Gov. Scott addresses insurance industry summit

The just-passed personal injury protection reform measure was the hot topic as Governor Scott addressed the State of the Florida Insurance Market Summit in Amelia Island.

"There is absolutely a billion-dollar tax on Florida consumers who purchase automobile insurance," says Charles Grimsley, president of the Florida Property and Casualty Association.

Under the reform, the full $10,000 PIP medical benefit will only be available if it's determined that the injuries constitute an "emergency medical condition" -- otherwise, the benefit is capped at $2,500.

Florida leads the nation in staged crashes and fraudulent insurance claims, with PIP costs rising by $1.4-billion since 2008.

Grimsley says PIP reform is only the first step in combatting insurance fraud.

"The fraudsters are not going away," he says.  "They're going to look at the law (and) try to find loopholes."

Opponents, including the Florida Consumer Action Network, say the reforms will do little to combat the widespread fraud and will only line the pockets of the big insurance companies.

Grimsley says that's not the goal of the reforms.

"We don't want to have to pay fraudulent claims and then pass that cost onto consumers in the form of higher premiums," he says.

The final bill was a compromise that barely passed in the state Senate.

The Senate had sought a guaranteed 25-percent PIP rate reduction but instead settled for a non-guaranteed ten-percent reduction.