Contact:

Cliston Brown, (847) 553-3671, cliston.brown@pciaa.net Kristen Bridges, (850) 545-1917, kristen@bascomllc.com

FOR RELEASE ON RECEIPT

August 3, 2012

PCI: Let PIP Law Take Effect Before Drawing Conclusions

TALLAHASSEEDonovan Brown, state government relations counsel for the Property Casualty Insurers Association of America (PCI), has issued the following statement in response to the release by the Office of Insurance Regulation (OIR) of the Pinnacle draft actuarial study on the state's Personal Injury Protection (PIP) system and its expectations for the effects of the new PIP law: From the very beginning, PCI and its member companies have warned of the current and long-term damages resulting from the rampant fraud and abuse in the PIP system. While the 2012 PIP legislation delivered the potential to begin fixing the runaway costs within the system, it is imperative that policymakers, regulators and Florida drivers understand that it must have adequate time to take effect. As with any comprehensive legislative package, there will be implementation processes and other issues that must be addressed. With OIRs release today of Pinnacle's draft actuarial study, we encourage all stakeholders to use the information as a starting point to begin evaluating the PIP legislation passed this year. PCI has some concerns with the studys conclusions and the fact that it is based on a law which does not fully take effect until next year and may be interpreted by a court differently than the Florida legislature intended. However, we believe this is a good start in discussing what the 2012 PIP legislation, when fully in place, could potentially accomplish in reducing fraud. We are optimistic that OIR is looking at companies on an individual basis and will make decisions that will allow the marketplace and competition to flourish. PCI looks forward to working with OIR as the process of implementing the PIP laws goes forward. As the draft actuarial study and eventually the final product are developed, we encourage all interested and impacted parties to continue working together and allow for the new law to properly take effect before making any judgments. PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $180 billion in annual premium, 39.2 percent of the nations property casualty insurance. Member companies write 45.5 percent of the U.S. automobile insurance market, 32.0 percent of the homeowners market, 37.3 percent of the commercial property and liability market, and 40.6 percent of the private workers compensation market. ###