Senate Bill Seeks to Outlaw Radar Detectors!

Senate Bill SB2228, filed by Senator Oelrich of Disctrict 14 (Alachua, Bradford, Gilchrist, Union, Levy, Marion, Putnam and parts of Columbia county) would seek to outlaw any device that detects or interferes with speed-measuring devices used by law enforcement agencies (that's right, folks...radar detectors!). Enforcement would, however, be a secondary action when a driver of a motor vehicle has been detained for another suspected violation (i.e. speeding, DUI, etc.).  The proposed penalty for this violation would be a non-criminal moving violation.

I don't know why everyone thinks radar detectors just promote speeding.  I use it to keep from getting distracted and getting stopped in little towns like Waldo where they'll stop you for 5 mph over the limit! Let's hope it doesn't pass, people, or many of us will have wasted a lot of money.

Florida No-Fault Cost Drivers & Special Interests Tagged

An article published by the National Underwriter on March 6th highlighted a report issued by the Insurance Research Council that revealed the most significant cost drivers in Florida’s controversial No Fault/PIP law.  According to the IRC report, two of the primary drivers of Florida’s abysmal No-Fault environment are the higher costs and increased frequency of medical testing and chiropractic treatment. With only seven months to go before Florida’s No-Fault system is due to sunset (expire), this is critical information.

A study titled by the nonprofit industry research group “Florida Auto Injury Insurance Claim Environment” found that between 2002 and 2005 auto injury economic loss claims rose 18 percent on average, while average claims payments increased 24 percent.

Even though Florida’s No-Fault law, provided under the Personal Injury Protection (PIP) coverage of the automobile policy, was intended to provide immediate compensation for accident victims, regardless of fault and without the necessity of litigation. Unfortunately, the system has never worked as intended, and Florida’s No-Fault system is a more productive breeding ground for fraud than a stagnant pond for mosquitoes in the Mississippi Delta.

According to the National Underwriter, the IRC report cites many of the significant trends that have broken the system, such as rapidly increasing costs, less serious injuries, explosive growth in the utilization of chiropractic services, and extensive attorney involvement. For instance:

• One of the most the specific factors contributing to rising costs is the increased use of magnetic resonance imaging (MRI). Fully 1/3 of all auto accident underwent an MRI in 2005, compared to 26% in 2002.
• The costs of computerized tomography scans, or CT Scans, also rose by 31 percent for the same period.
• Chiropractic services also increased dramatically during this three-year period. Forty-four percent (44%) of all PIP claimants received chiropractic treatment in 2005, compared to 33% in 2002, and the charges from chiropractors also increased by 35%, thereby magnifying the increase. (Interestingly enough, the Florida chiropractic marketplace killed the golden goose of workers’ compensation back in 1993 when the legislature sharply limited their involvement. Now it appears they may be doing it again in Florida No-Fault/PIP. When will they learn?)

So maybe there are just more serious accidents in Florida? “Not so,” says the IRC report. The number of serious auto accidents actually decreased.

The system is set to sunset in October unless state lawmakers act to extend it during the current legislative session. Will it expire? Will the legislature let it? Right now it’s anyone’s guess.  Florida’s No-Fault system hasn’t worked in more than 30 years.  Why anyone would think the system can be fixed after being broken for so long is a mystery.  Many experts suggest that all the law needs to work as intended is a good medical fee schedule and a cap on attorneys’ fees. I doubt it.

The system currently provides little real benefit to the truly injured.  It does, however, support a tremendous “cottage industry” for medical and legal services that makes its fortune off of the automobile insurance industry.

Why not just return to a traditional civil tort system, provide for greater Medical Payments coverages, and let those who cause injury pay for injury?

At least some of the members of Florida’s legislature believe the same.  Here is a summary of the bills that have been filed to date:

• Senate and House bills SB846 and HB359 – Both basically require proof of increased financial responsibility in the form of 100/300/50 insurance limits, or acceptable bond, for bodily injury, death or property damage caused by owners or operators of motor vehicles who previously have been found guilty of DUI.
• Senate and House bills SB984 and HB265 – Both basically require proof of, and raises the minimum amount of financial responsibility for personal automobile liability to 25/50/10, or acceptable bond. Provides additional penalties and fines for those who fail to do so.
• Senate bill SB1450 – Extends the sunset date for Florida’s No-Fault/PIP law until January 1, 2010.

James W. Greer, CPCU
President, PCCP Association
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