Bill Text: FL S0054 | 2021 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Motor Vehicle Insurance
Spectrum: Bipartisan Bill
Status: (Vetoed) 2021-06-29 - Vetoed by Governor, companion bill(s) passed, see CS/SB 420 (Ch. 2021-96) [S0054 Detail]
Download: Florida-2021-S0054-Introduced.html
Bill Title: Motor Vehicle Insurance
Spectrum: Bipartisan Bill
Status: (Vetoed) 2021-06-29 - Vetoed by Governor, companion bill(s) passed, see CS/SB 420 (Ch. 2021-96) [S0054 Detail]
Download: Florida-2021-S0054-Introduced.html
Florida Senate - 2021 SB 54
By Senator Burgess
20-00753A-21 202154__
1 A bill to be entitled
2 An act relating to motor vehicle insurance; repealing
3 ss. 627.730, 627.731, 627.7311, 627.732, 627.733,
4 627.734, 627.736, 627.737, 627.739, 627.7401,
5 627.7403, and 627.7405, F.S., which comprise the
6 Florida Motor Vehicle No-Fault Law; repealing s.
7 627.7407, F.S., relating to application of the Florida
8 Motor Vehicle No-Fault Law; amending s. 316.646, F.S.;
9 revising a requirement for proof of security on a
10 motor vehicle and the applicability of the
11 requirement; amending s. 318.18, F.S.; conforming a
12 provision to changes made by the act; making technical
13 changes; amending s. 320.02, F.S.; revising the motor
14 vehicle insurance coverages that an applicant must
15 show to register certain vehicles with the Department
16 of Highway Safety and Motor Vehicles; conforming a
17 provision to changes made by the act; revising
18 construction; amending s. 320.0609, F.S.; conforming a
19 provision to changes made by the act; making technical
20 changes; amending s. 320.27, F.S.; defining the term
21 “garage liability insurance”; revising garage
22 liability insurance requirements for motor vehicle
23 dealer applicants; conforming a provision to changes
24 made by the act; amending s. 320.771, F.S.; revising
25 garage liability insurance requirements for
26 recreational vehicle dealer license applicants;
27 amending ss. 322.251 and 322.34, F.S.; conforming
28 provisions to changes made by the act; making
29 technical changes; amending s. 324.011, F.S.; revising
30 legislative intent; amending s. 324.021, F.S.;
31 revising definitions of the terms “motor vehicle” and
32 “proof of financial responsibility”; revising minimum
33 coverage requirements for proof of financial
34 responsibility for specified motor vehicles; defining
35 the term “for-hire passenger transportation vehicle”;
36 conforming provisions to changes made by the act;
37 amending s. 324.022, F.S.; revising minimum liability
38 coverage requirements for motor vehicle owners or
39 operators; revising authorized methods for meeting
40 such requirements; deleting a provision relating to an
41 insurer’s duty to defend certain claims; revising the
42 vehicles that are excluded from the definition of the
43 term “motor vehicle”; providing security requirements
44 for certain excluded vehicles; conforming provisions
45 to changes made by the act; conforming cross
46 references; amending s. 324.0221, F.S.; revising
47 coverages that subject a policy to certain insurer
48 reporting and notice requirements; conforming
49 provisions to changes made by the act; creating s.
50 324.0222, F.S.; providing that driver license or
51 registration suspensions for failure to maintain
52 required security which were in effect before a
53 specified date remain in full force and effect;
54 providing that such suspended licenses or
55 registrations may be reinstated as provided in a
56 specified section; amending s. 324.023, F.S.;
57 conforming cross-references; making technical changes;
58 amending s. 324.031, F.S.; specifying a method of
59 proving financial responsibility; revising the amount
60 of a certificate of deposit required to elect a
61 certain method of proof of financial responsibility;
62 revising excess liability coverage requirements for a
63 person electing to use such method; amending s.
64 324.032, F.S.; revising financial responsibility
65 requirements for owners or lessees of for-hire
66 passenger transportation vehicles; amending ss.
67 324.051, 324.071, and 324.091, F.S.; making technical
68 changes; amending s. 324.151, F.S.; revising
69 requirements for motor vehicle liability insurance
70 policies relating to coverage, and exclusion from
71 coverage, for certain drivers and vehicles; defining
72 terms; conforming provisions to changes made by the
73 act; making technical changes; amending s. 324.161,
74 F.S.; revising requirements for a certificate of
75 deposit that is required if a person elects a certain
76 method of proving financial responsibility; amending
77 s. 324.171, F.S.; revising the minimum net worth
78 requirements to qualify certain persons as self
79 insurers; conforming provisions to changes made by the
80 act; amending s. 324.251, F.S.; revising the short
81 title and an effective date; amending s. 400.9905,
82 F.S.; revising the definition of the term “clinic”;
83 amending ss. 400.991 and 400.9935, F.S.; conforming
84 provisions to changes made by the act; amending s.
85 409.901, F.S.; revising the definition of the term
86 “third-party benefit”; amending s. 409.910, F.S.;
87 revising the definition of the term “medical
88 coverage”; amending s. 456.057, F.S.; conforming a
89 provision to changes made by the act; amending s.
90 456.072, F.S.; revising specified grounds for
91 discipline for certain health professions; defining
92 the term “upcoded”; amending s. 624.155, F.S.;
93 revising conditions for awarding punitive damages;
94 providing that a person is not entitled to judgments
95 under multiple bad faith remedies; creating s.
96 624.156, F.S.; providing that the section applies in
97 certain bad faith failure to settle actions against
98 any insurer for a loss arising out of the ownership,
99 maintenance, or use of a motor vehicle under specified
100 circumstances; providing an exception; providing that
101 insurers have a duty of good faith; defining the term
102 “bad faith failure to settle”; specifying best
103 practice standards for insurers upon receiving notice
104 of a claim or a demand for settlement; specifying
105 certain requirements for insurer communications to an
106 insured in handling first-party and third-party
107 claims; specifying requirements for the insurer when a
108 loss involves multiple claimants under certain
109 conditions; specifying conditions precedent for
110 claimants filing bad faith failure to settle actions
111 except those actions filed under a specified section;
112 specifying requirements for information that must be
113 included in a demand for settlement; requiring a
114 demand for settlement to release the insured from
115 liability under certain conditions; requiring the
116 demand for settlement be served upon the insurer at
117 the address designated with the Department of
118 Financial Services; prohibiting claimants from placing
119 conditions on acceptance of a demand for settlement
120 other than electing the right to examine the insured
121 under oath regarding certain information; authorizing
122 claimants to examine insureds under oath under certain
123 conditions; authorizing the claimant to request the
124 insured bring relevant documents to the examination
125 under oath; prohibiting the claimant from examining
126 the insured under oath regarding liability; requiring
127 the claimant, insurer, and insured to cooperate in
128 scheduling the examination under oath; specifying the
129 timeframe within which the examination must take
130 place; authorizing the claimant to withdraw the demand
131 for settlement if the insured refuses to submit to an
132 examination under oath; authorizing an insurer to
133 accept a demand for settlement if the insured refuses
134 to submit to an examination under oath; absolving an
135 insurer of a duty to defend and of liability under
136 certain circumstances; specifying the timeframe within
137 which a claimant may withdraw a demand for settlement;
138 specifying that an insurer’s duty of good faith
139 continues unless a claimant’s withdrawal of a demand
140 for settlement occurs under certain conditions;
141 providing that insurers may not be held liable in a
142 bad faith failure to settle action if they tender
143 policy limits within a certain timeframe; specifying
144 that insurers that accept demands for settlement are
145 entitled to releases of their insureds; providing an
146 exception; requiring claimants to prove in any bad
147 faith failure to settle action by a preponderance of
148 the evidence that the insurer violated its duty of
149 good faith and in bad faith failed to settle;
150 specifying factors for the trier of fact to consider
151 in determining whether an insurer violated its duty of
152 good faith and in bad faith failed to settle;
153 requiring the trier of fact to be informed of an
154 excess judgment; prohibiting disclosure of certain
155 judgment information to the trier of fact; limiting
156 damages in bad faith failure to settle actions;
157 providing that judgment creditors must be subrogated
158 to the rights of the insured under certain
159 circumstances; prohibiting multiple bad faith
160 remedies; providing applicability; amending s.
161 626.9541, F.S.; conforming a provision to changes made
162 by the act; revising the type of insurance coverage
163 applicable to a certain prohibited act; amending s.
164 626.989, F.S.; revising the definition of the term
165 “fraudulent insurance act”; amending s. 627.06501,
166 F.S.; revising coverages that may provide for a
167 reduction in motor vehicle insurance policy premium
168 charges under certain circumstances; amending s.
169 627.0651, F.S.; specifying requirements for initial
170 rate filings for motor vehicle liability policies
171 submitted to the Office of Insurance Regulation
172 beginning on a specified date; amending s. 627.0652,
173 F.S.; revising coverages that must provide a premium
174 charge reduction under certain circumstances; amending
175 s. 627.0653, F.S.; revising coverages subject to
176 premium discounts for specified motor vehicle
177 equipment; amending s. 627.4132, F.S.; revising
178 coverages that are subject to a stacking prohibition;
179 amending s. 627.4137, F.S.; requiring that insurers
180 disclose certain information at the request of a
181 claimant’s attorney; authorizing a claimant to file an
182 action under certain circumstances; providing for the
183 award of reasonable attorney fees and costs under
184 certain circumstances; amending s. 627.7263, F.S.;
185 revising coverages that are deemed primary, except
186 under certain circumstances, for the lessor of a motor
187 vehicle for lease or rent; revising a notice that is
188 required if the lessee’s coverage is to be primary;
189 creating s. 627.7265, F.S.; specifying persons whom
190 medical payments coverage must protect; requiring
191 medical payments coverage to cover reasonable expenses
192 for certain medical services provided by specified
193 providers and facilities and to provide a death
194 benefit; specifying the minimum medical expense and
195 death benefit limits; specifying coverage options an
196 insurer is required or authorized to offer; providing
197 construction relating to limits on certain other
198 coverages; requiring insurers, upon receiving certain
199 notice of an accident, to hold a specified reserve for
200 certain purposes for a certain timeframe; providing
201 that the reserve requirement does not require insurers
202 to establish a claim reserve for accounting purposes;
203 specifying that an insurer providing medical payments
204 coverage benefits may not seek a lien on a certain
205 recovery and may not bring a certain cause of action;
206 authorizing insurers to include policy provisions
207 allowing for subrogation, under certain circumstances,
208 for medical payments benefits paid; providing
209 construction; specifying a requirement for an insured
210 for repayment of medical payments benefits under
211 certain circumstances; prohibiting insurers from
212 including policy provisions allowing for subrogation
213 for death benefits paid; amending s. 627.727, F.S.;
214 revising the legal liability of an uninsured motorist
215 coverage insurer; conforming provisions to changes
216 made by the act; amending s. 627.7275, F.S.; revising
217 required coverages for a motor vehicle insurance
218 policy; conforming provisions to changes made by the
219 act; creating s. 627.7278, F.S.; defining the term
220 “minimum security requirements”; providing
221 requirements, applicability, and construction relating
222 to motor vehicle insurance policies as of a certain
223 date; requiring insurers to allow certain insureds to
224 make certain coverage changes, subject to certain
225 conditions; requiring an insurer to provide, by a
226 specified date, a specified notice to policyholders
227 relating to requirements under the act; amending s.
228 627.728, F.S.; conforming a provision to changes made
229 by the act; making technical changes; amending s.
230 627.7295, F.S.; revising the definitions of the terms
231 “policy” and “binder”; revising the coverages of a
232 motor vehicle insurance policy for which a licensed
233 general lines agent may charge a specified fee;
234 conforming provisions to changes made by the act;
235 amending s. 627.7415, F.S.; revising additional
236 liability insurance requirements for commercial motor
237 vehicles; creating s. 627.747, F.S.; providing that
238 private passenger motor vehicle policies may exclude
239 certain identified individuals from specified
240 coverages under certain circumstances; providing that
241 such policies may not exclude coverage under certain
242 circumstances; amending s. 627.748, F.S.; revising
243 insurance requirements for transportation network
244 company drivers; conforming provisions to changes made
245 by the act; amending s. 627.749, F.S.; conforming a
246 provision to changes made by the act; amending s.
247 627.8405, F.S.; revising coverages in a policy sold in
248 combination with an accidental death and dismemberment
249 policy which a premium finance company may not
250 finance; revising rulemaking authority of the
251 Financial Services Commission; amending ss. 627.915,
252 628.909, 705.184, and 713.78, F.S.; conforming
253 provisions to changes made by the act; making
254 technical changes; amending s. 817.234, F.S.; revising
255 coverages that are the basis of specified prohibited
256 false and fraudulent insurance claims; conforming
257 provisions to changes made by the act; providing an
258 appropriation; providing effective dates.
259
260 Be It Enacted by the Legislature of the State of Florida:
261
262 Section 1. Sections 627.730, 627.731, 627.7311, 627.732,
263 627.733, 627.734, 627.736, 627.737, 627.739, 627.7401, 627.7403,
264 and 627.7405, Florida Statutes, are repealed.
265 Section 2. Section 627.7407, Florida Statutes, is repealed.
266 Section 3. Subsection (1) of section 316.646, Florida
267 Statutes, is amended to read:
268 316.646 Security required; proof of security and display
269 thereof.—
270 (1) Any person required by s. 324.022 to maintain liability
271 security for property damage, liability security, required by s.
272 324.023 to maintain liability security for bodily injury, or
273 death, or required by s. 627.733 to maintain personal injury
274 protection security on a motor vehicle shall have in his or her
275 immediate possession at all times while operating such motor
276 vehicle proper proof of maintenance of the required security
277 required under s. 324.021(7).
278 (a) Such proof must shall be in a uniform paper or
279 electronic format, as prescribed by the department, a valid
280 insurance policy, an insurance policy binder, a certificate of
281 insurance, or such other proof as may be prescribed by the
282 department.
283 (b)1. The act of presenting to a law enforcement officer an
284 electronic device displaying proof of insurance in an electronic
285 format does not constitute consent for the officer to access any
286 information on the device other than the displayed proof of
287 insurance.
288 2. The person who presents the device to the officer
289 assumes the liability for any resulting damage to the device.
290 Section 4. Paragraph (b) of subsection (2) of section
291 318.18, Florida Statutes, is amended to read:
292 318.18 Amount of penalties.—The penalties required for a
293 noncriminal disposition pursuant to s. 318.14 or a criminal
294 offense listed in s. 318.17 are as follows:
295 (2) Thirty dollars for all nonmoving traffic violations
296 and:
297 (b) For all violations of ss. 320.0605, 320.07(1), 322.065,
298 and 322.15(1). A Any person who is cited for a violation of s.
299 320.07(1) shall be charged a delinquent fee pursuant to s.
300 320.07(4).
301 1. If a person who is cited for a violation of s. 320.0605
302 or s. 320.07 can show proof of having a valid registration at
303 the time of arrest, the clerk of the court may dismiss the case
304 and may assess a dismissal fee of up to $10, from which the
305 clerk shall remit $2.50 to the Department of Revenue for deposit
306 into the General Revenue Fund. A person who finds it impossible
307 or impractical to obtain a valid registration certificate must
308 submit an affidavit detailing the reasons for the impossibility
309 or impracticality. The reasons may include, but are not limited
310 to, the fact that the vehicle was sold, stolen, or destroyed;
311 that the state in which the vehicle is registered does not issue
312 a certificate of registration; or that the vehicle is owned by
313 another person.
314 2. If a person who is cited for a violation of s. 322.03,
315 s. 322.065, or s. 322.15 can show a driver license issued to him
316 or her and valid at the time of arrest, the clerk of the court
317 may dismiss the case and may assess a dismissal fee of up to
318 $10, from which the clerk shall remit $2.50 to the Department of
319 Revenue for deposit into the General Revenue Fund.
320 3. If a person who is cited for a violation of s. 316.646
321 can show proof of security as required by s. 324.021(7) s.
322 627.733, issued to the person and valid at the time of arrest,
323 the clerk of the court may dismiss the case and may assess a
324 dismissal fee of up to $10, from which the clerk shall remit
325 $2.50 to the Department of Revenue for deposit into the General
326 Revenue Fund. A person who finds it impossible or impractical to
327 obtain proof of security must submit an affidavit detailing the
328 reasons for the impracticality. The reasons may include, but are
329 not limited to, the fact that the vehicle has since been sold,
330 stolen, or destroyed; that the owner or registrant of the
331 vehicle is not required by s. 627.733 to maintain personal
332 injury protection insurance; or that the vehicle is owned by
333 another person.
334 Section 5. Paragraphs (a) and (d) of subsection (5) of
335 section 320.02, Florida Statutes, are amended to read:
336 320.02 Registration required; application for registration;
337 forms.—
338 (5)(a) Proof that bodily injury liability coverage and
339 property damage liability coverage personal injury protection
340 benefits have been purchased if required under s. 324.022, s.
341 324.032, or s. 627.742 s. 627.733, that property damage
342 liability coverage has been purchased as required under s.
343 324.022, that bodily injury liability or death coverage has been
344 purchased if required under s. 324.023, and that combined bodily
345 liability insurance and property damage liability insurance have
346 been purchased if required under s. 627.7415 must shall be
347 provided in the manner prescribed by law by the applicant at the
348 time of application for registration of any motor vehicle that
349 is subject to such requirements. The issuing agent may not shall
350 refuse to issue registration if such proof of purchase is not
351 provided. Insurers shall furnish uniform proof-of-purchase cards
352 in a paper or electronic format in a form prescribed by the
353 department and include the name of the insured’s insurance
354 company, the coverage identification number, and the make, year,
355 and vehicle identification number of the vehicle insured. The
356 card must contain a statement notifying the applicant of the
357 penalty specified under s. 316.646(4). The card or insurance
358 policy, insurance policy binder, or certificate of insurance or
359 a photocopy of any of these; an affidavit containing the name of
360 the insured’s insurance company, the insured’s policy number,
361 and the make and year of the vehicle insured; or such other
362 proof as may be prescribed by the department constitutes shall
363 constitute sufficient proof of purchase. If an affidavit is
364 provided as proof, it must be in substantially the following
365 form:
366
367 Under penalty of perjury, I ...(Name of insured)... do hereby
368 certify that I have ...(bodily injury liability and Personal
369 Injury Protection, property damage liability, and, if required,
370 Bodily Injury Liability)... insurance currently in effect with
371 ...(Name of insurance company)... under ...(policy number)...
372 covering ...(make, year, and vehicle identification number of
373 vehicle).... ...(Signature of Insured)...
374
375 Such affidavit must include the following warning:
376
377 WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE
378 REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA
379 LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS
380 SUBJECT TO PROSECUTION.
381
382 If an application is made through a licensed motor vehicle
383 dealer as required under s. 319.23, the original or a photocopy
384 photostatic copy of such card, insurance policy, insurance
385 policy binder, or certificate of insurance or the original
386 affidavit from the insured must shall be forwarded by the dealer
387 to the tax collector of the county or the Department of Highway
388 Safety and Motor Vehicles for processing. By executing the
389 aforesaid affidavit, a no licensed motor vehicle dealer is not
390 will be liable in damages for any inadequacy, insufficiency, or
391 falsification of any statement contained therein. A card must
392 also indicate the existence of any bodily injury liability
393 insurance voluntarily purchased.
394 (d) The verifying of proof of personal injury protection
395 insurance, proof of property damage liability insurance, proof
396 of combined bodily liability insurance and property damage
397 liability insurance, or proof of financial responsibility
398 insurance and the issuance or failure to issue the motor vehicle
399 registration under the provisions of this chapter may not be
400 construed in any court as a warranty of the reliability or
401 accuracy of the evidence of such proof, or as meaning that the
402 provisions of any insurance policy furnished as proof of
403 financial responsibility comply with state law. Neither the
404 department nor any tax collector is liable in damages for any
405 inadequacy, insufficiency, falsification, or unauthorized
406 modification of any item of the proof of personal injury
407 protection insurance, proof of property damage liability
408 insurance, proof of combined bodily liability insurance and
409 property damage liability insurance, or proof of financial
410 responsibility before insurance prior to, during, or subsequent
411 to the verification of the proof. The issuance of a motor
412 vehicle registration does not constitute prima facie evidence or
413 a presumption of insurance coverage.
