Name: Mayelin Acevedo
Paper #1 Assignment
Insurance Fraud and PIP
Automobile fraud has increased in the past years costing insurance companies millions of dollars in fraudulent claims. Further, this cost is being passed to consumers through increased insurance premiums. Insurance fraud is committed through staged accidents, fake medical treatment, and billing for services not rendered. PIP (Personal Injury Protection) is the primary target of auto insurance fraud in Florida. PIP was implemented by the legislators to provide immediate care and treatment for those involved in automobile accidents. The State of Florida requires that every motor vehicle driver carry PIP coverage, also known as no-fault coverage. This coverage requires insurance companies to pay up to $10,000.00 in medical bills and loss wages, regardless of fault. Legislators have been attempting to fix the system by filing bills in regards to the issues surrounding PIP, but none seem to achieve positive results. A new bill has just cleared aimed at preventing fraud in Florida’s Personal Injury insurance. The problem with insurance fraud is that the perpetrators seem to stay one step ahead of any legal actions or changes in the law and are able to find a loophole and get away with the crime; but the consumer should not have to pay for their illegal actions. Not enough has being done to correct the ramping (is ramping the right word here? Rampant?) problems of fraud with PIP in Florida. It has been shown that PIP fraud will continue to increase premiums paid by consumers in Florida if not brought under control. There are several methods to combat this fraud: Legislative changes, increased punishment for the perpetrators of fraud and increased consumer awareness; all are necessary to resolve the problem. Thus far, only legislative changes have been proposed. Among other things, this new bill stipulates that every crash victim is to be...
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