|
|
|
 |
|
|||||||||
2002 FINAL STATELEGISLATIVE PROGRAM CONTROVERSIAL ISSUE
SUMMARY: Personal Injury Protection (PIP) insurance for Maryland drivers was created in 1976 as a limited form of "no fault" insurance. Prior to the 1989 legislative session this law mandated that every driver in the state buy a minimum of $2500 worth of PIP insurance to cover medical costs, lost wages and funeral expenses for the policyholder and others in the driver's car, regardless of blame. In 1989 the legislature passed a measure allowing policyholders to select an optional form of PIP that excludes adult residents in the household. Under the provisions of the law, drivers are still required to purchase PIP for all of those living in the household under the age of 16, and for all pedestrians. Advocates of optional PIP believe that the changes passed in 1989 will lower premiums for policyholders who have alternative insurance plans. Supporters of mandatory PIP contend that the elimination of a significant percentage of policyholders under optional PIP will deprive the system of many low-risk drivers. The loss of the revenue from these drivers will cause the premiums of those remaining in the system to skyrocket, leaving many low-income drivers with no choice but to drop their coverage altogether. No additional proposals to restrict PIP have been introduced since 1989, as proponents and foes of the optional approach have been content to monitor premium rates of both those who selected options and those who continued to maintain full PIP coverage. A bill to place limits on insurers' ability to reduce or deny PIP claims passed the House of Delegates but died in the Senate Finance Committee in 2000. A bill to raise the PIP limit to $3500 was filed in the 2001 session but failed. MSBA 2002 POSITION: Monitor any additional changes in the PIP system. SAMPLE LEGISLATION:
|
||||||||||