414 Section 6. Paragraph (b) of subsection (1) of section
415 320.0609, Florida Statutes, is amended to read:
416 320.0609 Transfer and exchange of registration license
417 plates; transfer fee.—
418 (1)
419 (b) The transfer of a license plate from a vehicle disposed
420 of to a newly acquired vehicle does not constitute a new
421 registration. The application for transfer must shall be
422 accepted without requiring proof of personal injury protection
423 or liability insurance.
424 Section 7. Subsection (3) of section 320.27, Florida
425 Statutes, is amended, and paragraph (g) is added to subsection
426 (1) of that section, to read:
427 320.27 Motor vehicle dealers.—
428 (1) DEFINITIONS.—The following words, terms, and phrases
429 when used in this section have the meanings respectively
430 ascribed to them in this subsection, except where the context
431 clearly indicates a different meaning:
432 (g) “Garage liability insurance” means, beginning January
433 1, 2022, combined single-limit liability coverage, including
434 property damage and bodily injury liability coverage, in the
435 amount of at least $60,000.
436 (3) APPLICATION AND FEE.—The application for the license
437 application must shall be in such form as may be prescribed by
438 the department and is shall be subject to such rules with
439 respect thereto as may be so prescribed by the department it.
440 Such application must shall be verified by oath or affirmation
441 and must shall contain a full statement of the name and birth
442 date of the person or persons applying for the license therefor;
443 the name of the firm or copartnership, with the names and places
444 of residence of all members thereof, if such applicant is a firm
445 or copartnership; the names and places of residence of the
446 principal officers, if the applicant is a body corporate or
447 other artificial body; the name of the state under whose laws
448 the corporation is organized; the present and former place or
449 places of residence of the applicant; and the prior business in
450 which the applicant has been engaged and its the location
451 thereof. The Such application must shall describe the exact
452 location of the place of business and must shall state whether
453 the place of business is owned by the applicant and when
454 acquired, or, if leased, a true copy of the lease must shall be
455 attached to the application. The applicant shall certify that
456 the location provides an adequately equipped office and is not a
457 residence; that the location affords sufficient unoccupied space
458 upon and within which adequately to store all motor vehicles
459 offered and displayed for sale; and that the location is a
460 suitable place where the applicant can in good faith carry on
461 such business and keep and maintain books, records, and files
462 necessary to conduct such business, which must shall be
463 available at all reasonable hours to inspection by the
464 department or any of its inspectors or other employees. The
465 applicant shall certify that the business of a motor vehicle
466 dealer is the principal business that will which shall be
467 conducted at that location. The application must shall contain a
468 statement that the applicant is either franchised by a
469 manufacturer of motor vehicles, in which case the name of each
470 motor vehicle that the applicant is franchised to sell must
471 shall be included, or an independent (nonfranchised) motor
472 vehicle dealer. The application must shall contain other
473 relevant information as may be required by the department. The
474 applicant shall furnish, including evidence, in a form approved
475 by the department, that the applicant is insured under a garage
476 liability insurance policy or a general liability insurance
477 policy coupled with a business automobile policy having the
478 coverages and limits of the garage liability insurance coverage
479 in accordance with paragraph (1)(g), which shall include, at a
480 minimum, $25,000 combined single-limit liability coverage
481 including bodily injury and property damage protection and
482 $10,000 personal injury protection. However, a salvage motor
483 vehicle dealer as defined in subparagraph (1)(c)5. is exempt
484 from the requirements for garage liability insurance and
485 personal injury protection insurance on those vehicles that
486 cannot be legally operated on roads, highways, or streets in
487 this state. Franchise dealers must submit a garage liability
488 insurance policy, and all other dealers must submit a garage
489 liability insurance policy or a general liability insurance
490 policy coupled with a business automobile policy. Such policy
491 must shall be for the license period, and evidence of a new or
492 continued policy must shall be delivered to the department at
493 the beginning of each license period. Upon making an initial
494 application, the applicant shall pay to the department a fee of
495 $300 in addition to any other fees required by law. Applicants
496 may choose to extend the licensure period for 1 additional year
497 for a total of 2 years. An initial applicant shall pay to the
498 department a fee of $300 for the first year and $75 for the
499 second year, in addition to any other fees required by law. An
500 applicant for renewal shall pay to the department $75 for a 1
501 year renewal or $150 for a 2-year renewal, in addition to any
502 other fees required by law. Upon making an application for a
503 change of location, the applicant person shall pay a fee of $50
504 in addition to any other fees now required by law. The
505 department shall, in the case of every application for initial
506 licensure, verify whether certain facts set forth in the
507 application are true. Each applicant, general partner in the
508 case of a partnership, or corporate officer and director in the
509 case of a corporate applicant shall, must file a set of
510 fingerprints with the department for the purpose of determining
511 any prior criminal record or any outstanding warrants. The
512 department shall submit the fingerprints to the Department of
513 Law Enforcement for state processing and forwarding to the
514 Federal Bureau of Investigation for federal processing. The
515 actual cost of state and federal processing must shall be borne
516 by the applicant and is in addition to the fee for licensure.
517 The department may issue a license to an applicant pending the
518 results of the fingerprint investigation, which license is fully
519 revocable if the department subsequently determines that any
520 facts set forth in the application are not true or correctly
521 represented.
522 Section 8. Paragraph (j) of subsection (3) of section
523 320.771, Florida Statutes, is amended to read:
524 320.771 License required of recreational vehicle dealers.—
525 (3) APPLICATION.—The application for such license shall be
526 in the form prescribed by the department and subject to such
527 rules as may be prescribed by it. The application shall be
528 verified by oath or affirmation and shall contain:
529 (j) A statement that the applicant is insured under a
530 garage liability insurance policy in accordance with s.
531 320.27(1)(g), which shall include, at a minimum, $25,000
532 combined single-limit liability coverage, including bodily
533 injury and property damage protection, and $10,000 personal
534 injury protection, if the applicant is to be licensed as a
535 dealer in, or intends to sell, recreational vehicles. However, a
536 garage liability policy is not required for the licensure of a
537 mobile home dealer who sells only park trailers.
538
539 The department shall, if it deems necessary, cause an
540 investigation to be made to ascertain if the facts set forth in
541 the application are true and may shall not issue a license to
542 the applicant until it is satisfied that the facts set forth in
543 the application are true.
544 Section 9. Subsections (1) and (2) of section 322.251,
545 Florida Statutes, are amended to read:
546 322.251 Notice of cancellation, suspension, revocation, or
547 disqualification of license.—
548 (1) All orders of cancellation, suspension, revocation, or
549 disqualification issued under the provisions of this chapter,
550 chapter 318, or chapter 324 must, or ss. 627.732-627.734 shall
551 be given either by personal delivery thereof to the licensee
552 whose license is being canceled, suspended, revoked, or
553 disqualified or by deposit in the United States mail in an
554 envelope, first class, postage prepaid, addressed to the
555 licensee at his or her last known mailing address furnished to
556 the department. Such mailing by the department constitutes
557 notification, and any failure by the person to receive the
558 mailed order will not affect or stay the effective date or term
559 of the cancellation, suspension, revocation, or disqualification
560 of the licensee’s driving privilege.
561 (2) The giving of notice and an order of cancellation,
562 suspension, revocation, or disqualification by mail is complete
563 upon expiration of 20 days after deposit in the United States
564 mail for all notices except those issued under chapter 324 or
565 ss. 627.732–627.734, which are complete 15 days after deposit in
566 the United States mail. Proof of the giving of notice and an
567 order of cancellation, suspension, revocation, or
568 disqualification in either manner must shall be made by entry in
569 the records of the department that such notice was given. The
570 entry is admissible in the courts of this state and constitutes
571 sufficient proof that such notice was given.
572 Section 10. Paragraph (a) of subsection (8) of section
573 322.34, Florida Statutes, is amended to read:
574 322.34 Driving while license suspended, revoked, canceled,
575 or disqualified.—
576 (8)(a) Upon the arrest of a person for the offense of
577 driving while the person’s driver license or driving privilege
578 is suspended or revoked, the arresting officer shall determine:
579 1. Whether the person’s driver license is suspended or
580 revoked, or the person is under suspension or revocation
581 equivalent status.
582 2. Whether the person’s driver license has remained
583 suspended or revoked, or the person has been under suspension or
584 revocation equivalent status, since a conviction for the offense
585 of driving with a suspended or revoked license.
586 3. Whether the suspension, revocation, or suspension or
587 revocation equivalent status was made under s. 316.646 or s.
588 627.733, relating to failure to maintain required security, or
589 under s. 322.264, relating to habitual traffic offenders.
590 4. Whether the driver is the registered owner or co-owner
591 of the vehicle.
592 Section 11. Section 324.011, Florida Statutes, is amended
593 to read:
594 324.011 Legislative intent; purpose of chapter.—It is the
595 intent of the Legislature that this chapter ensure that the
596 privilege of owning or operating a motor vehicle in this state
597 be exercised to recognize the existing privilege to own or
598 operate a motor vehicle on the public streets and highways of
599 this state when such vehicles are used with due consideration
600 for others’ safety others and their property, promoting and to
601 promote safety, and providing provide financial security
602 requirements for such owners and or operators whose
603 responsibility it is to recompense others for injury to person
604 or property caused by the operation of a motor vehicle.
605 Therefore, the purpose of this chapter is to require that every
606 owner or operator of a motor vehicle required to be registered
607 in this state establish, maintain, and it is required herein
608 that the operator of a motor vehicle involved in a crash or
609 convicted of certain traffic offenses meeting the operative
610 provisions of s. 324.051(2) shall respond for such damages and
611 show proof of financial ability to respond for damages arising
612 out of the ownership, maintenance, or use of a motor vehicle in
613 future accidents as a requisite to owning or operating a motor
614 vehicle in this state his or her future exercise of such
615 privileges.
616 Section 12. Subsections (1) and (7) and paragraph (c) of
617 subsection (9) of section 324.021, Florida Statutes, are
618 amended, and subsection (12) is added to that section, to read:
619 324.021 Definitions; minimum insurance required.—The
620 following words and phrases when used in this chapter shall, for
621 the purpose of this chapter, have the meanings respectively
622 ascribed to them in this section, except in those instances
623 where the context clearly indicates a different meaning:
624 (1) MOTOR VEHICLE.—Every self-propelled vehicle that is
625 designed and required to be licensed for use upon a highway,
626 including trailers and semitrailers designed for use with such
627 vehicles, except traction engines, road rollers, farm tractors,
628 power shovels, and well drillers, and every vehicle that is
629 propelled by electric power obtained from overhead wires but not
630 operated upon rails, but not including any personal delivery
631 device or mobile carrier as defined in s. 316.003, bicycle,
632 electric bicycle, or moped. However, the term “motor vehicle”
633 does not include a motor vehicle as defined in s. 627.732(3)
634 when the owner of such vehicle has complied with the
635 requirements of ss. 627.730-627.7405, inclusive, unless the
636 provisions of s. 324.051 apply; and, in such case, the
637 applicable proof of insurance provisions of s. 320.02 apply.
638 (7) PROOF OF FINANCIAL RESPONSIBILITY.—Beginning January 1,
639 2022, That proof of ability to respond in damages for liability
640 on account of crashes arising out of the ownership, maintenance,
641 or use of a motor vehicle:
642 (a) With respect to a motor vehicle other than a commercial
643 motor vehicle, nonpublic sector bus, or for-hire passenger
644 transportation vehicle, in the amount of:
645 1. Twenty-five thousand dollars for $10,000 because of
646 bodily injury to, or the death of, one person in any one crash
647 and,;
648 (b) subject to such limits for one person, in the amount of
649 $50,000 for $20,000 because of bodily injury to, or the death
650 of, two or more persons in any one crash; and
651 2.(c) Ten thousand dollars for damage In the amount of
652 $10,000 because of injury to, or destruction of, property of
653 others in any one crash.; and
654 (b)(d) With respect to commercial motor vehicles and
655 nonpublic sector buses, in the amounts specified in s. 627.7415
656 ss. 627.7415 and 627.742, respectively.
657 (c) With respect to nonpublic sector buses, in the amounts
658 specified in s. 627.742.
659 (d) With respect to for-hire passenger transportation
660 vehicles, in the amounts specified in s. 324.032.
661 (9) OWNER; OWNER/LESSOR.—
662 (c) Application.—
663 1. The limits on liability in subparagraphs (b)2. and 3. do
664 not apply to an owner of motor vehicles that are used for
665 commercial activity in the owner’s ordinary course of business,
666 other than a rental company that rents or leases motor vehicles.
667 For purposes of this paragraph, the term “rental company”
668 includes only an entity that is engaged in the business of
669 renting or leasing motor vehicles to the general public and that
670 rents or leases a majority of its motor vehicles to persons with
671 no direct or indirect affiliation with the rental company. The
672 term “rental company” also includes:
673 a. A related rental or leasing company that is a subsidiary
674 of the same parent company as that of the renting or leasing
675 company that rented or leased the vehicle.
676 b. The holder of a motor vehicle title or an equity
677 interest in a motor vehicle title if the title or equity
678 interest is held pursuant to or to facilitate an asset-backed
679 securitization of a fleet of motor vehicles used solely in the
680 business of renting or leasing motor vehicles to the general
681 public and under the dominion and control of a rental company,
682 as described in this subparagraph, in the operation of such
683 rental company’s business.
684 2. Furthermore, with respect to commercial motor vehicles
685 as defined in s. 207.002 or s. 320.01 s. 627.732, the limits on
686 liability in subparagraphs (b)2. and 3. do not apply if, at the
687 time of the incident, the commercial motor vehicle is being used
688 in the transportation of materials found to be hazardous for the
689 purposes of the Hazardous Materials Transportation Authorization
690 Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
691 required pursuant to such act to carry placards warning others
692 of the hazardous cargo, unless at the time of lease or rental
693 either:
694 a. The lessee indicates in writing that the vehicle will
695 not be used to transport materials found to be hazardous for the
696 purposes of the Hazardous Materials Transportation Authorization
697 Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
698 b. The lessee or other operator of the commercial motor
699 vehicle has in effect insurance with limits of at least $5
700 million $5,000,000 combined property damage and bodily injury
701 liability.
702 3.a. A motor vehicle dealer, or a motor vehicle dealer’s
703 leasing or rental affiliate, that provides a temporary
704 replacement vehicle at no charge or at a reasonable daily charge
705 to a service customer whose vehicle is being held for repair,
706 service, or adjustment by the motor vehicle dealer is immune
707 from any cause of action and is not liable, vicariously or
708 directly, under general law solely by reason of being the owner
709 of the temporary replacement vehicle for harm to persons or
710 property that arises out of the use, or operation, of the
711 temporary replacement vehicle by any person during the period
712 the temporary replacement vehicle has been entrusted to the
713 motor vehicle dealer’s service customer if there is no
714 negligence or criminal wrongdoing on the part of the motor
715 vehicle owner, or its leasing or rental affiliate.
716 b. For purposes of this section, and notwithstanding any
717 other provision of general law, a motor vehicle dealer, or a
718 motor vehicle dealer’s leasing or rental affiliate, that gives
719 possession, control, or use of a temporary replacement vehicle
720 to a motor vehicle dealer’s service customer may not be adjudged
721 liable in a civil proceeding absent negligence or criminal
722 wrongdoing on the part of the motor vehicle dealer, or the motor
723 vehicle dealer’s leasing or rental affiliate, if the motor
724 vehicle dealer or the motor vehicle dealer’s leasing or rental
725 affiliate executes a written rental or use agreement and obtains
726 from the person receiving the temporary replacement vehicle a
727 copy of the person’s driver license and insurance information
728 reflecting at least the minimum motor vehicle insurance coverage
729 required in the state. Any subsequent determination that the
730 driver license or insurance information provided to the motor
731 vehicle dealer, or the motor vehicle dealer’s leasing or rental
732 affiliate, was in any way false, fraudulent, misleading,
733 nonexistent, canceled, not in effect, or invalid does not alter
734 or diminish the protections provided by this section, unless the
735 motor vehicle dealer, or the motor vehicle dealer’s leasing or
736 rental affiliate, had actual knowledge thereof at the time
737 possession of the temporary replacement vehicle was provided.
738 c. For purposes of this subparagraph, the term “service
739 customer” does not include an agent or a principal of a motor
740 vehicle dealer or a motor vehicle dealer’s leasing or rental
741 affiliate, and does not include an employee of a motor vehicle
742 dealer or a motor vehicle dealer’s leasing or rental affiliate
743 unless the employee was provided a temporary replacement
744 vehicle:
745 (I) While the employee’s personal vehicle was being held
746 for repair, service, or adjustment by the motor vehicle dealer;
747 (II) In the same manner as other customers who are provided
748 a temporary replacement vehicle while the customer’s vehicle is
749 being held for repair, service, or adjustment; and
750 (III) The employee was not acting within the course and
751 scope of their employment.
752 (12) FOR-HIRE PASSENGER TRANSPORTATION VEHICLE.—Every for
753 hire vehicle as defined in s. 320.01(15) which is offered or
754 used to provide transportation for persons, including taxicabs,
755 limousines, and jitneys.
756 Section 13. Section 324.022, Florida Statutes, is amended
757 to read:
758 324.022 Financial responsibility requirements for property
759 damage.—
760 (1)(a) Beginning January 1, 2022, every owner or operator
761 of a motor vehicle required to be registered in this state shall
762 establish and continuously maintain the ability to respond in
763 damages for liability on account of accidents arising out of the
764 use of the motor vehicle in the amount of:
765 1. Twenty-five thousand dollars for bodily injury to, or
766 the death of, one person in any one crash and, subject to such
767 limits for one person, in the amount of $50,000 for bodily
768 injury to, or the death of, two or more persons in any one
769 crash; and
770 2. Ten thousand dollars for $10,000 because of damage to,
771 or destruction of, property of others in any one crash.
772 (b) The requirements of paragraph (a) this section may be
773 met by one of the methods established in s. 324.031; by self
774 insuring as authorized by s. 768.28(16); or by maintaining a
775 motor vehicle liability insurance policy that an insurance
776 policy providing coverage for property damage liability in the
777 amount of at least $10,000 because of damage to, or destruction
778 of, property of others in any one accident arising out of the
779 use of the motor vehicle. The requirements of this section may
780 also be met by having a policy which provides combined property
781 damage liability and bodily injury liability coverage for any
782 one crash arising out of the ownership, maintenance, or use of a
783 motor vehicle and that conforms to the requirements of s.
784 324.151 in the amount of at least $60,000 for every owner or
785 operator subject to the financial responsibility required in
786 paragraph (a) $30,000 for combined property damage liability and
787 bodily injury liability for any one crash arising out of the use
788 of the motor vehicle. The policy, with respect to coverage for
789 property damage liability, must meet the applicable requirements
790 of s. 324.151, subject to the usual policy exclusions that have
791 been approved in policy forms by the Office of Insurance
792 Regulation. No insurer shall have any duty to defend uncovered
793 claims irrespective of their joinder with covered claims.
794 (2) As used in this section, the term:
795 (a) “Motor vehicle” means any self-propelled vehicle that
796 has four or more wheels and that is of a type designed and
797 required to be licensed for use on the highways of this state,
798 and any trailer or semitrailer designed for use with such
799 vehicle. The term does not include the following:
800 1. A mobile home as defined in s. 320.01.
801 2. A motor vehicle that is used in mass transit and
802 designed to transport more than five passengers, exclusive of
803 the operator of the motor vehicle, and that is owned by a
804 municipality, transit authority, or political subdivision of the
805 state.
