Draft Repeal of Mandatory PIP, Bodily Injury Implementation Bill Issued by Florida Senate Committee on Banking and Insurance
Apr 1, 2013
Draft language of a bill that would repeal the Florida Motor Vehicle No-Fault Law and instead mandate bodily injury liability coverage of at least $25,000/$50,000, effective January 1, 2014 has been issued by the Florida Senate Committee on Banking and Insurance.
A summary of the proposed legislation follows below. A copy of the proposed bill is attached.
Should you have any questions or comments, please contact Colodny Fass& Webb.
Summary of An Act Relating to Motor Vehicle Liability Insurance: Repeal of Mandatory PIP and Implementation of Mandatory Bodily Injury
Section 1: Amends s. 324.011, F.S.-Purpose of Chapter, Florida Statutes
Changes the legislative intent from requiring that an operator of a motor vehicle meet the operation provisions provided for in s. 324.051 (2), F.S., to requiring that the owner or operator of a motor vehicle establish and maintain the ability to respond in damages arising out of the use of a motor vehicle. The current effect of the section is unchanged
Section 2: Amends Subsections (1) and (7) of s. 324.021, F.S.-Definitions; minimum insurance required
Removes the exemption from the term “motor vehicle” for vehicles defined in s. 627.732(3), F.S., including mobile homes or any motor vehicles that are used in mass transit, other than public school transportation, and designed to transport more than five passengers exclusive of the operator of the motor vehicle; and that are owned by a municipality, a transit authority, or a political subdivision of the state.
Increases the amount of coverage a driver must maintain in, or to respond to liability for damages for bodily injury or death for one person in one crash from $10,000 to $25,000.
Increases the amount of coverage a driver must maintain in, or to respond to liability for damages for bodily injury or death for two or more persons in one crash from $20,000 to $50,000.
Requires maintenance of coverage in the amount of $10,000 for damage or destruction of the property of others.
Section 3: Amends s. 324.022, F.S.-Financial responsibility requirements
Requires every owner or operator of a motor vehicle to establish and maintain the ability to damages for liability on account of motor vehicle accidents in the amount of:
- $10,000 for damage or destruction of property of others in one crash;
- $25,000 for bodily injury or death of one person in one crash; and
- $50,000 for the bodily injury or death of two or more persons in one crash.
The requirements of the section can also be satisfied by maintaining coverage of at least $60,000 for combined property damage and bodily injury liability for any one crash.
The section adds bodily injury liability to the policy requirements in order to satisfy s. 324.151, F.S.
Section 4: Amends Subsections (1) and (2) of s. 324.0221, F.S.-Reports by Insurers
This section requires insurers to submit information to the Florida Department of Highway Safety and Motor Vehicles (“DHSMV”) and notifies insurers about bodily injury insurance, rather than Personal Injury Protection coverage. It also amends the reporting requirement of the issuance of a new bodily injury liability or property damage liability coverage to the DHSMV from 30 days to 10 days.
Section 5: Amends s. 324.031, F.S.-Manner of providing financial responsibility
- This section eliminates a vehicle owner or operator’s option of posting a surety bond to prove financial responsibility, but allows an owner/operator to furnish a certificate of self-insurance to satisfy the requirement.
- Increases the amount of bond or deposit equal to the number of vehicles owned to $60,000 from $30,000, and increases the maximum limit to $240,000 from $120,000.
- Increases the amount of insurance any person, other than a natural person must maintain, from $10,000/$20,000/$10,000 or $30,000 combined singe limits to $25,000/50,000/10,000 or $60,000 combined.
Section 6: Amends s. 324.071, F.S. -Reinstatement; renewal of license; reinstatement fee
Requires the payment of a nonrefundable reinstatement fee as specified in s. 324.0221, F.S., in lieu of a flat $15 fee.
Section 7: Amends s. 324.161, F.S. -Proof of financial responsibility
Increases the amount required for a surety bond or deposit from $30,000 to $60,000.
Section 8: Amends Subsections (1) and (2) of s. 324.171-Self- Insurer
Increases the threshold to qualify as a self-insurer from a net unencumbered worth of at least $40,000 to $60,000 for a private individual; and increases the threshold for a person, including a firm, partnership, association, corporation, or other person, other than a natural person, from $40,000 to $60,000 for the first vehicle; and increases from $20,000 to $30,000 for each additional motor vehicle.
Eliminates the requirement of a self-insurance certificate to include Personal Injury Protection coverage.
Section 9: Amends s. 400.9905, F.S. -Health Care Clinic Act – Definitions.
- Changes vocabulary related to payment for health care services related to a motor vehicle injury, as opposed to health care services under Personal Injury Protection insurance coverage.
- Repeals Florida’s Motor Vehicle No-Fault Law under this Section.
- Establishes the definition of a “motor vehicle accident injury” to mean an accidental bodily injury sustained while occupying a motor vehicle or while not an occupant of a motor vehicle, if the injury is caused by physical contact with a motor vehicle.
