PIP Fraud
Insurance companies are taking to the Internet to combat auto insurance fraud in Florida. The Property Casualty Insurers Association of American has launched www.InsuranceFraudUncovered.com, a Web site designed to highlight Florida’s problems with auto personal injury protection — or PIP— fraud and draw attention the legislative movement to address the issue. William Stander, PCI assistant vice president and regional manager for Florida, said it is time the public became aware of the cost of PIP fraud. “Floridians need to know that our state, unfortunately, continues to have the highest number of questionable, or ‘staged’ accidents of any other state in the country,” Stander said, citing statistics that show four of the 10 U.S. cities with the highest rates of questionable claims are Miami, Tampa, Orlando and Hialeah.
Homebuilder Settlement
Homeowners in a southeast Orlando subdivision have settled a class-action lawsuit against The Ryland Group for $1.2 million. The lawsuit claimed the builder of the Newport subdivision did not disclose that the homes were built on or near the Pinecastle Jeep Range, a World War II-era bombing range. Residents said their home values plummeted after live bombs and other munitions were found. The settlement will be divided among 118 homeowners. The Ryland Group did not admit to liability or wrongdoing.
CIA Liquidation
On Jan. 26, Commercial Insurance Alliance was ordered into liquidation. The Department of Financial Services is the receiver. The company consented to the receivership. CIA was licensed as a reciprocal insurer to write commercial multi-peril liability, commercial auto liability and surety policies. The company closed its main Jacksonville office in 2010. It is estimated that CIA had no more than 5,000 policyholders maximum. In August, 2009 the state ordered it to cease writing new or renewal business. At the time of the liquidation, all of the CIA policies had expired and CIA was in a “run-off” mode. Thus, as of the liquidation date, there were no known policyholders. Any remaining policies are cancelled on Jan. 26. The deadline for filing claims is Jan. 26, 2012. Information is available on the Web site, www.MyFloridaCFO.com/Receiver or by calling 1-800-882-3054.
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