806 3. A school bus as defined in s. 1006.25, which must
807 maintain security as required under s. 316.615.
808 4. A commercial motor vehicle as defined in s. 207.002 or
809 s. 320.01, which must maintain security as required under ss.
810 324.031 and 627.7415.
811 5. A nonpublic sector bus, which must maintain security as
812 required under ss. 324.031 and 627.742.
813 6.4. A vehicle providing for-hire passenger transportation
814 vehicle, which must that is subject to the provisions of s.
815 324.031. A taxicab shall maintain security as required under s.
816 324.032 s. 324.032(1).
817 7.5. A personal delivery device as defined in s. 316.003.
818 (b) “Owner” means the person who holds legal title to a
819 motor vehicle or the debtor or lessee who has the right to
820 possession of a motor vehicle that is the subject of a security
821 agreement or lease with an option to purchase.
822 (3) Each nonresident owner or registrant of a motor vehicle
823 that, whether operated or not, has been physically present
824 within this state for more than 90 days during the preceding 365
825 days shall maintain security as required by subsection (1). The
826 security must be that is in effect continuously throughout the
827 period the motor vehicle remains within this state.
828 (4) An The owner or registrant of a motor vehicle who is
829 exempt from the requirements of this section if she or he is a
830 member of the United States Armed Forces and is called to or on
831 active duty outside the United States in an emergency situation
832 is exempt from this section while he or she. The exemption
833 provided by this subsection applies only as long as the member
834 of the Armed Forces is on such active duty. This exemption
835 outside the United States and applies only while the vehicle
836 covered by the security is not operated by any person. Upon
837 receipt of a written request by the insured to whom the
838 exemption provided in this subsection applies, the insurer shall
839 cancel the coverages and return any unearned premium or suspend
840 the security required by this section. Notwithstanding s.
841 324.0221(2) s. 324.0221(3), the department may not suspend the
842 registration or operator’s license of an any owner or registrant
843 of a motor vehicle during the time she or he qualifies for the
844 an exemption under this subsection. An Any owner or registrant
845 of a motor vehicle who qualifies for the an exemption under this
846 subsection shall immediately notify the department before prior
847 to and at the end of the expiration of the exemption.
848 Section 14. Subsections (1) and (2) of section 324.0221,
849 Florida Statutes, are amended to read:
850 324.0221 Reports by insurers to the department; suspension
851 of driver license and vehicle registrations; reinstatement.—
852 (1)(a) Each insurer that has issued a policy providing
853 personal injury protection coverage or property damage liability
854 coverage shall report the cancellation or nonrenewal thereof to
855 the department within 10 days after the processing date or
856 effective date of each cancellation or nonrenewal. Upon the
857 issuance of a policy providing personal injury protection
858 coverage or property damage liability coverage to a named
859 insured not previously insured by the insurer during that
860 calendar year, the insurer shall report the issuance of the new
861 policy to the department within 10 days. The report must shall
862 be in the form and format and contain any information required
863 by the department and must be provided in a format that is
864 compatible with the data processing capabilities of the
865 department. Failure by an insurer to file proper reports with
866 the department as required by this subsection constitutes a
867 violation of the Florida Insurance Code. These records may shall
868 be used by the department only for enforcement and regulatory
869 purposes, including the generation by the department of data
870 regarding compliance by owners of motor vehicles with the
871 requirements for financial responsibility coverage.
872 (b) With respect to an insurance policy providing personal
873 injury protection coverage or property damage liability
874 coverage, each insurer shall notify the named insured, or the
875 first-named insured in the case of a commercial fleet policy, in
876 writing that any cancellation or nonrenewal of the policy will
877 be reported by the insurer to the department. The notice must
878 also inform the named insured that failure to maintain bodily
879 injury liability personal injury protection coverage and
880 property damage liability coverage on a motor vehicle when
881 required by law may result in the loss of registration and
882 driving privileges in this state and inform the named insured of
883 the amount of the reinstatement fees required by this section.
884 This notice is for informational purposes only, and an insurer
885 is not civilly liable for failing to provide this notice.
886 (2) The department shall suspend, after due notice and an
887 opportunity to be heard, the registration and driver license of
888 any owner or registrant of a motor vehicle for with respect to
889 which security is required under s. 324.022, s. 324.032, s.
890 627.7415, or s. 627.742 ss. 324.022 and 627.733 upon:
891 (a) The department’s records showing that the owner or
892 registrant of such motor vehicle did not have the in full force
893 and effect when required security in full force and effect that
894 complies with the requirements of ss. 324.022 and 627.733; or
895 (b) Notification by the insurer to the department, in a
896 form approved by the department, of cancellation or termination
897 of the required security.
898 Section 15. Section 324.0222, Florida Statutes, is created
899 to read:
900 324.0222 Application of suspensions for failure to maintain
901 security; reinstatement.—All suspensions for failure to maintain
902 required security as required by law in effect before January 1,
903 2022, remain in full force and effect after January 1, 2022. A
904 driver may reinstate a suspended driver license or registration
905 as provided under s. 324.0221.
906 Section 16. Section 324.023, Florida Statutes, is amended
907 to read:
908 324.023 Financial responsibility for bodily injury or
909 death.—In addition to any other financial responsibility
910 required by law, every owner or operator of a motor vehicle that
911 is required to be registered in this state, or that is located
912 within this state, and who, regardless of adjudication of guilt,
913 has been found guilty of or entered a plea of guilty or nolo
914 contendere to a charge of driving under the influence under s.
915 316.193 after October 1, 2007, shall, by one of the methods
916 established in s. 324.031(1)(a) or (b) s. 324.031(1) or (2),
917 establish and maintain the ability to respond in damages for
918 liability on account of accidents arising out of the use of a
919 motor vehicle in the amount of $100,000 because of bodily injury
920 to, or death of, one person in any one crash and, subject to
921 such limits for one person, in the amount of $300,000 because of
922 bodily injury to, or death of, two or more persons in any one
923 crash and in the amount of $50,000 because of property damage in
924 any one crash. If the owner or operator chooses to establish and
925 maintain such ability by furnishing a certificate of deposit
926 pursuant to s. 324.031(1)(b) s. 324.031(2), such certificate of
927 deposit must be at least $350,000. Such higher limits must be
928 carried for a minimum period of 3 years. If the owner or
929 operator has not been convicted of driving under the influence
930 or a felony traffic offense for a period of 3 years from the
931 date of reinstatement of driving privileges for a violation of
932 s. 316.193, the owner or operator is shall be exempt from this
933 section.
934 Section 17. Section 324.031, Florida Statutes, is amended
935 to read:
936 324.031 Manner of proving financial responsibility.—
937 (1) The owner or operator of a taxicab, limousine, jitney,
938 or any other for-hire passenger transportation vehicle may prove
939 financial responsibility by providing satisfactory evidence of
940 holding a motor vehicle liability policy as defined in s.
941 324.021(8) or s. 324.151, which policy is issued by an insurance
942 carrier which is a member of the Florida Insurance Guaranty
943 Association. The operator or owner of a motor vehicle other than
944 a for-hire passenger transportation vehicle any other vehicle
945 may prove his or her financial responsibility by:
946 (a)(1) Furnishing satisfactory evidence of holding a motor
947 vehicle liability policy as defined in ss. 324.021(8) and
948 324.151 which provides liability coverage for the motor vehicle
949 being operated;
950 (b)(2) Furnishing a certificate of self-insurance showing a
951 deposit of cash in accordance with s. 324.161; or
952 (c)(3) Furnishing a certificate of self-insurance issued by
953 the department in accordance with s. 324.171.
954 (2) Beginning January 1, 2022, any person, including any
955 firm, partnership, association, corporation, or other person,
956 other than a natural person, electing to use the method of proof
957 specified in paragraph (1)(b) subsection (2) shall do both of
958 the following:
959 (a) Furnish a certificate of deposit equal to the number of
960 vehicles owned times $60,000 $30,000, up to a maximum of
961 $240,000. $120,000;
962 (b) In addition, any such person, other than a natural
963 person, shall Maintain insurance providing coverage that meets
964 the requirements of s. 324.151 and has limits of:
965 1. At least $125,000 for bodily injury to, or the death of,
966 one person in any one crash and, subject to such limits for one
967 person, in the amount of $250,000 for bodily injury to, or the
968 death of, two or more persons in any one crash, and $50,000 for
969 damage to, or destruction of, property of others in any one
970 crash; or
971 2. At least $300,000 for combined bodily injury liability
972 and property damage liability for any one crash in excess of
973 limits of $10,000/20,000/10,000 or $30,000 combined single
974 limits, and such excess insurance shall provide minimum limits
975 of $125,000/250,000/50,000 or $300,000 combined single limits.
976 These increased limits shall not affect the requirements for
977 proving financial responsibility under s. 324.032(1).
978 Section 18. Section 324.032, Florida Statutes, is amended
979 to read:
980 324.032 Manner of proving Financial responsibility for;
981 for-hire passenger transportation vehicles.—Notwithstanding the
982 provisions of s. 324.031:
983 (1) An owner or a lessee of a for-hire passenger
984 transportation vehicle that is required to be registered in this
985 state shall establish and continuously maintain the ability to
986 respond in damages for liability on account of accidents arising
987 out of the ownership, maintenance, or use of the for-hire
988 passenger transportation vehicle, in the amount of:
989 (a) One hundred twenty-five thousand dollars for bodily
990 injury to, or the death of, one person in any one crash and,
991 subject to such limits for one person, in the amount of $250,000
992 for bodily injury to, or the death of, two or more persons in
993 any one crash; and A person who is either the owner or a lessee
994 required to maintain insurance under s. 627.733(1)(b) and who
995 operates one or more taxicabs, limousines, jitneys, or any other
996 for-hire passenger transportation vehicles may prove financial
997 responsibility by furnishing satisfactory evidence of holding a
998 motor vehicle liability policy, but with minimum limits of
999 $125,000/250,000/50,000.
1000 (b) Fifty thousand dollars for damage to, or destruction
1001 of, property of others in any one crash A person who is either
1002 the owner or a lessee required to maintain insurance under s.
1003 324.021(9)(b) and who operates limousines, jitneys, or any other
1004 for-hire passenger vehicles, other than taxicabs, may prove
1005 financial responsibility by furnishing satisfactory evidence of
1006 holding a motor vehicle liability policy as defined in s.
1007 324.031.
1008 (2) Except as provided in subsection (3), the requirements
1009 of this section must be met by the owner or lessee providing
1010 satisfactory evidence of holding a motor vehicle liability
1011 policy conforming to the requirements of s. 324.151 which is
1012 issued by an insurance carrier that is a member of the Florida
1013 Insurance Guaranty Association.
1014 (3)(2) An owner or a lessee who is required to maintain
1015 insurance under s. 324.021(9)(b) and who operates at least 300
1016 taxicabs, limousines, jitneys, or any other for-hire passenger
1017 transportation vehicles may provide financial responsibility by
1018 complying with the provisions of s. 324.171, which must such
1019 compliance to be demonstrated by maintaining at its principal
1020 place of business an audited financial statement, prepared in
1021 accordance with generally accepted accounting principles, and
1022 providing to the department a certification issued by a
1023 certified public accountant that the applicant’s net worth is at
1024 least equal to the requirements of s. 324.171 as determined by
1025 the Office of Insurance Regulation of the Financial Services
1026 Commission, including claims liabilities in an amount certified
1027 as adequate by a Fellow of the Casualty Actuarial Society.
1028
1029 Upon request by the department, the applicant shall must provide
1030 the department at the applicant’s principal place of business in
1031 this state access to the applicant’s underlying financial
1032 information and financial statements that provide the basis of
1033 the certified public accountant’s certification. The applicant
1034 shall reimburse the requesting department for all reasonable
1035 costs incurred by it in reviewing the supporting information.
1036 The maximum amount of self-insurance permissible under this
1037 subsection is $300,000 and must be stated on a per-occurrence
1038 basis, and the applicant shall maintain adequate excess
1039 insurance issued by an authorized or eligible insurer licensed
1040 or approved by the Office of Insurance Regulation. All risks
1041 self-insured shall remain with the owner or lessee providing it,
1042 and the risks are not transferable to any other person, unless a
1043 policy complying with subsections (1) and (2) subsection (1) is
1044 obtained.
1045 Section 19. Paragraph (b) of subsection (2) of section
1046 324.051, Florida Statutes, is amended to read:
1047 324.051 Reports of crashes; suspensions of licenses and
1048 registrations.—
1049 (2)
1050 (b) This subsection does shall not apply:
1051 1. To such operator or owner if such operator or owner had
1052 in effect at the time of such crash or traffic conviction a
1053 motor vehicle an automobile liability policy with respect to all
1054 of the registered motor vehicles owned by such operator or
1055 owner.
1056 2. To such operator, if not the owner of such motor
1057 vehicle, if there was in effect at the time of such crash or
1058 traffic conviction a motor vehicle an automobile liability
1059 policy or bond with respect to his or her operation of motor
1060 vehicles not owned by him or her.
1061 3. To such operator or owner if the liability of such
1062 operator or owner for damages resulting from such crash is, in
1063 the judgment of the department, covered by any other form of
1064 liability insurance or bond.
1065 4. To any person who has obtained from the department a
1066 certificate of self-insurance, in accordance with s. 324.171, or
1067 to any person operating a motor vehicle for such self-insurer.
1068
1069 No such policy or bond shall be effective under this subsection
1070 unless it contains limits of not less than those specified in s.
1071 324.021(7).
1072 Section 20. Section 324.071, Florida Statutes, is amended
1073 to read:
1074 324.071 Reinstatement; renewal of license; reinstatement
1075 fee.—An Any operator or owner whose license or registration has
1076 been suspended pursuant to s. 324.051(2), s. 324.072, s.
1077 324.081, or s. 324.121 may effect its reinstatement upon
1078 compliance with the provisions of s. 324.051(2)(a)3. or 4., or
1079 s. 324.081(2) and (3), as the case may be, and with one of the
1080 provisions of s. 324.031 and upon payment to the department of a
1081 nonrefundable reinstatement fee of $15. Only one such fee may
1082 shall be paid by any one person regardless irrespective of the
1083 number of licenses and registrations to be then reinstated or
1084 issued to such person. All Such fees must shall be deposited to
1085 a department trust fund. If When the reinstatement of any
1086 license or registration is effected by compliance with s.
1087 324.051(2)(a)3. or 4., the department may shall not renew the
1088 license or registration within a period of 3 years after from
1089 such reinstatement, nor may shall any other license or
1090 registration be issued in the name of such person, unless the
1091 operator continues is continuing to comply with one of the
1092 provisions of s. 324.031.
1093 Section 21. Subsection (1) of section 324.091, Florida
1094 Statutes, is amended to read:
1095 324.091 Notice to department; notice to insurer.—
1096 (1) Each owner and operator involved in a crash or
1097 conviction case within the purview of this chapter shall furnish
1098 evidence of automobile liability insurance or motor vehicle
1099 liability insurance within 14 days after the date of the mailing
1100 of notice of crash by the department in the form and manner as
1101 it may designate. Upon receipt of evidence that a an automobile
1102 liability policy or motor vehicle liability policy was in effect
1103 at the time of the crash or conviction case, the department
1104 shall forward to the insurer such information for verification
1105 in a method as determined by the department. The insurer shall
1106 respond to the department within 20 days after the notice as to
1107 whether or not such information is valid. If the department
1108 determines that a an automobile liability policy or motor
1109 vehicle liability policy was not in effect and did not provide
1110 coverage for both the owner and the operator, it must shall take
1111 action as it is authorized to do under this chapter.
1112 Section 22. Section 324.151, Florida Statutes, is amended
1113 to read:
1114 324.151 Motor vehicle liability policies; required
1115 provisions.—
1116 (1) A motor vehicle liability policy that serves as to be
1117 proof of financial responsibility under s. 324.031(1)(a) must s.
1118 324.031(1), shall be issued to owners or operators of motor
1119 vehicles under the following provisions:
1120 (a) A motor vehicle An owner’s liability insurance policy
1121 issued to an owner of a motor vehicle required to be registered
1122 in this state must shall designate by explicit description or by
1123 appropriate reference all motor vehicles for with respect to
1124 which coverage is thereby granted. The policy must and shall
1125 insure the person or persons owner named therein and, except for
1126 a named driver excluded pursuant to s. 627.747, must insure any
1127 resident relative of a named insured other person as operator
1128 using such motor vehicle or motor vehicles with the express or
1129 implied permission of such owner against loss from the liability
1130 imposed by law for damage arising out of the ownership,
1131 maintenance, or use of any such motor vehicle or motor vehicles
1132 within the United States or the Dominion of Canada, subject to
1133 limits, exclusive of interest and costs with respect to each
1134 such motor vehicle as is provided for under s. 324.021(7).
1135 Except for a named driver excluded pursuant to s. 627.747, the
1136 policy must also insure any person operating an insured motor
1137 vehicle with the express or implied permission of a named
1138 insured against loss from the liability imposed by law for
1139 damage arising out of the use of any vehicle. However, the
1140 insurer may include provisions in its policy excluding liability
1141 coverage for a motor vehicle not designated as an insured
1142 vehicle on the policy if such motor vehicle does not qualify as
1143 a newly acquired vehicle or as a temporary substitute vehicle
1144 and was owned by the insured or was furnished for an insured’s
1145 regular use for more than 30 consecutive days before the event
1146 giving rise to the claim. Insurers may make available, with
1147 respect to property damage liability coverage, a deductible
1148 amount not to exceed $500. In the event of a property damage
1149 loss covered by a policy containing a property damage deductible
1150 provision, the insurer shall pay to the third-party claimant the
1151 amount of any property damage liability settlement or judgment,
1152 subject to policy limits, as if no deductible existed.
1153 (b) A motor vehicle liability insurance policy issued to a
1154 person who does not own a motor vehicle must An operator’s motor
1155 vehicle liability policy of insurance shall insure the person or
1156 persons named therein against loss from the liability imposed
1157 upon him or her by law for damages arising out of the use by the
1158 person of any motor vehicle not owned by him or her, with the
1159 same territorial limits and subject to the same limits of
1160 liability as referred to above with respect to an owner’s policy
1161 of liability insurance.
1162 (c) All such motor vehicle liability policies must provide
1163 liability coverage with limits, exclusive of interest and costs,
1164 as specified under s. 324.021(7) for accidents occurring within
1165 the United States or Canada. The policies must shall state the
1166 name and address of the named insured, the coverage afforded by
1167 the policy, the premium charged therefor, the policy period, and
1168 the limits of liability, and must shall contain an agreement or
1169 be endorsed that insurance is provided in accordance with the
1170 coverage defined in this chapter as respects bodily injury and
1171 death or property damage or both and is subject to all
1172 provisions of this chapter. The Said policies must shall also
1173 contain a provision that the satisfaction by an insured of a
1174 judgment for such injury or damage may shall not be a condition
1175 precedent to the right or duty of the insurance carrier to make
1176 payment on account of such injury or damage, and must shall also
1177 contain a provision that bankruptcy or insolvency of the insured
1178 or of the insured’s estate does shall not relieve the insurance
1179 carrier of any of its obligations under the said policy.
1180 (2) The provisions of This section is shall not be
1181 applicable to any motor vehicle automobile liability policy
1182 unless and until it is furnished as proof of financial
1183 responsibility for the future pursuant to s. 324.031, and then
1184 applies only from and after the date the said policy is so
1185 furnished.
1186 (3) As used in this section, the term:
1187 (a) “Newly acquired vehicle” means a vehicle owned by a
1188 named insured or resident relative of the named insured which
1189 was acquired no more than 30 days before an accident.
1190 (b) “Resident relative” means a person related to a named
1191 insured by any degree by blood, marriage, or adoption, including
1192 a ward or foster child, who usually makes his or her home in the
1193 same family unit or residence as the named insured, regardless
1194 of whether he or she temporarily lives elsewhere.
