State To Study Scrapping Mandatory PIP Coverage
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TALLAHASSEE (CBSMiami/NSF) — The state plans to undertake a study that would determine what would happen if Florida's no-fault auto insurance program is scrapped.
The proposal was requested by the state's Office of Insurance Regulation.
The study is expected to find "the potential impact to Floridians if the personal injury protection coverage requirements were repealed and replaced with varying levels of bodily injury coverage, or if the current requirements to purchase auto insurance were completely repealed."
The no-fault system is commonly referred to as "PIP," which is shorthand for personal-injury protection coverage.
The study will also determine the effect of a 2012 law intended to reduce fraud in the no-fault system.
An actuarial consulting firm is expected to be awarded the contract for the study on May 27, with the study expected to cost up to $125,000. A draft of the study's findings is expected to be completed by Aug. 26, with a final report presented to Gov. Rick Scott, the Senate president and House speaker on Sept. 2.
Under the decades-old no-fault system, motorists are required to carry personal-injury protection coverage that includes $10,000 in medical benefits.
The News Service of Florida contributed to this report.