NEW FLORIDA (PIP) NO FAULT AUTO INSURANCE LAW
On October 11, 2007, Governor Charlie Crist signed into law effective January 1, 2008 the new Florida No Fault Auto Insurance bill, (House Bill 13C). The original No Fault Law expired October 1, 2007. Therefore, all policyholders whose automobile policies were set to expire between between October 1, 2007 and January 1, 2008 should call their insurance agents to obtain interim coverage or they will have no coverage at all until January 1, 2008. The only mandatory coverage during this interim period is property damage liability coverage.
These individuals should also know that if they are in an accident between October 1, 2007 and January 1, 2008 and are at fault, and the other driver, passenger or pedestrian who is injured does not have their own PIP coverage, they can be sued for everything including pain, suffering, medical bills and loss of earnings.They should therefore purchase adequate bodily injury liability coverage to protect themselves.
These are the key provisions under the new law effective January 1, 2008:
1. PIP will pay 80% of all reasonable and necessary medical expenses up to the $10,000.00 policy limit. This is the same as the old law.
2. A new fee schedule for medical bills limits doctor's reimbursement to 200% of the Medicare rates and the emergency room doctors to 80% of their usual and customary charges.
3. The new law will reserve $5,000 for emergency room doctors and inpatient hospital physicians.
4. The policy will pay 60% of disability benefits, as before, for any loss of gross income and earning capacity from inability to work.
5. It will also pay 100% of reasonable replacement service such as child care, housekeeping and yard work.
6. It will also pay a death benefit of $5,000 per individual, or the remainder of unused PIP benefits, whichever is less.
Liability Lawsuits
In order to be allowed to sue for pain and suffering for injuries resulting from an automobile accident, as before, you must have either of the following:
1. Significant and permanent loss of an important bodily function.
2. Permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement.
3. Significant and permanent scarring or disfigurement.
4. Death.
These individuals should also know that if they are in an accident between October 1, 2007 and January 1, 2008 and are at fault, and the other driver, passenger or pedestrian who is injured does not have their own PIP coverage, they can be sued for everything including pain, suffering, medical bills and loss of earnings.They should therefore purchase adequate bodily injury liability coverage to protect themselves.
These are the key provisions under the new law effective January 1, 2008:
1. PIP will pay 80% of all reasonable and necessary medical expenses up to the $10,000.00 policy limit. This is the same as the old law.
2. A new fee schedule for medical bills limits doctor's reimbursement to 200% of the Medicare rates and the emergency room doctors to 80% of their usual and customary charges.
3. The new law will reserve $5,000 for emergency room doctors and inpatient hospital physicians.
4. The policy will pay 60% of disability benefits, as before, for any loss of gross income and earning capacity from inability to work.
5. It will also pay 100% of reasonable replacement service such as child care, housekeeping and yard work.
6. It will also pay a death benefit of $5,000 per individual, or the remainder of unused PIP benefits, whichever is less.
Liability Lawsuits
In order to be allowed to sue for pain and suffering for injuries resulting from an automobile accident, as before, you must have either of the following:
1. Significant and permanent loss of an important bodily function.
2. Permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement.
3. Significant and permanent scarring or disfigurement.
4. Death.