1195 (c) “Temporary substitute vehicle” means any motor vehicle
1196 as defined in s. 320.01(1) which is not owned by the named
1197 insured and which is temporarily used with the permission of the
1198 owner as a substitute for the owned motor vehicle designated on
1199 the policy when the owned vehicle is withdrawn from normal use
1200 because of breakdown, repair, servicing, loss, or destruction.
1201 Section 23. Section 324.161, Florida Statutes, is amended
1202 to read:
1203 324.161 Proof of financial responsibility; deposit.—If a
1204 person elects to prove his or her financial responsibility under
1205 the method of proof specified in s. 324.031(1)(b), he or she
1206 annually must obtain and submit to the department proof of a
1207 certificate of deposit in the amount required under s.
1208 324.031(2) from a financial institution insured by the Federal
1209 Deposit Insurance Corporation or the National Credit Union
1210 Administration Annually, before any certificate of insurance may
1211 be issued to a person, including any firm, partnership,
1212 association, corporation, or other person, other than a natural
1213 person, proof of a certificate of deposit of $30,000 issued and
1214 held by a financial institution must be submitted to the
1215 department. A power of attorney will be issued to and held by
1216 the department and may be executed upon a judgment issued
1217 against such person making the deposit, for damages for because
1218 of bodily injury to or death of any person or for damages for
1219 because of injury to or destruction of property resulting from
1220 the use or operation of any motor vehicle occurring after such
1221 deposit was made. Money so deposited is shall not be subject to
1222 attachment or execution unless such attachment or execution
1223 arises shall arise out of a lawsuit suit for such damages as
1224 aforesaid.
1225 Section 24. Subsections (1) and (2) of section 324.171,
1226 Florida Statutes, are amended to read:
1227 324.171 Self-insurer.—
1228 (1) A Any person may qualify as a self-insurer by obtaining
1229 a certificate of self-insurance from the department. which may,
1230 in its discretion and Upon application of such a person, the
1231 department may issue a said certificate of self-insurance to an
1232 applicant who satisfies when such person has satisfied the
1233 requirements of this section. Effective January 1, 2022 to
1234 qualify as a self-insurer under this section:
1235 (a) A private individual with private passenger vehicles
1236 shall possess a net unencumbered worth of at least $100,000
1237 $40,000.
1238 (b) A person, including any firm, partnership, association,
1239 corporation, or other person, other than a natural person,
1240 shall:
1241 1. Possess a net unencumbered worth of at least $100,000
1242 $40,000 for the first motor vehicle and $50,000 $20,000 for each
1243 additional motor vehicle; or
1244 2. Maintain sufficient net worth, in an amount determined
1245 by the department, to be financially responsible for potential
1246 losses. The department annually shall determine the minimum net
1247 worth sufficient to satisfy this subparagraph as determined
1248 annually by the department, pursuant to rules adopted
1249 promulgated by the department, with the assistance of the Office
1250 of Insurance Regulation of the Financial Services Commission, to
1251 be financially responsible for potential losses. The rules must
1252 consider any shall take into consideration excess insurance
1253 carried by the applicant. The department’s determination must
1254 shall be based upon reasonable actuarial principles considering
1255 the frequency, severity, and loss development of claims incurred
1256 by casualty insurers writing coverage on the type of motor
1257 vehicles for which a certificate of self-insurance is desired.
1258 (c) The owner of a commercial motor vehicle, as defined in
1259 s. 207.002 or s. 320.01, may qualify as a self-insurer subject
1260 to the standards provided for in subparagraph (b)2.
1261 (2) The self-insurance certificate must shall provide
1262 limits of liability insurance in the amounts specified under s.
1263 324.021(7) or s. 627.7415 and shall provide personal injury
1264 protection coverage under s. 627.733(3)(b).
1265 Section 25. Section 324.251, Florida Statutes, is amended
1266 to read:
1267 324.251 Short title.—This chapter may be cited as the
1268 “Financial Responsibility Law of 2021 1955” and is shall become
1269 effective at 12:01 a.m., January 1, 2022 October 1, 1955.
1270 Section 26. Subsection (4) of section 400.9905, Florida
1271 Statutes, is amended to read:
1272 400.9905 Definitions.—
1273 (4)(a) “Clinic” means an entity where health care services
1274 are provided to individuals and which tenders charges for
1275 reimbursement for such services, including a mobile clinic and a
1276 portable equipment provider. As used in this part, the term does
1277 not include and the licensure requirements of this part do not
1278 apply to:
1279 1.(a) Entities licensed or registered by the state under
1280 chapter 395; entities licensed or registered by the state and
1281 providing only health care services within the scope of services
1282 authorized under their respective licenses under ss. 383.30
1283 383.332, chapter 390, chapter 394, chapter 397, this chapter
1284 except part X, chapter 429, chapter 463, chapter 465, chapter
1285 466, chapter 478, chapter 484, or chapter 651; end-stage renal
1286 disease providers authorized under 42 C.F.R. part 494; providers
1287 certified and providing only health care services within the
1288 scope of services authorized under their respective
1289 certifications under 42 C.F.R. part 485, subpart B, subpart H,
1290 or subpart J; providers certified and providing only health care
1291 services within the scope of services authorized under their
1292 respective certifications under 42 C.F.R. part 486, subpart C;
1293 providers certified and providing only health care services
1294 within the scope of services authorized under their respective
1295 certifications under 42 C.F.R. part 491, subpart A; providers
1296 certified by the Centers for Medicare and Medicaid Services
1297 under the federal Clinical Laboratory Improvement Amendments and
1298 the federal rules adopted thereunder; or any entity that
1299 provides neonatal or pediatric hospital-based health care
1300 services or other health care services by licensed practitioners
1301 solely within a hospital licensed under chapter 395.
1302 2.(b) Entities that own, directly or indirectly, entities
1303 licensed or registered by the state pursuant to chapter 395;
1304 entities that own, directly or indirectly, entities licensed or
1305 registered by the state and providing only health care services
1306 within the scope of services authorized pursuant to their
1307 respective licenses under ss. 383.30-383.332, chapter 390,
1308 chapter 394, chapter 397, this chapter except part X, chapter
1309 429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1310 484, or chapter 651; end-stage renal disease providers
1311 authorized under 42 C.F.R. part 494; providers certified and
1312 providing only health care services within the scope of services
1313 authorized under their respective certifications under 42 C.F.R.
1314 part 485, subpart B, subpart H, or subpart J; providers
1315 certified and providing only health care services within the
1316 scope of services authorized under their respective
1317 certifications under 42 C.F.R. part 486, subpart C; providers
1318 certified and providing only health care services within the
1319 scope of services authorized under their respective
1320 certifications under 42 C.F.R. part 491, subpart A; providers
1321 certified by the Centers for Medicare and Medicaid Services
1322 under the federal Clinical Laboratory Improvement Amendments and
1323 the federal rules adopted thereunder; or any entity that
1324 provides neonatal or pediatric hospital-based health care
1325 services by licensed practitioners solely within a hospital
1326 licensed under chapter 395.
1327 3.(c) Entities that are owned, directly or indirectly, by
1328 an entity licensed or registered by the state pursuant to
1329 chapter 395; entities that are owned, directly or indirectly, by
1330 an entity licensed or registered by the state and providing only
1331 health care services within the scope of services authorized
1332 pursuant to their respective licenses under ss. 383.30-383.332,
1333 chapter 390, chapter 394, chapter 397, this chapter except part
1334 X, chapter 429, chapter 463, chapter 465, chapter 466, chapter
1335 478, chapter 484, or chapter 651; end-stage renal disease
1336 providers authorized under 42 C.F.R. part 494; providers
1337 certified and providing only health care services within the
1338 scope of services authorized under their respective
1339 certifications under 42 C.F.R. part 485, subpart B, subpart H,
1340 or subpart J; providers certified and providing only health care
1341 services within the scope of services authorized under their
1342 respective certifications under 42 C.F.R. part 486, subpart C;
1343 providers certified and providing only health care services
1344 within the scope of services authorized under their respective
1345 certifications under 42 C.F.R. part 491, subpart A; providers
1346 certified by the Centers for Medicare and Medicaid Services
1347 under the federal Clinical Laboratory Improvement Amendments and
1348 the federal rules adopted thereunder; or any entity that
1349 provides neonatal or pediatric hospital-based health care
1350 services by licensed practitioners solely within a hospital
1351 under chapter 395.
1352 4.(d) Entities that are under common ownership, directly
1353 or indirectly, with an entity licensed or registered by the
1354 state pursuant to chapter 395; entities that are under common
1355 ownership, directly or indirectly, with an entity licensed or
1356 registered by the state and providing only health care services
1357 within the scope of services authorized pursuant to their
1358 respective licenses under ss. 383.30-383.332, chapter 390,
1359 chapter 394, chapter 397, this chapter except part X, chapter
1360 429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1361 484, or chapter 651; end-stage renal disease providers
1362 authorized under 42 C.F.R. part 494; providers certified and
1363 providing only health care services within the scope of services
1364 authorized under their respective certifications under 42 C.F.R.
1365 part 485, subpart B, subpart H, or subpart J; providers
1366 certified and providing only health care services within the
1367 scope of services authorized under their respective
1368 certifications under 42 C.F.R. part 486, subpart C; providers
1369 certified and providing only health care services within the
1370 scope of services authorized under their respective
1371 certifications under 42 C.F.R. part 491, subpart A; providers
1372 certified by the Centers for Medicare and Medicaid Services
1373 under the federal Clinical Laboratory Improvement Amendments and
1374 the federal rules adopted thereunder; or any entity that
1375 provides neonatal or pediatric hospital-based health care
1376 services by licensed practitioners solely within a hospital
1377 licensed under chapter 395.
1378 5.(e) An entity that is exempt from federal taxation under
1379 26 U.S.C. s. 501(c)(3) or (4), an employee stock ownership plan
1380 under 26 U.S.C. s. 409 that has a board of trustees at least
1381 two-thirds of which are Florida-licensed health care
1382 practitioners and provides only physical therapy services under
1383 physician orders, any community college or university clinic,
1384 and any entity owned or operated by the federal or state
1385 government, including agencies, subdivisions, or municipalities
1386 thereof.
1387 6.(f) A sole proprietorship, group practice, partnership,
1388 or corporation that provides health care services by physicians
1389 covered by s. 627.419, that is directly supervised by one or
1390 more of such physicians, and that is wholly owned by one or more
1391 of those physicians or by a physician and the spouse, parent,
1392 child, or sibling of that physician.
1393 7.(g) A sole proprietorship, group practice, partnership,
1394 or corporation that provides health care services by licensed
1395 health care practitioners under chapter 457, chapter 458,
1396 chapter 459, chapter 460, chapter 461, chapter 462, chapter 463,
1397 chapter 466, chapter 467, chapter 480, chapter 484, chapter 486,
1398 chapter 490, chapter 491, or part I, part III, part X, part
1399 XIII, or part XIV of chapter 468, or s. 464.012, and that is
1400 wholly owned by one or more licensed health care practitioners,
1401 or the licensed health care practitioners set forth in this
1402 subparagraph paragraph and the spouse, parent, child, or sibling
1403 of a licensed health care practitioner if one of the owners who
1404 is a licensed health care practitioner is supervising the
1405 business activities and is legally responsible for the entity’s
1406 compliance with all federal and state laws. However, a health
1407 care practitioner may not supervise services beyond the scope of
1408 the practitioner’s license, except that, for the purposes of
1409 this part, a clinic owned by a licensee in s. 456.053(3)(b)
1410 which provides only services authorized pursuant to s.
1411 456.053(3)(b) may be supervised by a licensee specified in s.
1412 456.053(3)(b).
1413 8.(h) Clinical facilities affiliated with an accredited
1414 medical school at which training is provided for medical
1415 students, residents, or fellows.
1416 9.(i) Entities that provide only oncology or radiation
1417 therapy services by physicians licensed under chapter 458 or
1418 chapter 459 or entities that provide oncology or radiation
1419 therapy services by physicians licensed under chapter 458 or
1420 chapter 459 which are owned by a corporation whose shares are
1421 publicly traded on a recognized stock exchange.
1422 10.(j) Clinical facilities affiliated with a college of
1423 chiropractic accredited by the Council on Chiropractic Education
1424 at which training is provided for chiropractic students.
1425 11.(k) Entities that provide licensed practitioners to
1426 staff emergency departments or to deliver anesthesia services in
1427 facilities licensed under chapter 395 and that derive at least
1428 90 percent of their gross annual revenues from the provision of
1429 such services. Entities claiming an exemption from licensure
1430 under this subparagraph paragraph must provide documentation
1431 demonstrating compliance.
1432 12.(l) Orthotic, prosthetic, pediatric cardiology, or
1433 perinatology clinical facilities or anesthesia clinical
1434 facilities that are not otherwise exempt under subparagraph 1.
1435 or subparagraph 11. paragraph (a) or paragraph (k) and that are
1436 a publicly traded corporation or are wholly owned, directly or
1437 indirectly, by a publicly traded corporation. As used in this
1438 subparagraph paragraph, a publicly traded corporation is a
1439 corporation that issues securities traded on an exchange
1440 registered with the United States Securities and Exchange
1441 Commission as a national securities exchange.
1442 13.(m) Entities that are owned by a corporation that has
1443 $250 million or more in total annual sales of health care
1444 services provided by licensed health care practitioners where
1445 one or more of the persons responsible for the operations of the
1446 entity is a health care practitioner who is licensed in this
1447 state and who is responsible for supervising the business
1448 activities of the entity and is responsible for the entity’s
1449 compliance with state law for purposes of this part.
1450 14.(n) Entities that employ 50 or more licensed health care
1451 practitioners licensed under chapter 458 or chapter 459 where
1452 the billing for medical services is under a single tax
1453 identification number. The application for exemption under this
1454 subsection must include shall contain information that includes:
1455 the name, residence, and business address and telephone phone
1456 number of the entity that owns the practice; a complete list of
1457 the names and contact information of all the officers and
1458 directors of the corporation; the name, residence address,
1459 business address, and medical license number of each licensed
1460 Florida health care practitioner employed by the entity; the
1461 corporate tax identification number of the entity seeking an
1462 exemption; a listing of health care services to be provided by
1463 the entity at the health care clinics owned or operated by the
1464 entity; and a certified statement prepared by an independent
1465 certified public accountant which states that the entity and the
1466 health care clinics owned or operated by the entity have not
1467 received payment for health care services under medical payments
1468 personal injury protection insurance coverage for the preceding
1469 year. If the agency determines that an entity that which is
1470 exempt under this subsection has received payments for medical
1471 services under medical payments personal injury protection
1472 insurance coverage, the agency may deny or revoke the exemption
1473 from licensure under this subsection.
1474 15.(o) Entities that are, directly or indirectly, under the
1475 common ownership of or that are subject to common control by a
1476 mutual insurance holding company, as defined in s. 628.703, with
1477 an entity issued a certificate of authority under chapter 624 or
1478 chapter 641 which has $1 billion or more in total annual sales
1479 in this state.
1480 16.(p) Entities that are owned by an entity that is a
1481 behavioral health care service provider in at least five other
1482 states; that, together with its affiliates, have $90 million or
1483 more in total annual revenues associated with the provision of
1484 behavioral health care services; and wherein one or more of the
1485 persons responsible for the operations of the entity is a health
1486 care practitioner who is licensed in this state, who is
1487 responsible for supervising the business activities of the
1488 entity, and who is responsible for the entity’s compliance with
1489 state law for purposes of this part.
1490 17.(q) Medicaid providers.
1491 (b) Notwithstanding paragraph (a) this subsection, an
1492 entity is shall be deemed a clinic and must be licensed under
1493 this part in order to receive medical payments coverage
1494 reimbursement under s. 627.7265 unless the entity is:
1495 1. Wholly owned by a physician licensed under chapter 458
1496 or chapter 459, or by the physician and the spouse, parent,
1497 child, or sibling of the physician;
1498 2. Wholly owned by a dentist licensed under chapter 466, or
1499 by the dentist and the spouse, parent, child, or sibling of the
1500 dentist;
1501 3. Wholly owned by a chiropractic physician licensed under
1502 chapter 460, or by the chiropractic physician and the spouse,
1503 parent, child, or sibling of the chiropractic physician;
1504 4. A hospital or ambulatory surgical center licensed under
1505 chapter 395;
1506 5. An entity that wholly owns or is wholly owned, directly
1507 or indirectly, by a hospital or hospitals licensed under chapter
1508 395;
1509 6. A clinical facility affiliated with an accredited
1510 medical school at which training is provided for medical
1511 students, residents, or fellows;
1512 7. Certified under 42 C.F.R. part 485, subpart H; or
1513 8. Owned by a publicly traded corporation, either directly
1514 or indirectly through its subsidiaries, which has $250 million
1515 or more in total annual sales of health care services provided
1516 by licensed health care practitioners, if one or more of the
1517 persons responsible for the operations of the entity are health
1518 care practitioners who are licensed in this state and are
1519 responsible for supervising the business activities of the
1520 entity and the entity’s compliance with state law for purposes
1521 of this subsection the Florida Motor Vehicle No-Fault Law, ss.
1522 627.730-627.7405, unless exempted under s. 627.736(5)(h).
1523 Section 27. Subsection (5) of section 400.991, Florida
1524 Statutes, is amended to read:
1525 400.991 License requirements; background screenings;
1526 prohibitions.—
1527 (5) All agency forms for licensure application or exemption
1528 from licensure under this part must contain the following
1529 statement:
1530
1531 INSURANCE FRAUD NOTICE.—A person commits a fraudulent
1532 insurance act, as defined in s. 626.989, Florida
1533 Statutes, if the person who knowingly submits a false,
1534 misleading, or fraudulent application or other
1535 document when applying for licensure as a health care
1536 clinic, seeking an exemption from licensure as a
1537 health care clinic, or demonstrating compliance with
1538 part X of chapter 400, Florida Statutes, with the
1539 intent to use the license, exemption from licensure,
1540 or demonstration of compliance to provide services or
1541 seek reimbursement under a motor vehicle liability
1542 insurance policy’s medical payments coverage the
1543 Florida Motor Vehicle No-Fault Law, commits a
1544 fraudulent insurance act, as defined in s. 626.989,
1545 Florida Statutes. A person who presents a claim for
1546 benefits under medical payments coverage personal
1547 injury protection benefits knowing that the payee
1548 knowingly submitted such health care clinic
1549 application or document, commits insurance fraud, as
1550 defined in s. 817.234, Florida Statutes.
1551 Section 28. Paragraph (g) of subsection (1) of section
1552 400.9935, Florida Statutes, is amended to read:
1553 400.9935 Clinic responsibilities.—
1554 (1) Each clinic shall appoint a medical director or clinic
1555 director who shall agree in writing to accept legal
1556 responsibility for the following activities on behalf of the
1557 clinic. The medical director or the clinic director shall:
1558 (g) Conduct systematic reviews of clinic billings to ensure
1559 that the billings are not fraudulent or unlawful. Upon discovery
1560 of an unlawful charge, the medical director or clinic director
1561 shall take immediate corrective action. If the clinic performs
1562 only the technical component of magnetic resonance imaging,
1563 static radiographs, computed tomography, or positron emission
1564 tomography, and provides the professional interpretation of such
1565 services, in a fixed facility that is accredited by a national
1566 accrediting organization that is approved by the Centers for
1567 Medicare and Medicaid Services for magnetic resonance imaging
1568 and advanced diagnostic imaging services and if, in the
1569 preceding quarter, the percentage of scans performed by that
1570 clinic which was billed to motor vehicle all personal injury
1571 protection insurance carriers under medical payments coverage
1572 was less than 15 percent, the chief financial officer of the
1573 clinic may, in a written acknowledgment provided to the agency,
1574 assume the responsibility for the conduct of the systematic
1575 reviews of clinic billings to ensure that the billings are not
1576 fraudulent or unlawful.
