No-fault: Back from the dead

So, the Legislature managed to pass something after all about no-fault auto insurance in Florida. No-fault insurance provides automatic coverage for personal injury in an auto wreck, no matter who is to blame.

Florida's no-fault law, which expired automatically on Oct. 1, will pick up again on Jan. 1. There will be a three-month break in the requirement for coverage, because insurance companies and regulators said they had been planning for the Oct. 1 expiration and couldn't throw it into reverse on a dime.

The Legislature did a little bit more than just renew the old system, which was criticized for allowing too much fraud and overuse. There are some new cost controls for medical providers and a few more rules. On the other hand, the law doesn't put any different limits on lawyers or legal fees.

A lot of credit goes to state Sen. Bill Posey, R-Rockledge, and state Rep. Ellyn Bogdanoff, R-Fort Lauderdale, who led the efforts in their respective chambers to get something passed. But it took a lot of effort from a lot of other people too.

A friend asks: Well, do you take back any of your criticism of last week that the Legislature is institutionally weak?  Nah. Waiting for years to do something, and then doing it only after the law had actually expired, created an artificial crisis. Maybe that's the only way to get anything passed. It still would be good to see a more systematic re-assessment of no-fault, especially on the question of cost controls.

Footnote: This was a pretty major defeat for State Farm, the state's biggest insurer, which had already filed and announced to its policy-holders a 16-percent rate decrease, anticipating the end of no-fault. Hard to gripe about the Wicked, Powerful Insurance Lobby if this keeps up...

Comments

[Clinton Tyre]

I'm glad I will not be driving around with a Bulls Eye on my bumper after January 1. The real credit goes to the hospitals for keeping this issue alive. State Farm and its cast of characters and their front group spent millions and lost. I guess there is some justice in the world. Thank you hospitals, thank you Sen. Posey, thank you Rep. Bogdanof and thank you Charlie for adding no-fault to the session.

Oh, and Howard, thanks for the wet lettuce piece.

[Sandy]

I have State Farm (22 yrs.) My agent out of the "blue" calls me to "set up" an appointment with her to "talk"....I am thinking if I do not purchase more products from her she will cancel my policy. I feel co-herced into this by State Farm, who ever said Mafia isn't alive and well?