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PIP Fraud

August 16th, 2011 by flanews

Personal Injury Protection Insurance claims are soaring and state leaders point to fraud as the reason.

In 2010 there was an 800 million dollar increase in the amount of money insurance companies paid out in PIP claims. PIP, pays 10-thousand dollars to people hurt in car accidents regardless of fault. Insurance Commissioner Kevin McCarty says people are abusing the system that’s meant to help Floridians seriously injured in car wrecks.

“There is a group of people, fraudsters, who have perfected the system of finding the weak points and taking advantage of that,” said McCarty.

Today the governor and state cabinet committed to coming up with fixes to the problem and then asking the legislature to write the changes in a bill for the 2012 legislative session.

Posted in Highways, Insurance, State News | 1 Comment »

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