1577 Section 29. Subsection (28) of section 409.901, Florida
1578 Statutes, is amended to read:
1579 409.901 Definitions; ss. 409.901-409.920.—As used in ss.
1580 409.901-409.920, except as otherwise specifically provided, the
1581 term:
1582 (28) “Third-party benefit” means any benefit that is or may
1583 be available at any time through contract, court award,
1584 judgment, settlement, agreement, or any arrangement between a
1585 third party and any person or entity, including, without
1586 limitation, a Medicaid recipient, a provider, another third
1587 party, an insurer, or the agency, for any Medicaid-covered
1588 injury, illness, goods, or services, including costs of medical
1589 services related thereto, for bodily personal injury or for
1590 death of the recipient, but specifically excluding policies of
1591 life insurance policies on the recipient, unless available under
1592 terms of the policy to pay medical expenses before prior to
1593 death. The term includes, without limitation, collateral, as
1594 defined in this section;, health insurance;, any benefit under a
1595 health maintenance organization, a preferred provider
1596 arrangement, a prepaid health clinic, liability insurance,
1597 uninsured motorist insurance, or medical payments coverage; or
1598 personal injury protection coverage, medical benefits under
1599 workers’ compensation, and any obligation under law or equity to
1600 provide medical support.
1601 Section 30. Paragraph (f) of subsection (11) of section
1602 409.910, Florida Statutes, is amended to read:
1603 409.910 Responsibility for payments on behalf of Medicaid
1604 eligible persons when other parties are liable.—
1605 (11) The agency may, as a matter of right, in order to
1606 enforce its rights under this section, institute, intervene in,
1607 or join any legal or administrative proceeding in its own name
1608 in one or more of the following capacities: individually, as
1609 subrogee of the recipient, as assignee of the recipient, or as
1610 lienholder of the collateral.
1611 (f) Notwithstanding any provision in this section to the
1612 contrary, in the event of an action in tort against a third
1613 party in which the recipient or his or her legal representative
1614 is a party which results in a judgment, award, or settlement
1615 from a third party, the amount recovered shall be distributed as
1616 follows:
1617 1. After attorney attorney’s fees and taxable costs as
1618 defined by the Florida Rules of Civil Procedure, one-half of the
1619 remaining recovery shall be paid to the agency up to the total
1620 amount of medical assistance provided by Medicaid.
1621 2. The remaining amount of the recovery shall be paid to
1622 the recipient.
1623 3. For purposes of calculating the agency’s recovery of
1624 medical assistance benefits paid, the fee for services of an
1625 attorney retained by the recipient or his or her legal
1626 representative shall be calculated at 25 percent of the
1627 judgment, award, or settlement.
1628 4. Notwithstanding any other provision of this section to
1629 the contrary, the agency shall be entitled to all medical
1630 coverage benefits up to the total amount of medical assistance
1631 provided by Medicaid. For purposes of this paragraph, the term
1632 “medical coverage” means any benefits under health insurance, a
1633 health maintenance organization, a preferred provider
1634 arrangement, or a prepaid health clinic, and the portion of
1635 benefits designated for medical payments under coverage for
1636 workers’ compensation coverage, motor vehicle insurance
1637 coverage, personal injury protection, and casualty coverage.
1638 Section 31. Paragraph (k) of subsection (2) of section
1639 456.057, Florida Statutes, is amended to read:
1640 456.057 Ownership and control of patient records; report or
1641 copies of records to be furnished; disclosure of information.—
1642 (2) As used in this section, the terms “records owner,”
1643 “health care practitioner,” and “health care practitioner’s
1644 employer” do not include any of the following persons or
1645 entities; furthermore, the following persons or entities are not
1646 authorized to acquire or own medical records, but are authorized
1647 under the confidentiality and disclosure requirements of this
1648 section to maintain those documents required by the part or
1649 chapter under which they are licensed or regulated:
1650 (k) Persons or entities practicing under s. 627.7265 s.
1651 627.736(7).
1652 Section 32. Paragraphs (ee) and (ff) of subsection (1) of
1653 section 456.072, Florida Statutes, are amended to read:
1654 456.072 Grounds for discipline; penalties; enforcement.—
1655 (1) The following acts shall constitute grounds for which
1656 the disciplinary actions specified in subsection (2) may be
1657 taken:
1658 (ee) With respect to making a medical payments coverage
1659 personal injury protection claim under s. 627.7265 as required
1660 by s. 627.736, intentionally submitting a claim, statement, or
1661 bill that has been upcoded. As used in this paragraph, the term
1662 “upcoded” means an action that submits a billing code that would
1663 result in a greater payment amount than would be paid using a
1664 billing code that accurately describes the services performed.
1665 The term does not include an otherwise lawful bill by a magnetic
1666 resonance imaging facility which globally combines both
1667 technical and professional components, if the amount of the
1668 global bill is not more than the components if billed
1669 separately; however, payment of such a bill constitutes payment
1670 in full for all components of such service “upcoded” as defined
1671 in s. 627.732.
1672 (ff) With respect to making a medical payments coverage
1673 personal injury protection claim pursuant to s. 627.7265 as
1674 required by s. 627.736, intentionally submitting a claim,
1675 statement, or bill for payment of services that were not
1676 rendered.
1677 Section 33. Subsections (5) and (8) of section 624.155,
1678 Florida Statutes, are amended to read:
1679 624.155 Civil remedy.—
1680 (5) No punitive damages shall be awarded under this section
1681 unless the civil action is not subject to s. 624.156 and the
1682 acts giving rise to the violation occur with such frequency as
1683 to indicate a general business practice and these acts are:
1684 (a) Willful, wanton, and malicious;
1685 (b) In reckless disregard for the rights of any insured; or
1686 (c) In reckless disregard for the rights of a beneficiary
1687 under a life insurance contract.
1688
1689 Any person who pursues a claim under this subsection shall post
1690 in advance the costs of discovery. Such costs shall be awarded
1691 to the authorized insurer if no punitive damages are awarded to
1692 the plaintiff.
1693 (8) The civil remedy specified in this section does not
1694 preempt any other remedy or cause of action provided for
1695 pursuant to any other statute or pursuant to the common law of
1696 this state. A Any person is may obtain a judgment under either
1697 the common-law remedy of bad faith or this statutory remedy, but
1698 shall not be entitled to a judgment under multiple bad faith
1699 both remedies, whether under statute or common law. This section
1700 shall not be construed to create a common-law cause of action.
1701 The damages recoverable pursuant to this section shall include
1702 those damages which are a reasonably foreseeable result of a
1703 specified violation of this section by the authorized insurer
1704 and may include an award or judgment in an amount that exceeds
1705 the policy limits.
1706 Section 34. Section 624.156, Florida Statutes, is created
1707 to read:
1708 624.156 Bad faith failure to settle actions against motor
1709 vehicle insurers.—
1710 (1) SCOPE.—
1711 (a) Except as provided in paragraph (b), this section
1712 applies in all actions for bad faith failure to settle, whether
1713 under statute or common law, against any insurer for a loss
1714 arising out of the ownership, maintenance, or use of a motor
1715 vehicle operated or principally garaged in this state at the
1716 time of an accident, regardless of whether the insurer is
1717 authorized to do business in this state or issued a policy in
1718 this state.
1719 (b) Subsections (5)-(10) and (13) apply only to third-party
1720 bad faith failure to settle actions not brought pursuant to s.
1721 624.155 against any insurer for a loss arising out of the
1722 ownership, maintenance, or use of a motor vehicle operated or
1723 principally garaged in this state at the time of an accident,
1724 regardless of whether the insurer is authorized to do business
1725 in this state or issued a policy in this state.
1726 (2) DUTY OF GOOD FAITH.—In handling claims, an insurer
1727 stands as a fiduciary for its insured and must handle claims in
1728 good faith. The insurer shall comply with the best practice
1729 standards of subsection (4) using the same degree of care and
1730 diligence as a person of ordinary care and prudence would
1731 exercise in the management of his or her own business.
1732 (3) BAD FAITH FAILURE TO SETTLE.—“Bad faith failure to
1733 settle” means an insurer’s failure to settle a claim when, under
1734 all the circumstances, it could and should have done so, had it
1735 acted fairly and honestly toward its insured and with due regard
1736 for the insured’s interests.
1737 (4) BEST PRACTICE STANDARDS.—Upon the earlier of receiving
1738 notice of a claim or, under subsection (6), a demand for
1739 settlement, an insurer must do all of the following:
1740 (a) Assign a duly licensed and appointed insurance adjuster
1741 to investigate the claim and resolve any questions concerning
1742 the existence or extent of the insured’s coverage.
1743 (b) Evaluate every claim fairly, honestly, and with due
1744 regard for the interests of its insured, consider the full
1745 extent of the claimant’s recoverable damages, and consider the
1746 information in a reasonable and prudent manner.
1747 (c) Request from the insured or claimant additional
1748 relevant information deemed necessary.
1749 (d) Conduct all verbal and written communications with the
1750 utmost honesty and complete candor.
1751 (e) Make reasonable efforts to explain to nonattorneys
1752 matters requiring expertise beyond the level normally expected
1753 of a layperson with no training in insurance or claims-handling
1754 issues.
1755 (f) Save all written communications and note and save all
1756 verbal communications in a reasonable manner.
1757 (g) Provide the insured, upon request, with all
1758 nonprivileged communications related to the insurer’s handling
1759 of the claim.
1760 (h) Provide, at the insurer’s expense, reasonable
1761 accommodations necessary to communicate effectively with an
1762 insured covered under the Americans with Disabilities Act.
1763 (i) In handling first-party claims, communicate to an
1764 insured:
1765 1. Information on who is adjusting the claim;
1766 2. Any issues that may impair the insured’s coverage;
1767 3. Information that might resolve the issue in a prompt
1768 manner;
1769 4. Any basis for the insurer’s rejection or nonacceptance
1770 of any settlement offer; and
1771 5. Any needed extensions to respond to a time-limited
1772 settlement offer.
1773 (j) In handling third-party claims, communicate to an
1774 insured:
1775 1. The identity of any other person or entity the insurer
1776 knows may be liable;
1777 2. The insurer’s activity on and evaluation of the claim;
1778 3. The likelihood and possible extent of an excess
1779 judgment;
1780 4. Steps the insured can take to avoid exposure to an
1781 excess judgment;
1782 5. Requests for examinations under oath and an explanation
1783 of the consequences of an insured’s failure to submit to an
1784 examination under oath; and
1785 6. Any demands for settlement under subsection (6) or
1786 settlement offers.
1787 (k) When a loss involves multiple claimants and the
1788 claimants are unwilling to settle cumulatively within the policy
1789 limits and release the insured from further liability, in
1790 addition to fulfilling the requirements of paragraphs (a)-(j),
1791 attempt to minimize the risk of excess judgments against the
1792 insured and settle as many claims as possible within the policy
1793 limits in exchange for a release of the insured from further
1794 liability.
1795 (5) CONDITIONS PRECEDENT.—Except for actions filed under s.
1796 624.155, it is a condition precedent to filing a third-party
1797 action for bad faith failure to settle against an insurer that
1798 the claimant must:
1799 (a) Serve a demand for settlement, as provided in
1800 subsection (6), within the insurer’s limits of liability in
1801 exchange for a release of further liability against the insured;
1802 and
1803 (b) Obtain a final judgment in excess of the policy limits
1804 against the insured.
1805 (6) DEMAND FOR SETTLEMENT.—A demand for settlement must do
1806 all of the following:
1807 (a) Identify the:
1808 1. Date and location of loss;
1809 2. Name, address, and date of birth of the claimant;
1810 3. Name of each insured to whom the demand for settlement
1811 is directed; and
1812 4. Legal and factual basis of the claim.
1813 (b) Provide a reasonably detailed description of the
1814 claimant’s:
1815 1. Known injuries caused or aggravated by the incident on
1816 which the claim is based;
1817 2. Medical treatment causally related to the incident on
1818 which the claim is based; and
1819 3. Type and amount of known damages incurred and, if any,
1820 the damages the claimant reasonably anticipates incurring in the
1821 future.
1822 (c) State the amount of the demand for settlement.
1823 (d) State whether the demand for settlement is conditioned
1824 on the completion of an examination under oath, as authorized by
1825 subsection (8).
1826 (e) Provide a physical address, an e-mail address, and a
1827 facsimile number for further communications, including, but not
1828 limited to, responses to the demand for settlement.
1829 (f) Release the insured from any further liability upon the
1830 insurer’s acceptance of a demand for settlement which is not
1831 withdrawn pursuant to paragraph (8)(e) or paragraph (8)(g), or
1832 accepted pursuant to paragraph (8)(f).
1833 (g) Be served upon the insurer by certified mail at the
1834 address designated by the insurer with the Department of
1835 Financial Services under s. 624.422(2).
1836 (7) LIMITATIONS ON CONDITIONS OF ACCEPTANCE OF A DEMAND.—A
1837 claimant may not place any conditions on acceptance of a demand
1838 for settlement other than electing the right to examine the
1839 insured under oath regarding any of the following:
1840 (a) Whether the insured has the ability to satisfy a claim
1841 for damages in excess of the insurer’s limits of liability.
1842 (b) Whether any other person or entity may have actual or
1843 potential direct or vicarious liability for the insured’s
1844 negligence.
1845 (c) Whether any other insurance exists which may cover some
1846 or all of the damages sustained by the claimant.
1847 (8) EXAMINATION UNDER OATH.—After serving a demand for
1848 settlement, a claimant may examine the insured under oath, on
1849 one occasion for a period of time not to exceed 2 hours,
1850 regarding only the issues in subsection (7).
1851 (a) The claimant may request that the insured bring to the
1852 examination relevant documents in the insured’s possession,
1853 custody, or control, including, but not limited to, credit
1854 reports, insurance policies, bank statements, tax returns,
1855 deeds, titles, and other proof of assets or liabilities.
1856 (b) The claimant may not examine the insured regarding
1857 liability.
1858 (c) The claimant, the insurer, and the insured shall
1859 cooperate in scheduling the examination under oath. The insurer
1860 shall notify the insured of the date, time, and location of the
1861 examination under oath.
1862 (d) The examination under oath must occur within 30 days
1863 after the insurer’s acceptance of the settlement demand.
1864 (e) The claimant may withdraw the demand for settlement if
1865 the insured refuses to submit to an examination under oath.
1866 (f) If the insured refuses to submit to an examination
1867 under oath, the insurer may accept the demand for settlement
1868 without requiring a release of the insured. An insurer that
1869 accepts the demand for settlement pursuant to this paragraph
1870 does not have any further duty to defend the insured and may not
1871 be held liable for damages to the insured if the claimant
1872 thereafter obtains an excess judgment against the insured.
1873 (g) Within 7 days after the examination under oath, the
1874 claimant may withdraw the demand for settlement.
1875 (9) SAFE HARBOR.—In all third-party actions for bad faith
1876 failure to settle not brought under s. 624.155, an insurer may
1877 not be held liable if it tenders its policy limits within 30
1878 days of receiving a demand for settlement under subsection (6).
1879 (10) RELEASE.—An insurer that accepts a demand for
1880 settlement under subsection (6) shall be entitled to a release
1881 of its insured, except as provided in paragraph (8)(f).
1882 (11) BURDEN OF PROOF.—In any action for bad faith failure
1883 to settle, whether under statute or common law, the claimant
1884 must prove by the preponderance of the evidence that the insurer
1885 violated its duty of good faith under subsection (2) and that
1886 the insurer in bad faith failed to settle, as defined in
1887 subsection (3).
1888 (a) In determining whether an insurer violated its duty of
1889 good faith under subsection (2) and in bad faith failed to
1890 settle, as defined in subsection (3), the trier of fact shall
1891 consider all of the following:
1892 1. Whether the insurer complied with the best practice
1893 standards of subsection (4) using the same degree of care and
1894 diligence as a person of ordinary care and prudence would
1895 exercise in the management of his or her own business.
1896 2. Whether the insurer failed to settle a claim when, under
1897 all the circumstances, it could and should have done so, had it
1898 acted fairly and honestly toward its insured and with due regard
1899 for the insured’s interests.
1900 3. Whether the claimant or insured failed to provide
1901 relevant information to the insurer on a timely basis.
1902 4. Whether the claimant or insured misrepresented material
1903 facts to the insurer or made material omissions of fact to the
1904 insurer.
1905 5. In third-party bad faith failure to settle actions not
1906 brought under s. 624.155, whether the insured denied liability
1907 or requested that the case be defended after the insurer fully
1908 advised the insured as to the facts and risks.
1909 6. In third-party bad faith failure to settle actions not
1910 brought under s. 624.155, whether the insurer timely informed
1911 the insured of a demand to settle within the limits of coverage,
1912 the right to retain personal counsel, and the risk of
1913 litigation.
1914 7. The insurer’s willingness to negotiate with the claimant
1915 in anticipation of settlement.
1916 8. The amount of damages the claimant incurred or was
1917 likely to incur in the future under the facts known or
1918 reasonably available at the time of the insurer’s response.
1919 9. If applicable, whether there were multiple third-party
1920 claimants seeking, in the aggregate, compensation in excess of
1921 the policy limits from the insured; and, if so, whether the
1922 insurer breached its duty to attempt to minimize the magnitude
1923 of possible excess judgments against the insured and to attempt
1924 to settle as many claims as possible within the policy limits in
1925 exchange for a release of the insured from further liability.
1926 10. Additional factors that the court determines to be
1927 relevant.
1928 (b) The trier of fact, in determining whether an insurer in
1929 bad faith failed to settle, must be informed that an excess
1930 judgment occurred but may not be informed of the amount of the
1931 excess judgment.
1932 (12) DAMAGES.—An insurer that is found to have violated its
1933 duty of good faith under subsection (2) and in bad faith failed
1934 to settle, as defined in subsection (3), is liable for the
1935 amount of any excess judgment. No other damages are permitted in
1936 a bad faith failure to settle action, whether under statute or
1937 common law. A party may not claim punitive damages for bad faith
1938 failure to settle, whether under statute or common law.
1939 (13) ENFORCEMENT.—If a judgment creditor has served a
1940 demand for settlement under subsection (6), and the judgment
1941 exceeds the insured’s limits of liability, the judgment creditor
1942 must be subrogated to the rights of the insured against the
1943 insurer for common law bad faith.
1944 (14) LIMITATION ON MULTIPLE REMEDIES.—A person is not
1945 entitled to a judgment under multiple bad faith remedies,
1946 whether under statute or common law.
1947 (15) APPLICATION OF S. 624.155.—The provisions of s.
1948 624.155 are applicable in all cases brought pursuant to that
1949 section, except as modified by this section.
1950 Section 35. Paragraphs (i) and (o) of subsection (1) of
1951 section 626.9541, Florida Statutes, are amended to read:
1952 626.9541 Unfair methods of competition and unfair or
1953 deceptive acts or practices defined.—
1954 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1955 ACTS.—The following are defined as unfair methods of competition
1956 and unfair or deceptive acts or practices:
1957 (i) Unfair claim settlement practices.—
1958 1. Attempting to settle claims on the basis of an
1959 application, when serving as a binder or intended to become a
1960 part of the policy, or any other material document which was
1961 altered without notice to, or knowledge or consent of, the
1962 insured;
1963 2. Making a material misrepresentation made to an insured
1964 or any other person having an interest in the proceeds payable
1965 under such contract or policy, for the purpose and with the
1966 intent of effecting settlement of such claims, loss, or damage
1967 under such contract or policy on less favorable terms than those
1968 provided in, and contemplated by, such contract or policy; or
1969 3. Committing or performing with such frequency as to
1970 indicate a general business practice any of the following:
1971 a. Failing to adopt and implement standards for the proper
1972 investigation of claims;
1973 b. Misrepresenting pertinent facts or insurance policy
1974 provisions relating to coverages at issue;
1975 c. Failing to acknowledge and act promptly upon
1976 communications with respect to claims;
1977 d. Denying claims without conducting reasonable
1978 investigations based upon available information;
1979 e. Failing to affirm or deny full or partial coverage of
1980 claims, and, as to partial coverage, the dollar amount or extent
1981 of coverage, or failing to provide a written statement that the
1982 claim is being investigated, upon the written request of the
1983 insured within 30 days after proof-of-loss statements have been
1984 completed;
1985 f. Failing to promptly provide a reasonable explanation in
1986 writing to the insured of the basis in the insurance policy, in
1987 relation to the facts or applicable law, for denial of a claim
1988 or for the offer of a compromise settlement;
1989 g. Failing to promptly notify the insured of any additional
1990 information necessary for the processing of a claim; or
1991 h. Failing to clearly explain the nature of the requested
1992 information and the reasons why such information is necessary.
