To allow auto insurance companies to offer policies with personal injury protection (PIP) coverage below the currently mandated unlimited coverage. A customer could keep the unlimited PIP or choose policies with $250,000 or $500,000 limits. Insurers would have to adjust their premiums to reflect savings realized from these limited policies, and if the savings were less than 40 percent would have to provide justifications for the higher prices.
Medical service providers and hospitals could not charge more than 160 percent of the rates allowed under the federal Medicare program for medical care for crash victims. Limits would also be applied to long term care costs including weekly “attendant care” hours. Permanent impairment and disability lawsuits would be subject to revised procedures, definitions and burden of proof standards. The bill would also permit lawsuits with $20,000 fines for claims that an insurer did not deal "fairly and in good faith" on a claim, let health care providers to sue insurers for certain unpaid claims, and more.
The bill would also expand the duties of a state automobile theft prevention authority to include insurance fraud, overhaul its structure, and authorize higher assessments (taxes) on insurers to pay for this. Finally, its provisions would sunset on July 1, 2023.