
William Stander was backed by the Florida Chamber of Commerce and the Associated Industries of Florida, which unanimously called for the reform in Florida’s No-fault insurance program.
Many noted businessmen and industrialists including Teye Reeves, Chamber’s director of business climate and quality of life policy, are of the opinion that PIP fraud can no longer be tolerated and withstood and such scams need to be under check. Because of such staged accidents, Florida’s insurance premium is second highest in the nation.
The average annual liability premium in Florida is $736, which is 56% higher than that of the national mean which is $471. This alone stands testimonial to the fact that if insurance fraud is not checked and controlled, the premium rates could soar high. The estimated increase in insurance premiums due to insurance scam could reach up to $946 million this year, according to the assessment of Insurance Information Institute.
This call for action has made the industry group to think of certain legislative remedies, to be put forth in 2011 session. Some of them are:
Examinations under Oath: The policy holder or the insurance provider can be interviewed regarding the benefits received, under a penalty of perjury for lying. This is recommended by the insurance industry which authorizes the use of examinations under oath by insurers to investigate fraud.
Independent Medical Exams (IME): These are usually used in the course of investigating an insurance claim. Independent medical exams help in determining the extent of physical injuries and the recommended course of treatments. If the insured is a participant in the scam circuit, or the lawyer or PIP clinic is a participant, the insured would never show up to such examinations.
William Stander said that there is an allowance in the court to accept the excuses made for the absence, but the insurance industry demands that this exemption be reformed and absence for IME should be considered unreasonable.
Arbitration:
Arbitration is a faster way to resolve insurance claim disputes without going to the court. Industry recommends that the arbitration alternative is provided by the insurer to the insured, to resolve any disputes.
Since high insurance is a concern to every individual in Florida, many more such sound legislative measures are needed to improve the situation and make insurance affordable.