1993 i. Failing to pay personal injury protection insurance
1994 claims within the time periods required by s. 627.736(4)(b). The
1995 office may order the insurer to pay restitution to a
1996 policyholder, medical provider, or other claimant, including
1997 interest at a rate consistent with the amount set forth in s.
1998 55.03(1), for the time period within which an insurer fails to
1999 pay claims as required by law. Restitution is in addition to any
2000 other penalties allowed by law, including, but not limited to,
2001 the suspension of the insurer’s certificate of authority.
2002 4. Failing to pay undisputed amounts of partial or full
2003 benefits owed under first-party property insurance policies
2004 within 90 days after an insurer receives notice of a residential
2005 property insurance claim, determines the amounts of partial or
2006 full benefits, and agrees to coverage, unless payment of the
2007 undisputed benefits is prevented by an act of God, prevented by
2008 the impossibility of performance, or due to actions by the
2009 insured or claimant that constitute fraud, lack of cooperation,
2010 or intentional misrepresentation regarding the claim for which
2011 benefits are owed.
2012 (o) Illegal dealings in premiums; excess or reduced charges
2013 for insurance.—
2014 1. Knowingly collecting any sum as a premium or charge for
2015 insurance, which is not then provided, or is not in due course
2016 to be provided, subject to acceptance of the risk by the
2017 insurer, by an insurance policy issued by an insurer as
2018 permitted by this code.
2019 2. Knowingly collecting as a premium or charge for
2020 insurance any sum in excess of or less than the premium or
2021 charge applicable to such insurance, in accordance with the
2022 applicable classifications and rates as filed with and approved
2023 by the office, and as specified in the policy; or, in cases when
2024 classifications, premiums, or rates are not required by this
2025 code to be so filed and approved, premiums and charges collected
2026 from a Florida resident in excess of or less than those
2027 specified in the policy and as fixed by the insurer.
2028 Notwithstanding any other provision of law, this provision shall
2029 not be deemed to prohibit the charging and collection, by
2030 surplus lines agents licensed under part VIII of this chapter,
2031 of the amount of applicable state and federal taxes, or fees as
2032 authorized by s. 626.916(4), in addition to the premium required
2033 by the insurer or the charging and collection, by licensed
2034 agents, of the exact amount of any discount or other such fee
2035 charged by a credit card facility in connection with the use of
2036 a credit card, as authorized by subparagraph (q)3., in addition
2037 to the premium required by the insurer. This subparagraph shall
2038 not be construed to prohibit collection of a premium for a
2039 universal life or a variable or indeterminate value insurance
2040 policy made in accordance with the terms of the contract.
2041 3.a. Imposing or requesting an additional premium for
2042 bodily injury liability coverage, property damage liability
2043 coverage a policy of motor vehicle liability, personal injury
2044 protection, medical payments coverage payment, or collision
2045 coverage in a motor vehicle liability insurance policy insurance
2046 or any combination thereof or refusing to renew the policy
2047 solely because the insured was involved in a motor vehicle
2048 accident unless the insurer’s file contains information from
2049 which the insurer in good faith determines that the insured was
2050 substantially at fault in the accident.
2051 b. An insurer which imposes and collects such a surcharge
2052 or which refuses to renew such policy shall, in conjunction with
2053 the notice of premium due or notice of nonrenewal, notify the
2054 named insured that he or she is entitled to reimbursement of
2055 such amount or renewal of the policy under the conditions listed
2056 below and will subsequently reimburse him or her or renew the
2057 policy, if the named insured demonstrates that the operator
2058 involved in the accident was:
2059 (I) Lawfully parked;
2060 (II) Reimbursed by, or on behalf of, a person responsible
2061 for the accident or has a judgment against such person;
2062 (III) Struck in the rear by another vehicle headed in the
2063 same direction and was not convicted of a moving traffic
2064 violation in connection with the accident;
2065 (IV) Hit by a “hit-and-run” driver, if the accident was
2066 reported to the proper authorities within 24 hours after
2067 discovering the accident;
2068 (V) Not convicted of a moving traffic violation in
2069 connection with the accident, but the operator of the other
2070 automobile involved in such accident was convicted of a moving
2071 traffic violation;
2072 (VI) Finally adjudicated not to be liable by a court of
2073 competent jurisdiction;
2074 (VII) In receipt of a traffic citation which was dismissed
2075 or nolle prossed; or
2076 (VIII) Not at fault as evidenced by a written statement
2077 from the insured establishing facts demonstrating lack of fault
2078 which are not rebutted by information in the insurer’s file from
2079 which the insurer in good faith determines that the insured was
2080 substantially at fault.
2081 c. In addition to the other provisions of this
2082 subparagraph, an insurer may not fail to renew a policy if the
2083 insured has had only one accident in which he or she was at
2084 fault within the current 3-year period. However, an insurer may
2085 nonrenew a policy for reasons other than accidents in accordance
2086 with s. 627.728. This subparagraph does not prohibit nonrenewal
2087 of a policy under which the insured has had three or more
2088 accidents, regardless of fault, during the most recent 3-year
2089 period.
2090 4. Imposing or requesting an additional premium for, or
2091 refusing to renew, a policy for motor vehicle insurance solely
2092 because the insured committed a noncriminal traffic infraction
2093 as described in s. 318.14 unless the infraction is:
2094 a. A second infraction committed within an 18-month period,
2095 or a third or subsequent infraction committed within a 36-month
2096 period.
2097 b. A violation of s. 316.183, when such violation is a
2098 result of exceeding the lawful speed limit by more than 15 miles
2099 per hour.
2100 5. Upon the request of the insured, the insurer and
2101 licensed agent shall supply to the insured the complete proof of
2102 fault or other criteria which justifies the additional charge or
2103 cancellation.
2104 6. No insurer shall impose or request an additional premium
2105 for motor vehicle insurance, cancel or refuse to issue a policy,
2106 or refuse to renew a policy because the insured or the applicant
2107 is a handicapped or physically disabled person, so long as such
2108 handicap or physical disability does not substantially impair
2109 such person’s mechanically assisted driving ability.
2110 7. No insurer may cancel or otherwise terminate any
2111 insurance contract or coverage, or require execution of a
2112 consent to rate endorsement, during the stated policy term for
2113 the purpose of offering to issue, or issuing, a similar or
2114 identical contract or coverage to the same insured with the same
2115 exposure at a higher premium rate or continuing an existing
2116 contract or coverage with the same exposure at an increased
2117 premium.
2118 8. No insurer may issue a nonrenewal notice on any
2119 insurance contract or coverage, or require execution of a
2120 consent to rate endorsement, for the purpose of offering to
2121 issue, or issuing, a similar or identical contract or coverage
2122 to the same insured at a higher premium rate or continuing an
2123 existing contract or coverage at an increased premium without
2124 meeting any applicable notice requirements.
2125 9. No insurer shall, with respect to premiums charged for
2126 motor vehicle insurance, unfairly discriminate solely on the
2127 basis of age, sex, marital status, or scholastic achievement.
2128 10. Imposing or requesting an additional premium for motor
2129 vehicle comprehensive or uninsured motorist coverage solely
2130 because the insured was involved in a motor vehicle accident or
2131 was convicted of a moving traffic violation.
2132 11. No insurer shall cancel or issue a nonrenewal notice on
2133 any insurance policy or contract without complying with any
2134 applicable cancellation or nonrenewal provision required under
2135 the Florida Insurance Code.
2136 12. No insurer shall impose or request an additional
2137 premium, cancel a policy, or issue a nonrenewal notice on any
2138 insurance policy or contract because of any traffic infraction
2139 when adjudication has been withheld and no points have been
2140 assessed pursuant to s. 318.14(9) and (10). However, this
2141 subparagraph does not apply to traffic infractions involving
2142 accidents in which the insurer has incurred a loss due to the
2143 fault of the insured.
2144 Section 36. Paragraph (a) of subsection (1) of section
2145 626.989, Florida Statutes, is amended to read:
2146 626.989 Investigation by department or Division of
2147 Investigative and Forensic Services; compliance; immunity;
2148 confidential information; reports to division; division
2149 investigator’s power of arrest.—
2150 (1) For the purposes of this section:
2151 (a) A person commits a “fraudulent insurance act” if the
2152 person:
2153 1. Knowingly and with intent to defraud presents, causes to
2154 be presented, or prepares with knowledge or belief that it will
2155 be presented, to or by an insurer, self-insurer, self-insurance
2156 fund, servicing corporation, purported insurer, broker, or any
2157 agent thereof, any written statement as part of, or in support
2158 of, an application for the issuance of, or the rating of, any
2159 insurance policy, or a claim for payment or other benefit
2160 pursuant to any insurance policy, which the person knows to
2161 contain materially false information concerning any fact
2162 material thereto or if the person conceals, for the purpose of
2163 misleading another, information concerning any fact material
2164 thereto.
2165 2. Knowingly submits:
2166 a. A false, misleading, or fraudulent application or other
2167 document when applying for licensure as a health care clinic,
2168 seeking an exemption from licensure as a health care clinic, or
2169 demonstrating compliance with part X of chapter 400 with an
2170 intent to use the license, exemption from licensure, or
2171 demonstration of compliance to provide services or seek
2172 reimbursement under a motor vehicle liability insurance policy’s
2173 medical payments coverage the Florida Motor Vehicle No-Fault
2174 Law.
2175 b. A claim for payment or other benefit under medical
2176 payments coverage, pursuant to a personal injury protection
2177 insurance policy under the Florida Motor Vehicle No-Fault Law if
2178 the person knows that the payee knowingly submitted a false,
2179 misleading, or fraudulent application or other document when
2180 applying for licensure as a health care clinic, seeking an
2181 exemption from licensure as a health care clinic, or
2182 demonstrating compliance with part X of chapter 400.
2183 Section 37. Subsection (1) of section 627.06501, Florida
2184 Statutes, is amended to read:
2185 627.06501 Insurance discounts for certain persons
2186 completing driver improvement course.—
2187 (1) Any rate, rating schedule, or rating manual for the
2188 liability, medical payments personal injury protection, and
2189 collision coverages of a motor vehicle insurance policy filed
2190 with the office may provide for an appropriate reduction in
2191 premium charges as to such coverages if when the principal
2192 operator on the covered vehicle has successfully completed a
2193 driver improvement course approved and certified by the
2194 Department of Highway Safety and Motor Vehicles which is
2195 effective in reducing crash or violation rates, or both, as
2196 determined pursuant to s. 318.1451(5). Any discount, not to
2197 exceed 10 percent, used by an insurer is presumed to be
2198 appropriate unless credible data demonstrates otherwise.
2199 Section 38. Subsection (15) is added to section 627.0651,
2200 Florida Statutes, to read:
2201 627.0651 Making and use of rates for motor vehicle
2202 insurance.—
2203 (15) Initial rate filings for motor vehicle liability
2204 policies which are submitted to the office on or after January
2205 1, 2022, must reflect the financial responsibility requirements
2206 in s. 324.022 then in effect and may be approved only through
2207 the file and use process under s. 627.0651(1)(a).
2208 Section 39. Subsection (1) of section 627.0652, Florida
2209 Statutes, is amended to read:
2210 627.0652 Insurance discounts for certain persons completing
2211 safety course.—
2212 (1) Any rates, rating schedules, or rating manuals for the
2213 liability, medical payments personal injury protection, and
2214 collision coverages of a motor vehicle insurance policy filed
2215 with the office must shall provide for an appropriate reduction
2216 in premium charges as to such coverages if when the principal
2217 operator on the covered vehicle is an insured 55 years of age or
2218 older who has successfully completed a motor vehicle accident
2219 prevention course approved by the Department of Highway Safety
2220 and Motor Vehicles. Any discount used by an insurer is presumed
2221 to be appropriate unless credible data demonstrates otherwise.
2222 Section 40. Subsections (1), (3), and (6) of section
2223 627.0653, Florida Statutes, are amended to read:
2224 627.0653 Insurance discounts for specified motor vehicle
2225 equipment.—
2226 (1) Any rates, rating schedules, or rating manuals for the
2227 liability, medical payments personal injury protection, and
2228 collision coverages of a motor vehicle insurance policy filed
2229 with the office must shall provide a premium discount if the
2230 insured vehicle is equipped with factory-installed, four-wheel
2231 antilock brakes.
2232 (3) Any rates, rating schedules, or rating manuals for
2233 personal injury protection coverage and medical payments
2234 coverage, if offered, of a motor vehicle insurance policy filed
2235 with the office must shall provide a premium discount if the
2236 insured vehicle is equipped with one or more air bags that which
2237 are factory installed.
2238 (6) The Office of Insurance Regulation may approve a
2239 premium discount to any rates, rating schedules, or rating
2240 manuals for the liability, medical payments personal injury
2241 protection, and collision coverages of a motor vehicle insurance
2242 policy filed with the office if the insured vehicle is equipped
2243 with an automated driving system or electronic vehicle collision
2244 avoidance technology that is factory installed or a retrofitted
2245 system and that complies with National Highway Traffic Safety
2246 Administration standards.
2247 Section 41. Section 627.4132, Florida Statutes, is amended
2248 to read:
2249 627.4132 Stacking of coverages prohibited.—If an insured or
2250 named insured is protected by any type of motor vehicle
2251 insurance policy for bodily injury and property damage
2252 liability, personal injury protection, or other coverage, the
2253 policy must shall provide that the insured or named insured is
2254 protected only to the extent of the coverage she or he has on
2255 the vehicle involved in the accident. However, if none of the
2256 insured’s or named insured’s vehicles are is involved in the
2257 accident, coverage is available only to the extent of coverage
2258 on any one of the vehicles with applicable coverage. Coverage on
2259 any other vehicles may shall not be added to or stacked upon
2260 that coverage. This section does not apply:
2261 (1) Apply to uninsured motorist coverage that which is
2262 separately governed by s. 627.727.
2263 (2) To Reduce the coverage available by reason of insurance
2264 policies insuring different named insureds.
2265 Section 42. Subsection (1) of section 627.4137, Florida
2266 Statutes, is amended to read:
2267 627.4137 Disclosure of certain information required.—
2268 (1) Each insurer which does or may provide liability
2269 insurance coverage to pay all or a portion of any claim which
2270 might be made shall provide, within 30 days of the written
2271 request of the claimant or the claimant’s attorney, a statement,
2272 under oath, of a corporate officer or the insurer’s claims
2273 manager or superintendent setting forth the following
2274 information with regard to each known policy of insurance,
2275 including excess or umbrella insurance:
2276 (a) The name of the insurer.
2277 (b) The name of each insured.
2278 (c) The limits of the liability coverage.
2279 (d) A statement of any policy or coverage defense which
2280 such insurer reasonably believes is available to such insurer at
2281 the time of filing such statement.
2282 (e) A copy of the policy.
2283
2284 In addition, the insured, or her or his insurance agent, upon
2285 written request of the claimant or the claimant’s attorney,
2286 shall disclose the name and coverage of each known insurer to
2287 the claimant and shall forward such request for information as
2288 required by this subsection to all affected insurers. The
2289 insurer shall then supply the information required in this
2290 subsection to the claimant within 30 days of receipt of such
2291 request. If an insurer fails to timely comply with this section,
2292 the claimant may file an action in a court of competent
2293 jurisdiction to enforce this section. If the court determines
2294 that the insurer violated this section, the claimant is entitled
2295 to an award of reasonable attorney fees and costs to be paid by
2296 the insurer.
2297 Section 43. Section 627.7263, Florida Statutes, is amended
2298 to read:
2299 627.7263 Rental and leasing driver’s insurance to be
2300 primary; exception.—
2301 (1) The valid and collectible liability insurance and
2302 medical payments coverage or personal injury protection
2303 insurance providing coverage for the lessor of a motor vehicle
2304 for rent or lease is primary unless otherwise stated in at least
2305 10-point type on the face of the rental or lease agreement. Such
2306 insurance is primary for the limits of liability and personal
2307 injury protection coverage as required by s. 324.021(7) and the
2308 medical payments coverage limit specified under s. 627.7265 ss.
2309 324.021(7) and 627.736.
2310 (2) If the lessee’s coverage is to be primary, the rental
2311 or lease agreement must contain the following language, in at
2312 least 10-point type:
2313
2314 “The valid and collectible liability insurance and
2315 medical payments coverage personal injury protection
2316 insurance of an any authorized rental or leasing
2317 driver is primary for the limits of liability and
2318 personal injury protection coverage required under
2319 section 324.021(7), Florida Statutes, and the medical
2320 payments coverage limit specified under section
2321 627.7265 by ss. 324.021(7) and 627.736, Florida
2322 Statutes.”
2323 Section 44. Section 627.7265, Florida Statutes, is created
2324 to read:
2325 627.7265 Motor vehicle insurance; medical payments
2326 coverage.—
2327 (1) Medical payments coverage must protect the named
2328 insured, resident relatives, persons operating the insured motor
2329 vehicle, passengers in the insured motor vehicle, and persons
2330 who are struck by the insured motor vehicle and suffer bodily
2331 injury while not an occupant of a self-propelled motor vehicle
2332 at a limit of at least $5,000 for medical expense incurred due
2333 to bodily injury, sickness, or disease arising out of the
2334 ownership, maintenance, or use of a motor vehicle. Medical
2335 payments coverage must pay for reasonable expenses for necessary
2336 medical, diagnostic, and rehabilitative services that are
2337 lawfully provided, supervised, ordered, or prescribed by a
2338 physician licensed under chapter 458 or chapter 459, by a
2339 dentist licensed under chapter 466, or by a chiropractic
2340 physician licensed under chapter 460 or that are provided in a
2341 hospital or in a facility that owns, or is wholly owned by, a
2342 hospital. The coverage must provide an additional death benefit
2343 of at least $5,000.
2344 (a) Before issuing a motor vehicle liability insurance
2345 policy that is furnished as proof of financial responsibility
2346 under s. 324.031, the insurer must offer medical payments
2347 coverage at limits of $5,000 and $10,000. The insurer may also
2348 offer medical payments coverage at any limit greater than
2349 $5,000.
2350 (b) The medical payments coverage must be offered with an
2351 option with no deductible. The insurer may also offer medical
2352 payments coverage with a deductible not to exceed $500.
2353 (c) This section may not be construed to limit any other
2354 coverage made available by an insurer.
2355 (2) Upon receiving notice of an accident that is
2356 potentially covered by medical payments coverage benefits, the
2357 insurer must reserve $5,000 of medical payments coverage
2358 benefits for payment to physicians licensed under chapter 458 or
2359 chapter 459 or dentists licensed under chapter 466 who provide
2360 emergency services and care, as defined in s. 395.002, or who
2361 provide hospital inpatient care. The amount required to be held
2362 in reserve may be used only to pay claims from such physicians
2363 or dentists until 30 days after the date the insurer receives
2364 notice of the accident. After the 30-day period, any amount of
2365 the reserve for which the insurer has not received notice of
2366 such claims may be used by the insurer to pay other claims. This
2367 subsection does not require an insurer to establish a claim
2368 reserve for insurance accounting purposes.
