FPCA Automotive Division Update and Conference Call

Apr 4, 2007

Members:

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As this Friday is Good Friday, we will hold this week’s conference call tomorrow, April 5, 2007, at 10:00 a.m EST. The call-in information for tomorrow’s call is 1-800-369-1540, code: 34956#. An agenda is attached for your review.

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Also attached for your review, discussion and approval is a copy of the draft bill the Drafting Committee has prepared, which is a revised version of Senate Bill 2626. After the draft bill has been approved by the FPCA Automotive Division, it will be submitted to Senator Alexander for his consideration.

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Please be aware that Senator Alexander’s intent with his revisions to Senate Bill 2626 was to create a type of mandatory no fault coverage for acute care only. Many of these revisions were made at the suggestion of State Farm and their lobbyist has indicated to Colodny Fass, P.A. that State Farm is not wedded to the provisions contained in Senator Alexander’s latest draft bill and is open to suggestions for improvement from the FPCA.

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The 2003 version of Florida’s PIP statute provides: “(1) Effective October 1, 2007, sections 627.730, 627.731, 627.732, 627.733, 627.734, 627.736, 627.737, 627.739, 627.7401, 627.7403, and 627.7405, Florida Statutes, constituting the Florida Motor Vehicle No-Fault Law, are repealed, unless reenacted by the Legislature during the 2006 Regular Session and such reenactment becomes law to take effect for policies issued or renewed on or after October 1, 2006.”

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Accordingly, Senator Alexander’s bill does not allow the old PIP statute to sunset in its entirety. Rather, it has essentially gutted the old PIP statute and established a mandatory no-fault coverage for emergency care coverage instead.

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Next week we will resume our regularly-scheduled calls on Friday mornings.

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Should you have any questions or concerns, please do not hesitate to contact this office.