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51 Ins. Counsel J. 75 (1984)
No-Fault Automobile Insurance: A Success or Failure after Eleven Years

handle is hein.journals/defcon51 and id is 77 raw text is: No-Fault Automobile Insurance NO-FAULT AUTOMOBILE INSURANCE: A SUCCESS OR FAILURE AFTER ELEVEN YEARS? PATRICK F. MARONEY Tallahassee, Florida INTRODUCTION Professors Keeton and O'Connell ushered in the no-fault era with the publi- cation of Basic Protection for the Traffic Victim,' in which they expressed their opinion that the traditional tort system of compensating victims of automobile acci- dents was needlessly expensive, inequit- able, and inefficient.2 Responding to such criticism, Massachusetts enacted the first state no-fault law, effective. January 1, 1971.3 Florida4 and Delaware5 followed with no-fault laws, effective January 1, 1972. Currently, twenty-three states have some form of no-fault legislation.6 One court has enumerated the goals and legislative objectives involved in no-fault to include a lessening of court congestion and a reduction in concomitant court 2R. KEETON & J. O'CONNELL, BASIC PROTEcnON FOR THE TRAFFIC Vicrns (1965). 21d. at 11-75. aMAss. GEN4. LAW. ANN. ch. 90 § 34m; ch. 175, § 113B; ch. 231 § 6d (1975). 4FLA. STAT. §§ 627.730-.7405 (1982 Supp). 5DEL. CODE tit. 21, § 2118 (1974 & Supp 1980). GSee ARK. STAT. ANN. §§ 66-4014 to 66-4021 (1980 & Supp 1981); CoLO. REV. STAT. §§ 10-4-701 to 10- 4-723 (1973 & Supp 1982): CONN. GEN. STAT. ANN. §§ 38-319 to 38-351a (West Supp 1982); DEL. CODE tit. 21, § 2118 (1974 & Supp 1980); FLA. STAT. §§ 627.730-.7405 (1982 Supp); GA. CODE ANN. §§ 56- 3401b to 56-3413b (1977); HAW. REV. STAT. §§ 294-1 to 294-41 (1976 & Supp 1981); KAN. STAT. ANN. §§ 40-3101 to 40-2121 (1981); Ky. REv. STAT. §§ 304.39- 010 to 304.39-340, 304.99-050 (1981 & Supp 1982); MD. ANN. CODE art. 48A §§ 538-546 (1979 & Supp 1982); MASS. GEN. LAws ANN. ch. 90 § 34m; ch. 175; § 113B; ch. 231 § 6d (1975 & Supp 1982-83); MICH. COMp. LAwS ANN. §§ 500.3101-3179 (West Supp 1982-83); MINN. STAT. ANN. §§ 65B.41-.71 (Vest Supp 1982); N.J. STAT. ANN. §§ 39:6A-1 to 39:6A-20 (1973 & Supp 1982-83); N.Y. INs. LAW §§ 600 et seq. (1966 & Supp 1982-83); N.D. CENT. CODE §§ 2641-1 to 26-42-18 (1978 & Supp 1981); OR. REV. STAT. § 748.800-.835 (1981); PA. STAT. ANN. tit. 40, §§ 1009.101-.701 (1971); S.C. CODE §§ 56-11- 10 to 56-11-800 (1976 & Supp 1981); S.D. CODIFIED LAWS §§ 58-23-6 to 58-23-8 (1978) ; TEX. INS. CODE ANN. art. 5.06-3 (1981); UTAH CODE ANN. §§ 31-41-1 to 31-41-14 (1974 & Supp 1981); VA. CODE §§ 38.1- 380.1 to 38.1-380.2 (1981 & Supp 1982). PATRICK F. MARONEY re- ceived his BS. degree from the Florida State University and his J.D. degree from the Univer- sity of Florida College of Law. He is an assistant professor at Florida State University and Co-chair. person of the Florida Bar Committee on Insurance. calendar delays. Other anticipated results were reduced automobile insurance pre- miums and an assurance that acci ent victims would receive funds for medical ex- penses and lost wages, thus avoiding dire financial circumstances and the possible result of increased public relief rolls. Ad- ditionally, no-fault was expected to pre- vent the overpayment of major claims and to replace a system that was slow.7 No-fault insurance laws have been ex- amined in light of their actual results and have been subjected to criticism as failing to meet the goals described above. One commentator described a no-fault act as an experiment in social legislation that has failed.8 Nevada repealed its no-fault legis- lation, effective January 1, 1980, after less than six years of operation. The law was described as providing a vehicle to finance lawsuitsY Such a result is contrary tcd the no-fault goal of reducing litigation. Despite such criticisms, the no-fault con- cept remains valid. The problems ei- countered with no-fault automobile insur- ance laws are the result of deficiencies in the laws enacted in the various jurisdic- MLasky v. State Farm Insurance Co., 296 So2d 9 (Fla 1974). 8L. C. Folzon, Michigan No-Fault: The Rise and Fall of Socialized Negligence, 56 U. DEr. J. UtB. L. 99 (1979). 9The National Underwriter, June 1, 1979, at 4, col. 3. Page 75 ea