2369 (3) An insurer providing medical payments coverage benefits
2370 may not:
2371 (a) Seek a lien on any recovery in tort by judgment,
2372 settlement, or otherwise for medical payments coverage benefits,
2373 regardless of whether suit has been filed or settlement has been
2374 reached without suit; or
2375 (b) Bring a cause of action against a person to whom or for
2376 whom medical payments coverage benefits were paid, except when
2377 medical payments coverage benefits were paid by reason of fraud
2378 committed by that person.
2379 (4) An insurer providing medical payments coverage may
2380 include provisions in its policy allowing for subrogation for
2381 medical payments coverage benefits paid if the expenses giving
2382 rise to the payments were caused by the wrongful act or omission
2383 of another who is not also an insured under the policy paying
2384 the medical payments coverage benefits. However, this
2385 subrogation right is inferior to the rights of the injured
2386 insured and is available only after all the insured’s damages
2387 are recovered and the insured is made whole. An insured who
2388 obtains a recovery from a third party of the full amount of the
2389 damages sustained and delivers a release or satisfaction that
2390 impairs a medical payments insurer’s subrogation right is liable
2391 to the insurer for repayment of medical payments coverage
2392 benefits less any expenses of acquiring the recovery, including
2393 a prorated share of attorney fees and costs, and shall hold that
2394 net recovery in trust to be delivered to the medical payments
2395 insurer. The insurer may not include any provision in its policy
2396 allowing for subrogation for any death benefit paid.
2397 Section 45. Subsections (1) and (7) of section 627.727,
2398 Florida Statutes, are amended to read:
2399 627.727 Motor vehicle insurance; uninsured and underinsured
2400 vehicle coverage; insolvent insurer protection.—
2401 (1) A No motor vehicle liability insurance policy that
2402 which provides bodily injury liability coverage may not shall be
2403 delivered or issued for delivery in this state with respect to
2404 any specifically insured or identified motor vehicle registered
2405 or principally garaged in this state, unless uninsured motor
2406 vehicle coverage is provided therein or supplemental thereto for
2407 the protection of persons insured thereunder who are legally
2408 entitled to recover damages from owners or operators of
2409 uninsured motor vehicles because of bodily injury, sickness, or
2410 disease, including death, resulting therefrom. However, the
2411 coverage required under this section is not applicable if when,
2412 or to the extent that, an insured named in the policy makes a
2413 written rejection of the coverage on behalf of all insureds
2414 under the policy. If When a motor vehicle is leased for a period
2415 of 1 year or longer and the lessor of such vehicle, by the terms
2416 of the lease contract, provides liability coverage on the leased
2417 vehicle, the lessee of such vehicle has shall have the sole
2418 privilege to reject uninsured motorist coverage or to select
2419 lower limits than the bodily injury liability limits, regardless
2420 of whether the lessor is qualified as a self-insurer pursuant to
2421 s. 324.171. Unless an insured, or a lessee having the privilege
2422 of rejecting uninsured motorist coverage, requests such coverage
2423 or requests higher uninsured motorist limits in writing, the
2424 coverage or such higher uninsured motorist limits need not be
2425 provided in or supplemental to any other policy that which
2426 renews, extends, changes, supersedes, or replaces an existing
2427 policy with the same bodily injury liability limits when an
2428 insured or lessee had rejected the coverage. When an insured or
2429 lessee has initially selected limits of uninsured motorist
2430 coverage lower than her or his bodily injury liability limits,
2431 higher limits of uninsured motorist coverage need not be
2432 provided in or supplemental to any other policy that which
2433 renews, extends, changes, supersedes, or replaces an existing
2434 policy with the same bodily injury liability limits unless an
2435 insured requests higher uninsured motorist coverage in writing.
2436 The rejection or selection of lower limits must shall be made on
2437 a form approved by the office. The form must shall fully advise
2438 the applicant of the nature of the coverage and must shall state
2439 that the coverage is equal to bodily injury liability limits
2440 unless lower limits are requested or the coverage is rejected.
2441 The heading of the form must shall be in 12-point bold type and
2442 must shall state: “You are electing not to purchase certain
2443 valuable coverage that which protects you and your family or you
2444 are purchasing uninsured motorist limits less than your bodily
2445 injury liability limits when you sign this form. Please read
2446 carefully.” If this form is signed by a named insured, it will
2447 be conclusively presumed that there was an informed, knowing
2448 rejection of coverage or election of lower limits on behalf of
2449 all insureds. The insurer shall notify the named insured at
2450 least annually of her or his options as to the coverage required
2451 by this section. Such notice must shall be part of, and attached
2452 to, the notice of premium, must shall provide for a means to
2453 allow the insured to request such coverage, and must shall be
2454 given in a manner approved by the office. Receipt of this notice
2455 does not constitute an affirmative waiver of the insured’s right
2456 to uninsured motorist coverage if where the insured has not
2457 signed a selection or rejection form. The coverage described
2458 under this section must shall be over and above, but may shall
2459 not duplicate, the benefits available to an insured under any
2460 workers’ compensation law, personal injury protection benefits,
2461 disability benefits law, or similar law; under any automobile
2462 medical payments expense coverage; under any motor vehicle
2463 liability insurance coverage; or from the owner or operator of
2464 the uninsured motor vehicle or any other person or organization
2465 jointly or severally liable together with such owner or operator
2466 for the accident,; and such coverage must shall cover the
2467 difference, if any, between the sum of such benefits and the
2468 damages sustained, up to the maximum amount of such coverage
2469 provided under this section. The amount of coverage available
2470 under this section may shall not be reduced by a setoff against
2471 any coverage, including liability insurance. Such coverage does
2472 shall not inure directly or indirectly to the benefit of any
2473 workers’ compensation or disability benefits carrier or any
2474 person or organization qualifying as a self-insurer under any
2475 workers’ compensation or disability benefits law or similar law.
2476 (7) The legal liability of an uninsured motorist coverage
2477 insurer includes does not include damages in tort for pain,
2478 suffering, disability or physical impairment, disfigurement,
2479 mental anguish, and inconvenience, and the loss of capacity for
2480 the enjoyment of life experienced in the past and to be
2481 experienced in the future unless the injury or disease is
2482 described in one or more of paragraphs (a)-(d) of s. 627.737(2).
2483 Section 46. Subsection (1) and paragraphs (a) and (b) of
2484 subsection (2) of section 627.7275, Florida Statutes, are
2485 amended to read:
2486 627.7275 Motor vehicle liability.—
2487 (1) A motor vehicle insurance policy providing personal
2488 injury protection as set forth in s. 627.736 may not be
2489 delivered or issued for delivery in this state for a with
2490 respect to any specifically insured or identified motor vehicle
2491 registered or principally garaged in this state must provide
2492 bodily injury liability coverage and unless the policy also
2493 provides coverage for property damage liability coverage as
2494 required under by s. 324.022.
2495 (2)(a) Insurers writing motor vehicle insurance in this
2496 state shall make available, subject to the insurers’ usual
2497 underwriting restrictions:
2498 1. Coverage under policies as described in subsection (1)
2499 to an applicant for private passenger motor vehicle insurance
2500 coverage who is seeking the coverage in order to reinstate the
2501 applicant’s driving privileges in this state if the driving
2502 privileges were revoked or suspended pursuant to s. 316.646 or
2503 s. 324.0221 due to the failure of the applicant to maintain
2504 required security.
2505 2. Coverage under policies as described in subsection (1),
2506 which includes bodily injury also provides liability coverage
2507 and property damage liability coverage, for bodily injury,
2508 death, and property damage arising out of the ownership,
2509 maintenance, or use of the motor vehicle in an amount not less
2510 than the minimum limits required under described in s.
2511 324.021(7) or s. 324.023 and which conforms to the requirements
2512 of s. 324.151, to an applicant for private passenger motor
2513 vehicle insurance coverage who is seeking the coverage in order
2514 to reinstate the applicant’s driving privileges in this state
2515 after such privileges were revoked or suspended under s. 316.193
2516 or s. 322.26(2) for driving under the influence.
2517 (b) The policies described in paragraph (a) must shall be
2518 issued for at least 6 months and, as to the minimum coverages
2519 required under this section, may not be canceled by the insured
2520 for any reason or by the insurer after 60 days, during which
2521 period the insurer is completing the underwriting of the policy.
2522 After the insurer has completed underwriting the policy, the
2523 insurer shall notify the Department of Highway Safety and Motor
2524 Vehicles that the policy is in full force and effect and is not
2525 cancelable for the remainder of the policy period. A premium
2526 must shall be collected and the coverage is in effect for the
2527 60-day period during which the insurer is completing the
2528 underwriting of the policy, whether or not the person’s driver
2529 license, motor vehicle tag, and motor vehicle registration are
2530 in effect. Once the noncancelable provisions of the policy
2531 become effective, the bodily injury liability and property
2532 damage liability coverages for bodily injury, property damage,
2533 and personal injury protection may not be reduced below the
2534 minimum limits required under s. 324.021 or s. 324.023 during
2535 the policy period.
2536 Section 47. Effective upon this act becoming a law, section
2537 627.7278, Florida Statutes, is created to read:
2538 627.7278 Applicability and construction; notice to
2539 policyholders.—
2540 (1) As used in this section, the term “minimum security
2541 requirements” means security that enables a person to respond in
2542 damages for liability on account of crashes arising out of the
2543 ownership, maintenance, or use of a motor vehicle, in the
2544 amounts required by s. 324.021(7).
2545 (2) Effective January 1, 2022:
2546 (a) Motor vehicle insurance policies issued or renewed on
2547 or after that date may not include personal injury protection.
2548 (b) All persons subject to s. 324.022, s. 324.032, s.
2549 627.7415, or s. 627.742 must maintain at least minimum security
2550 requirements.
2551 (c) Any new or renewal motor vehicle insurance policy
2552 delivered or issued for delivery in this state must provide
2553 coverage that complies with minimum security requirements.
2554 (d) An existing motor vehicle insurance policy issued
2555 before that date which provides personal injury protection and
2556 property damage liability coverage that meets the requirements
2557 of s. 324.022 on December 31, 2021, but which does not meet
2558 minimum security requirements on or after January 1, 2022, is
2559 deemed to meet the security requirements of s. 324.022 until
2560 such policy is renewed, nonrenewed, or canceled on or after
2561 January 1, 2022. Sections 627.730-627.7405, 400.9905, 400.991,
2562 456.057, 456.072, 627.7263, 627.727, 627.748, 627.9541(1)(i),
2563 and 817.234, Florida Statutes 2020, remain in full force and
2564 effect for motor vehicle accidents covered under a policy issued
2565 under the Florida Motor Vehicle No-Fault Law before January 1,
2566 2022, until the policy is renewed, nonrenewed, or canceled.
2567 (3) Each insurer shall allow each insured who has a new or
2568 renewal policy providing personal injury protection which
2569 becomes effective before January 1, 2022, and whose policy does
2570 not meet minimum security requirements on or after January 1,
2571 2022, to change coverages so as to eliminate personal injury
2572 protection and obtain coverage providing minimum security
2573 requirements, which shall be effective on or after January 1,
2574 2022. The insurer is not required to provide coverage complying
2575 with minimum security requirements in such policies if the
2576 insured does not pay the required premium, if any, by January 1,
2577 2022, or such later date as the insurer may allow. The insurer
2578 also shall offer each insured medical payments coverage pursuant
2579 to s. 627.7265. Any reduction in the premium must be refunded by
2580 the insurer. The insurer may not impose on the insured an
2581 additional fee or charge that applies solely to a change in
2582 coverage; however, the insurer may charge an additional required
2583 premium that is actuarially indicated.
2584 (4) By September 1, 2021, each motor vehicle insurer shall
2585 provide notice of this section to each motor vehicle
2586 policyholder who is subject to this section. The notice is
2587 subject to approval by the office and must clearly inform the
2588 policyholder that:
2589 (a) The Florida Motor Vehicle No-Fault Law is repealed
2590 effective January 1, 2022, and that on or after that date, the
2591 insured is no longer required to maintain personal injury
2592 protection insurance coverage, that personal injury protection
2593 coverage is no longer available for purchase in this state, and
2594 that all new or renewal policies issued on or after that date
2595 will not contain that coverage.
2596 (b) Effective January 1, 2022, a person subject to the
2597 financial responsibility requirements of s. 324.022 must
2598 maintain minimum security requirements that enable the person to
2599 respond to damages for liability on account of accidents arising
2600 out of the use of a motor vehicle in the following amounts:
2601 1. Twenty-five thousand dollars for bodily injury to, or
2602 the death of, one person in any one crash and, subject to such
2603 limits for one person, in the amount of $50,000 for bodily
2604 injury to, or the death of, two or more persons in any one
2605 crash; and
2606 2. Ten thousand dollars for damage to, or destruction of,
2607 the property of others in any one crash.
2608 (c) Bodily injury liability coverage protects the insured,
2609 up to the coverage limits, against loss if the insured is
2610 legally responsible for the death of or bodily injury to others
2611 in a motor vehicle accident.
2612 (d) Effective January 1, 2022, each policyholder of motor
2613 vehicle liability insurance purchased as proof of financial
2614 responsibility must be offered medical payments coverage
2615 benefits that comply with s. 627.7265. The insurer must offer
2616 medical payments coverage at limits of $5,000 and $10,000
2617 without a deductible. The insurer may also offer medical
2618 payments coverage at other limits greater than $5,000, and may
2619 offer coverage with a deductible of up to $500. Medical payments
2620 coverage pays covered medical expenses, up to the limits of such
2621 coverage, for injuries sustained in a motor vehicle crash by the
2622 named insured, resident relatives, persons operating the insured
2623 motor vehicle, passengers in the insured motor vehicle, and
2624 persons who are struck by the insured motor vehicle and suffer
2625 bodily injury while not an occupant of a self-propelled motor
2626 vehicle as provided in s. 627.7265. Medical payments coverage
2627 pays for reasonable expenses for necessary medical, diagnostic,
2628 and rehabilitative services that are lawfully provided,
2629 supervised, ordered, or prescribed by a physician licensed under
2630 chapter 458 or chapter 459, by a dentist licensed under chapter
2631 466, or by a chiropractic physician licensed under chapter 460
2632 or that are provided in a hospital or in a facility that owns,
2633 or is wholly owned by, a hospital. Medical payments coverage
2634 also provides a death benefit of at least $5,000.
2635 (e) The policyholder may obtain uninsured and underinsured
2636 motorist coverage, which provides benefits, up to the limits of
2637 such coverage, to a policyholder or other insured entitled to
2638 recover damages for bodily injury, sickness, disease, or death
2639 resulting from a motor vehicle accident with an uninsured or
2640 underinsured owner or operator of a motor vehicle.
2641 (f) If the policyholder’s new or renewal motor vehicle
2642 insurance policy is effective before January 1, 2022, and
2643 contains personal injury protection and property damage
2644 liability coverage as required by state law before January 1,
2645 2022, but does not meet minimum security requirements on or
2646 after January 1, 2022, the policy is deemed to meet minimum
2647 security requirements until it is renewed, nonrenewed, or
2648 canceled on or after January 1, 2022.
2649 (g) A policyholder whose new or renewal policy becomes
2650 effective before January 1, 2022, but does not meet minimum
2651 security requirements on or after January 1, 2022, may change
2652 coverages under the policy so as to eliminate personal injury
2653 protection and to obtain coverage providing minimum security
2654 requirements, including bodily injury liability coverage, which
2655 are effective on or after January 1, 2022.
2656 (h) If the policyholder has any questions, he or she should
2657 contact the person named at the telephone number provided in the
2658 notice.
2659 Section 48. Paragraph (a) of subsection (1) of section
2660 627.728, Florida Statutes, is amended to read:
2661 627.728 Cancellations; nonrenewals.—
2662 (1) As used in this section, the term:
2663 (a) “Policy” means the bodily injury and property damage
2664 liability, personal injury protection, medical payments,
2665 comprehensive, collision, and uninsured motorist coverage
2666 portions of a policy of motor vehicle insurance delivered or
2667 issued for delivery in this state:
2668 1. Insuring a natural person as named insured or one or
2669 more related individuals who are residents resident of the same
2670 household; and
2671 2. Insuring only a motor vehicle of the private passenger
2672 type or station wagon type which is not used as a public or
2673 livery conveyance for passengers or rented to others; or
2674 insuring any other four-wheel motor vehicle having a load
2675 capacity of 1,500 pounds or less which is not used in the
2676 occupation, profession, or business of the insured other than
2677 farming; other than any policy issued under an automobile
2678 insurance assigned risk plan or covering garage, automobile
2679 sales agency, repair shop, service station, or public parking
2680 place operation hazards.
2681
2682 The term “policy” does not include a binder as defined in s.
2683 627.420 unless the duration of the binder period exceeds 60
2684 days.
2685 Section 49. Subsection (1), paragraph (a) of subsection
2686 (5), and subsections (6) and (7) of section 627.7295, Florida
2687 Statutes, are amended to read:
2688 627.7295 Motor vehicle insurance contracts.—
2689 (1) As used in this section, the term:
2690 (a) “Policy” means a motor vehicle insurance policy that
2691 provides bodily injury liability personal injury protection
2692 coverage and, property damage liability coverage, or both.
2693 (b) “Binder” means a binder that provides motor vehicle
2694 bodily injury liability coverage personal injury protection and
2695 property damage liability coverage.
2696 (5)(a) A licensed general lines agent may charge a per
2697 policy fee of up to not to exceed $10 to cover the
2698 administrative costs of the agent associated with selling the
2699 motor vehicle insurance policy if the policy covers only bodily
2700 injury liability coverage personal injury protection coverage as
2701 provided by s. 627.736 and property damage liability coverage as
2702 provided by s. 627.7275 and if no other insurance is sold or
2703 issued in conjunction with or collateral to the policy. The fee
2704 is not considered part of the premium.
2705 (6) If a motor vehicle owner’s driver license, license
2706 plate, and registration have previously been suspended pursuant
2707 to s. 316.646 or s. 627.733, an insurer may cancel a new policy
2708 only as provided in s. 627.7275.
2709 (7) A policy of private passenger motor vehicle insurance
2710 or a binder for such a policy may be initially issued in this
2711 state only if, before the effective date of such binder or
2712 policy, the insurer or agent has collected from the insured an
2713 amount equal to at least 1 month’s premium. An insurer, agent,
2714 or premium finance company may not, directly or indirectly, take
2715 any action that results resulting in the insured paying having
2716 paid from the insured’s own funds an amount less than the 1
2717 month’s premium required by this subsection. This subsection
2718 applies without regard to whether the premium is financed by a
2719 premium finance company or is paid pursuant to a periodic
2720 payment plan of an insurer or an insurance agent.
2721 (a) This subsection does not apply:
2722 1. If an insured or member of the insured’s family is
2723 renewing or replacing a policy or a binder for such policy
2724 written by the same insurer or a member of the same insurer
2725 group. This subsection does not apply
2726 2. To an insurer that issues private passenger motor
2727 vehicle coverage primarily to active duty or former military
2728 personnel or their dependents. This subsection does not apply
2729 3. If all policy payments are paid pursuant to a payroll
2730 deduction plan, an automatic electronic funds transfer payment
2731 plan from the policyholder, or a recurring credit card or debit
2732 card agreement with the insurer.
2733 (b) This subsection and subsection (4) do not apply if:
2734 1. All policy payments to an insurer are paid pursuant to
2735 an automatic electronic funds transfer payment plan from an
2736 agent, a managing general agent, or a premium finance company
2737 and if the policy includes, at a minimum, bodily injury
2738 liability coverage and personal injury protection pursuant to
2739 ss. 627.730-627.7405; motor vehicle property damage liability
2740 coverage pursuant to s. 627.7275; or and bodily injury liability
2741 in at least the amount of $10,000 because of bodily injury to,
2742 or death of, one person in any one accident and in the amount of
2743 $20,000 because of bodily injury to, or death of, two or more
2744 persons in any one accident. This subsection and subsection (4)
2745 do not apply if
2746 2. An insured has had a policy in effect for at least 6
2747 months, the insured’s agent is terminated by the insurer that
2748 issued the policy, and the insured obtains coverage on the
2749 policy’s renewal date with a new company through the terminated
2750 agent.
