South Florida Personal Injury Lawyers Blog
Currently, Florida follows the no-fault insurance system, requiring motorists to maintain personal injury protection (PIP) insurance coverage. However, Florida lawmakers proposed Senate Bill 54, which would eliminate the state’s no-fault insurance requirement. The current system allows a claimant’s insurance company to pay the insured’s bills, regardless of their fault. Critics of the no-fault system argue that the current framework evokes many fraudulent claims and the coverage limit is insufficient. On the other hand, critics of the change contend that the new system may leave injury victims in a precarious financial position, as insurance companies will not automatically pay out claims.
The new law would require motorists to carry bodily injury liability coverage, which would allow insurance companies to pay up to $25,000 for collision-related injuries or death or up to $50,000 for crashes involving two or more individuals. The new system would retain the current $10,000 financial responsibility requirement for property damage. However, it modifies the coverage limits for commercial motor vehicle coverage and garage liability. A critical change that may impact injury victims is that the repeal will eliminate the pain and suffering damage limitations.
In many cases, Florida accident victims need to seek compensation outside of the no-fault insurance system because their damages exceed policy limits. The change will have a more considerable impact on bad faith claims against Florida insurance companies. The new framework will include best practices standards for insurance companies to settle disputes. However, the bill also includes the condition precedents an insured must meet before asserting a claim.
The new provisions that will require a third-party insured’s demand include:
- Specific information regarding the details surrounding the loss, the claimant, and the insured.
- Factual and legal basis of the claim.
- Specific details regarding the victim’s injuries, medical treatment, and current and future damages.
- A settlement amount, not to exceed the policy limit.
- A release from the insured from further liability.
- The insured’s statement cannot impose conditions on the settlement besides payment of the demand and the claimant’s ability to take an examination under oath.
Third-party claimants must meet these stringent requirements to recover damages from the insurance company. Claimants must understand that the bill will limit an insurer’s liability for bad faith if the company tenders the policy limit amount within 30 days of receiving the demand.
Pursuing Damages After a Florida Car Accident
If you or someone you love has suffered serious injuries in a Florida car accident, do not hesitate to contact the attorneys at Friedman Rodman Frank & Estrada for assistance. Our attorneys maintain an active practice and keep apprised of all relevant legal changes that may impact Florida accident victims. The trending changes in the law will significantly impact Florida’s personal injury claims, and we remain ready to represent clients during this shift. We handle claims stemming from Florida motor vehicle accidents, premises liability, product liability, and medical malpractice claims. We have nearly 100 years of combined experience successfully representing Florida injury victims. Contact our office at 877-448-8585 to schedule a free initial consultation with an attorney on our team.