PIP/No-Fault Developments: Week Ending May 25
May 25, 2007
Recent developments have occured relating to possible effects of the expiration of Florida’s Motor Vehicle No-Fault laws on October 1, 2007.
While Florida’s Department of Highway Safety and Motor Vehicles has stated that it does not believe Florida law will require any mandatory automobile insurance coverage if No-Fault sunsets, on this same point, State Farm is taking a contrary position, stating that if No-Fault expires, the requirement to purchase property damage liability coverage still exists.
This Firm is in the process of reviewing the No-Fault statutes and drafting a memorandum on the issue. We believe there is a credible argument for mandatory property damage coverage regardless if No-Fault sunsets.
The Miami Herald, in the publication of two editorial opinions, supported an extension of Florida’s No-Fault laws.
One editorial, published on May 23, 2007, states that No-Fault sunsetting will eliminate mandatory coverage completely. The article also calls for a one-year extension of No Fault. The editorial can be viewed by clicking here.
A second Miami Herald editorial, published on May 24, 2007, states that Florida House of Representatives Democrats are encouraging Governor Charlie Crist to include a one-year extension of No-Fault during the upcoming Special Session on property tax relief scheduled to begin June 12, 2007. This editorial can be viewed by clicking here.
A news story also published in The Miami Herald this week, “Will Auto Insurance Become Optional?” reviews the projected consequences of a No-Fault sunset.
Currently, No-Fault issues are not part of the June 12 Special Session agenda.
A list of policy issues associated with the repeal of the No-Fault laws has been compiled by the Florida’s Office of Insurance Regulation, a copy of which is attached for your review.
We will continue to keep you updated as new information becomes available.
Meanwhile, please do not hesitate to contact this office should you have questions or comments regarding this matter.