Sections 10: Amends Subsection (6) of s. 400.991, F.S. – Nursing Home and Related Health Care Facilities – License Requirements
Conforming language to changes made by the Act.
Section 11: Amends Paragraph (g) of Subsection (1) of s. 400.9935, F.S. -Clinic Responsibilities
Conforming language to changes made by the Act.
Section 12: Amends Paragraph (a) of Subsection (1) of s. 626.989, F.S. -Investigation by department or Division of Insurance Fraud
Conforming language to changes made by the Act.
Section 13: Amends Paragraph (a) of Subsection (4) of s. 626.9895, F.S.-Motor vehicle insurance fraud direct-support organization
Conforming language to changes made by the Act.
Section 14: Amends s. 627.7263, F.S.-Rental and leasing driver’s insurance to be primary
This section eliminates Personal Injury Protection insurance language.
Section 15: Amends Subsections (8) through (10) of Section 627.727. F.S.- Motor vehicle insurance; uninsured and underinsured vehicle coverage; insolvent insurer protection
Eliminates the legal liability language of an uninsured motorist unless it is described under s. 627.737 (2), F.S., limitation of right to damages, inasmuch as s. 627.737, F.S. is repealed
Section 16: Amends Subsection (1) and paragraph (a) of Subsection 2 of s. 627.7275, F.S.-Motor vehicle liability
Conforming language
Section 17: Amends Paragraph (a) of Subsection (1) of s. 627.728, F.S.-Cancellations; nonrenewals
Conforming language
Section 18: Amends Subsection (1), paragraph (a) of subsection (5), and subsection (7) of s. 627.7295, F.S.-Motor vehicle insurance contracts
Conforming language
Sections 19-21: Repeals Florida Motor Vehicle No-Fault Law and effect of law on Personal Injury Protection policies
Section 22: Amends s. 627.732, F.S.-Definitions
Conforming provisions to changes made by the Act
Section 23: Amends Section 627.733, F.S.-Required security
Deletes the security requirements with respect to No-Fault coverage to substitute the security requirements as provided under Chapter 324, F.S.
Section 24: Amends s. 627.734, F.S.-Proof of Security
Conforming cross-references
Section 25: Amends s. 627.7401, F.S.-Notification of security requirements
Applies notice requirements to bodily injury and property liability security instead of Personal Injury Protection
Section 26: Creates s. 627.7355, F.S.-Motor vehicle insurance claims brought in a single action.
This section provides that all claims arising out of a plaintiff’s injuries shall be brought together, unless good cause is shown.
Sections 27-33: Removes the requirement for Personal Injury Protection coverage and conforming provisions
- Repeals s. 627.737 and 627.739, F.S. relating to exemption from tort liability for persons maintaining Personal Injury Protection coverage.
- Repeals s. 627.7403, F.S. relating to the mandatory joinder of derivative claims.
- Repeals s. 627.7405, F.S. relating to insurers’ right of reimbursement.
- Repeals s. 627.7407, F.S. relating to the application of the Florida Motor Vehicle No-Fault Law.
- Repeals subsections 15 and 16 of chapter 2012-197, Laws of Florida, requiring the Florida Office of Insurance Regulation to contract for a study and perform a data call relating to changes made to the Florida Motor Vehicle No-Fault Law in 2012
Section 34: Amends Subsection (1) of s. 316.646, F.S.- Security required
- Conforming language
- Allows for proof of insurance to be in electronic format
- The section proscribes that the act of presenting to law enforcement an electronic device for the purpose of displaying proof of insurance does not constitute consent for the officer to access any other information from the device.
- The person who presents the electronic device assumes the liability for any damage to the device.
Sections 35-50
Conforming language
Section 51: Application of Act; notice to policyholders
- Effective January 1, 2014 – any person subject to s. 324.022 and s. 627.733, F.S. must maintain at least minimum liability coverage as prescribed in this Act:
- $10,000 for damage or destruction of property of others in one crash;
- $25,000 for bodily injury or death of one person in one crash; and
- $50,000 for the bodily injury or death of two or more persons in one crash.
- Effective January 1, 2014 – any new or renewal motor vehicle insurance policy delivered or issued must comply with minimum liability coverage.
- Any existing policy issued prior to January 1, 2014 that provides Personal Injury Protection and property damage liability that met prior requirements, but does not meet the minimum liability as prescribed in the act, shall be deemed to meet the requirements until such policy is renewed, non-renewed or cancelled after January 1, 2014.
- Each insurer must allow each insured who has a new policy or renewal policy providing for Personal Injury Protection that became effective before January 1, 2014 to change coverages.
- Personal Injury Protection may not be included in policies issued or renewed after January 1, 2104.
- Each insurer, no later than September 1, 2013, shall provide notice of this section to each of their insured. The requirements for such notice are provided in the Act and such notice is subject to approval by the Florida Office of Insurance Regulation.
Section 52: Application of suspensions for failure to maintain liability coverage
All suspensions for failure to maintain coverage by law prior to January 1, 2014 remain in effect.
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