2751 Section 50. Section 627.7415, Florida Statutes, is amended
2752 to read:
2753 627.7415 Commercial motor vehicles; additional liability
2754 insurance coverage.—Beginning January 1, 2022, commercial motor
2755 vehicles, as defined in s. 207.002 or s. 320.01, operated upon
2756 the roads and highways of this state must shall be insured with
2757 the following minimum levels of combined bodily liability
2758 insurance and property damage liability insurance in addition to
2759 any other insurance requirements:
2760 (1) Sixty Fifty thousand dollars per occurrence for a
2761 commercial motor vehicle with a gross vehicle weight of 26,000
2762 pounds or more, but less than 35,000 pounds.
2763 (2) One hundred twenty thousand dollars per occurrence for
2764 a commercial motor vehicle with a gross vehicle weight of 35,000
2765 pounds or more, but less than 44,000 pounds.
2766 (3) Three hundred thousand dollars per occurrence for a
2767 commercial motor vehicle with a gross vehicle weight of 44,000
2768 pounds or more.
2769 (4) All commercial motor vehicles subject to regulations of
2770 the United States Department of Transportation, 49 C.F.R. part
2771 387, subpart A, and as may be hereinafter amended, shall be
2772 insured in an amount equivalent to the minimum levels of
2773 financial responsibility as set forth in such regulations.
2774
2775 A violation of this section is a noncriminal traffic infraction,
2776 punishable as a nonmoving violation as provided in chapter 318.
2777 Section 51. Section 627.747, Florida Statutes, is created
2778 to read:
2779 627.747 Named driver exclusion.—
2780 (1) A private passenger motor vehicle policy may exclude an
2781 identified individual from the following coverages while the
2782 identified individual is operating a motor vehicle, provided
2783 that the identified individual is specifically excluded by name
2784 on the declarations page or by endorsement, and the policyholder
2785 consents in writing to the exclusion:
2786 (a) Property damage liability coverage.
2787 (b) Bodily injury liability coverage.
2788 (c) Uninsured motorist coverage for any damages sustained
2789 by the identified excluded individual, if the policyholder has
2790 purchased such coverage.
2791 (d) Any coverage the policyholder is not required by law to
2792 purchase.
2793 (2) A private passenger motor vehicle policy may not
2794 exclude coverage when:
2795 (a) The identified excluded individual is injured while not
2796 operating a motor vehicle;
2797 (b) The exclusion is unfairly discriminatory under the
2798 Florida Insurance Code, as determined by the office; or
2799 (c) The exclusion is inconsistent with the underwriting
2800 rules filed by the insurer pursuant to s. 627.0651(13)(a).
2801 Section 52. Paragraphs (b), (c), and (g) of subsection (7),
2802 paragraphs (a) and (b) of subsection (8), and paragraph (b) of
2803 subsection (16) of section 627.748, Florida Statutes, are
2804 amended to read:
2805 627.748 Transportation network companies.—
2806 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER INSURANCE
2807 REQUIREMENTS.—
2808 (b) The following automobile insurance requirements apply
2809 while a participating TNC driver is logged on to the digital
2810 network but is not engaged in a prearranged ride:
2811 1. Automobile insurance that provides:
2812 a. A primary automobile liability coverage of at least
2813 $50,000 for death and bodily injury per person, $100,000 for
2814 death and bodily injury per incident, and $25,000 for property
2815 damage; and
2816 b. Personal injury protection benefits that meet the
2817 minimum coverage amounts required under ss. 627.730-627.7405;
2818 and
2819 c. Uninsured and underinsured vehicle coverage as required
2820 by s. 627.727.
2821 2. The coverage requirements of this paragraph may be
2822 satisfied by any of the following:
2823 a. Automobile insurance maintained by the TNC driver or the
2824 TNC vehicle owner;
2825 b. Automobile insurance maintained by the TNC; or
2826 c. A combination of sub-subparagraphs a. and b.
2827 (c) The following automobile insurance requirements apply
2828 while a TNC driver is engaged in a prearranged ride:
2829 1. Automobile insurance that provides:
2830 a. A primary automobile liability coverage of at least $1
2831 million for death, bodily injury, and property damage; and
2832 b. Personal injury protection benefits that meet the
2833 minimum coverage amounts required of a limousine under ss.
2834 627.730-627.7405; and
2835 c. Uninsured and underinsured vehicle coverage as required
2836 by s. 627.727.
2837 2. The coverage requirements of this paragraph may be
2838 satisfied by any of the following:
2839 a. Automobile insurance maintained by the TNC driver or the
2840 TNC vehicle owner;
2841 b. Automobile insurance maintained by the TNC; or
2842 c. A combination of sub-subparagraphs a. and b.
2843 (g) Insurance satisfying the requirements under this
2844 subsection is deemed to satisfy the financial responsibility
2845 requirement for a motor vehicle under chapter 324 and the
2846 security required under s. 627.733 for any period when the TNC
2847 driver is logged onto the digital network or engaged in a
2848 prearranged ride.
2849 (8) TRANSPORTATION NETWORK COMPANY AND INSURER; DISCLOSURE;
2850 EXCLUSIONS.—
2851 (a) Before a TNC driver is allowed to accept a request for
2852 a prearranged ride on the digital network, the TNC must disclose
2853 in writing to the TNC driver:
2854 1. The insurance coverage, including the types of coverage
2855 and the limits for each coverage, which the TNC provides while
2856 the TNC driver uses a TNC vehicle in connection with the TNC’s
2857 digital network.
2858 2. That the TNC driver’s own automobile insurance policy
2859 might not provide any coverage while the TNC driver is logged on
2860 to the digital network or is engaged in a prearranged ride,
2861 depending on the terms of the TNC driver’s own automobile
2862 insurance policy.
2863 3. That the provision of rides for compensation which are
2864 not prearranged rides subjects the driver to the coverage
2865 requirements imposed under s. 324.032(1) and (2) and that
2866 failure to meet such coverage requirements subjects the TNC
2867 driver to penalties provided in s. 324.221, up to and including
2868 a misdemeanor of the second degree.
2869 (b)1. An insurer that provides an automobile liability
2870 insurance policy under this part may exclude any and all
2871 coverage afforded under the policy issued to an owner or
2872 operator of a TNC vehicle while driving that vehicle for any
2873 loss or injury that occurs while a TNC driver is logged on to a
2874 digital network or while a TNC driver provides a prearranged
2875 ride. Exclusions imposed under this subsection are limited to
2876 coverage while a TNC driver is logged on to a digital network or
2877 while a TNC driver provides a prearranged ride. This right to
2878 exclude all coverage may apply to any coverage included in an
2879 automobile insurance policy, including, but not limited to:
2880 a. Liability coverage for bodily injury and property
2881 damage;
2882 b. Uninsured and underinsured motorist coverage;
2883 c. Medical payments coverage;
2884 d. Comprehensive physical damage coverage; and
2885 e. Collision physical damage coverage; and
2886 f. Personal injury protection.
2887 2. The exclusions described in subparagraph 1. apply
2888 notwithstanding any requirement under chapter 324. These
2889 exclusions do not affect or diminish coverage otherwise
2890 available for permissive drivers or resident relatives under the
2891 personal automobile insurance policy of the TNC driver or owner
2892 of the TNC vehicle who are not occupying the TNC vehicle at the
2893 time of loss. This section does not require that a personal
2894 automobile insurance policy provide coverage while the TNC
2895 driver is logged on to a digital network, while the TNC driver
2896 is engaged in a prearranged ride, or while the TNC driver
2897 otherwise uses a vehicle to transport riders for compensation.
2898 3. This section must not be construed to require an insurer
2899 to use any particular policy language or reference to this
2900 section in order to exclude any and all coverage for any loss or
2901 injury that occurs while a TNC driver is logged on to a digital
2902 network or while a TNC driver provides a prearranged ride.
2903 4. This section does not preclude an insurer from providing
2904 primary or excess coverage for the TNC driver’s vehicle by
2905 contract or endorsement.
2906 (16) LUXURY GROUND TRANSPORTATION NETWORK COMPANIES.—
2907 (b) An entity may elect, upon written notification to the
2908 department, to be regulated as a luxury ground TNC. A luxury
2909 ground TNC must:
2910 1. Comply with all of the requirements of this section
2911 applicable to a TNC, including subsection (17), which do not
2912 conflict with subparagraph 2. or which do not prohibit the
2913 company from connecting riders to drivers who operate for-hire
2914 vehicles as defined in s. 320.01(15), including limousines and
2915 luxury sedans and excluding taxicabs.
2916 2. Maintain insurance coverage as required by subsection
2917 (7). However, if a prospective luxury ground TNC satisfies
2918 minimum financial responsibility through compliance with s.
2919 324.032(3) s. 324.032(2) by using self-insurance when it gives
2920 the department written notification of its election to be
2921 regulated as a luxury ground TNC, the luxury ground TNC may use
2922 self-insurance to meet the insurance requirements of subsection
2923 (7), so long as such self-insurance complies with s. 324.032(3)
2924 s. 324.032(2) and provides the limits of liability required by
2925 subsection (7).
2926 Section 53. Paragraph (a) of subsection (2) of section
2927 627.749, Florida Statutes, is amended to read:
2928 627.749 Autonomous vehicles; insurance requirements.—
2929 (2) INSURANCE REQUIREMENTS.—
2930 (a) A fully autonomous vehicle with the automated driving
2931 system engaged while logged on to an on-demand autonomous
2932 vehicle network or engaged in a prearranged ride must be covered
2933 by a policy of automobile insurance which provides:
2934 1. Primary liability coverage of at least $1 million for
2935 death, bodily injury, and property damage.
2936 2. Personal injury protection benefits that meet the
2937 minimum coverage amounts required under ss. 627.730-627.7405.
2938 3. Uninsured and underinsured vehicle coverage as required
2939 by s. 627.727.
2940 Section 54. Section 627.8405, Florida Statutes, is amended
2941 to read:
2942 627.8405 Prohibited acts; financing companies.—A No premium
2943 finance company shall, in a premium finance agreement or other
2944 agreement, may not finance the cost of or otherwise provide for
2945 the collection or remittance of dues, assessments, fees, or
2946 other periodic payments of money for the cost of:
2947 (1) A membership in an automobile club. The term
2948 “automobile club” means a legal entity that which, in
2949 consideration of dues, assessments, or periodic payments of
2950 money, promises its members or subscribers to assist them in
2951 matters relating to the ownership, operation, use, or
2952 maintenance of a motor vehicle; however, the term this
2953 definition of “automobile club” does not include persons,
2954 associations, or corporations which are organized and operated
2955 solely for the purpose of conducting, sponsoring, or sanctioning
2956 motor vehicle races, exhibitions, or contests upon racetracks,
2957 or upon racecourses established and marked as such for the
2958 duration of such particular events. As used in this subsection,
2959 the term words “motor vehicle” has used herein have the same
2960 meaning as defined in chapter 320.
2961 (2) An accidental death and dismemberment policy sold in
2962 combination with a policy providing only bodily injury liability
2963 coverage personal injury protection and property damage
2964 liability coverage only policy.
2965 (3) Any product not regulated under the provisions of this
2966 insurance code.
2967
2968 This section also applies to premium financing by any insurance
2969 agent or insurance company under part XVI. The commission shall
2970 adopt rules to assure disclosure, at the time of sale, of
2971 coverages financed with personal injury protection and shall
2972 prescribe the form of such disclosure.
2973 Section 55. Subsection (1) of section 627.915, Florida
2974 Statutes, is amended to read:
2975 627.915 Insurer experience reporting.—
2976 (1) Each insurer transacting private passenger automobile
2977 insurance in this state shall report certain information
2978 annually to the office. The information will be due on or before
2979 July 1 of each year. The information must shall be divided into
2980 the following categories: bodily injury liability; property
2981 damage liability; uninsured motorist; personal injury protection
2982 benefits; medical payments; and comprehensive and collision. The
2983 information given must shall be on direct insurance writings in
2984 the state alone and shall represent total limits data. The
2985 information set forth in paragraphs (a)-(f) is applicable to
2986 voluntary private passenger and Joint Underwriting Association
2987 private passenger writings and must shall be reported for each
2988 of the latest 3 calendar-accident years, with an evaluation date
2989 of March 31 of the current year. The information set forth in
2990 paragraphs (g)-(j) is applicable to voluntary private passenger
2991 writings and must shall be reported on a calendar-accident year
2992 basis ultimately seven times at seven different stages of
2993 development.
2994 (a) Premiums earned for the latest 3 calendar-accident
2995 years.
2996 (b) Loss development factors and the historic development
2997 of those factors.
2998 (c) Policyholder dividends incurred.
2999 (d) Expenses for other acquisition and general expense.
3000 (e) Expenses for agents’ commissions and taxes, licenses,
3001 and fees.
3002 (f) Profit and contingency factors as utilized in the
3003 insurer’s automobile rate filings for the applicable years.
3004 (g) Losses paid.
3005 (h) Losses unpaid.
3006 (i) Loss adjustment expenses paid.
3007 (j) Loss adjustment expenses unpaid.
3008 Section 56. Subsections (2) and (3) of section 628.909,
3009 Florida Statutes, are amended to read:
3010 628.909 Applicability of other laws.—
3011 (2) The following provisions of the Florida Insurance Code
3012 apply to captive insurance companies that who are not industrial
3013 insured captive insurance companies to the extent that such
3014 provisions are not inconsistent with this part:
3015 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
3016 624.40851, 624.4095, 624.411, 624.425, and 624.426.
3017 (b) Chapter 625, part II.
3018 (c) Chapter 626, part IX.
3019 (d) Sections 627.730-627.7405, when no-fault coverage is
3020 provided.
3021 (e) Chapter 628.
3022 (3) The following provisions of the Florida Insurance Code
3023 shall apply to industrial insured captive insurance companies to
3024 the extent that such provisions are not inconsistent with this
3025 part:
3026 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
3027 624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1).
3028 (b) Chapter 625, part II, if the industrial insured captive
3029 insurance company is incorporated in this state.
3030 (c) Chapter 626, part IX.
3031 (d) Sections 627.730-627.7405 when no-fault coverage is
3032 provided.
3033 (e) Chapter 628, except for ss. 628.341, 628.351, and
3034 628.6018.
3035 Section 57. Subsections (2), (6), and (7) of section
3036 705.184, Florida Statutes, are amended to read:
3037 705.184 Derelict or abandoned motor vehicles on the
3038 premises of public-use airports.—
3039 (2) The airport director or the director’s designee shall
3040 contact the Department of Highway Safety and Motor Vehicles to
3041 notify that department that the airport has possession of the
3042 abandoned or derelict motor vehicle and to determine the name
3043 and address of the owner of the motor vehicle, the insurance
3044 company insuring the motor vehicle, notwithstanding the
3045 provisions of s. 627.736, and any person who has filed a lien on
3046 the motor vehicle. Within 7 business days after receipt of the
3047 information, the director or the director’s designee shall send
3048 notice by certified mail, return receipt requested, to the owner
3049 of the motor vehicle, the insurance company insuring the motor
3050 vehicle, notwithstanding the provisions of s. 627.736, and all
3051 persons of record claiming a lien against the motor vehicle. The
3052 notice must shall state the fact of possession of the motor
3053 vehicle, that charges for reasonable towing, storage, and
3054 parking fees, if any, have accrued and the amount thereof, that
3055 a lien as provided in subsection (6) will be claimed, that the
3056 lien is subject to enforcement pursuant to law, that the owner
3057 or lienholder, if any, has the right to a hearing as set forth
3058 in subsection (4), and that any motor vehicle which, at the end
3059 of 30 calendar days after receipt of the notice, has not been
3060 removed from the airport upon payment in full of all accrued
3061 charges for reasonable towing, storage, and parking fees, if
3062 any, may be disposed of as provided in s. 705.182(2)(a), (b),
3063 (d), or (e), including, but not limited to, the motor vehicle
3064 being sold free of all prior liens after 35 calendar days after
3065 the time the motor vehicle is stored if any prior liens on the
3066 motor vehicle are more than 5 years of age or after 50 calendar
3067 days after the time the motor vehicle is stored if any prior
3068 liens on the motor vehicle are 5 years of age or less.
3069 (6) The airport pursuant to this section or, if used, a
3070 licensed independent wrecker company pursuant to s. 713.78 shall
3071 have a lien on an abandoned or derelict motor vehicle for all
3072 reasonable towing, storage, and accrued parking fees, if any,
3073 except that no storage fee may shall be charged if the motor
3074 vehicle is stored less than 6 hours. As a prerequisite to
3075 perfecting a lien under this section, the airport director or
3076 the director’s designee must serve a notice in accordance with
3077 subsection (2) on the owner of the motor vehicle, the insurance
3078 company insuring the motor vehicle, notwithstanding the
3079 provisions of s. 627.736, and all persons of record claiming a
3080 lien against the motor vehicle. If attempts to notify the owner,
3081 the insurance company insuring the motor vehicle,
3082 notwithstanding the provisions of s. 627.736, or lienholders are
3083 not successful, the requirement of notice by mail shall be
3084 considered met. Serving of the notice does not dispense with
3085 recording the claim of lien.
3086 (7)(a) For the purpose of perfecting its lien under this
3087 section, the airport shall record a claim of lien which states
3088 shall state:
3089 1. The name and address of the airport.
3090 2. The name of the owner of the motor vehicle, the
3091 insurance company insuring the motor vehicle, notwithstanding
3092 the provisions of s. 627.736, and all persons of record claiming
3093 a lien against the motor vehicle.
3094 3. The costs incurred from reasonable towing, storage, and
3095 parking fees, if any.
3096 4. A description of the motor vehicle sufficient for
3097 identification.
3098 (b) The claim of lien must shall be signed and sworn to or
3099 affirmed by the airport director or the director’s designee.
3100 (c) The claim of lien is shall be sufficient if it is in
3101 substantially the following form:
3102
3103 CLAIM OF LIEN
3104 State of ........
3105 County of ........
3106 Before me, the undersigned notary public, personally appeared
3107 ........, who was duly sworn and says that he/she is the
3108 ........ of ............, whose address is........; and that the
3109 following described motor vehicle:
3110 ...(Description of motor vehicle)...
3111 owned by ........, whose address is ........, has accrued
3112 $........ in fees for a reasonable tow, for storage, and for
3113 parking, if applicable; that the lienor served its notice to the
3114 owner, the insurance company insuring the motor vehicle
3115 notwithstanding the provisions of s. 627.736, Florida Statutes,
3116 and all persons of record claiming a lien against the motor
3117 vehicle on ...., ...(year)..., by.........
3118 ...(Signature)...
3119 Sworn to (or affirmed) and subscribed before me this .... day of
3120 ...., ...(year)..., by ...(name of person making statement)....
3121 ...(Signature of Notary Public)......(Print, Type, or Stamp
3122 Commissioned name of Notary Public)...
3123 Personally Known....OR Produced....as identification.
3124
3125 However, the negligent inclusion or omission of any information
3126 in this claim of lien which does not prejudice the owner does
3127 not constitute a default that operates to defeat an otherwise
3128 valid lien.
3129 (d) The claim of lien must shall be served on the owner of
3130 the motor vehicle, the insurance company insuring the motor
3131 vehicle, notwithstanding the provisions of s. 627.736, and all
3132 persons of record claiming a lien against the motor vehicle. If
3133 attempts to notify the owner, the insurance company insuring the
3134 motor vehicle notwithstanding the provisions of s. 627.736, or
3135 lienholders are not successful, the requirement of notice by
3136 mail shall be considered met. The claim of lien must shall be so
3137 served before recordation.
3138 (e) The claim of lien must shall be recorded with the clerk
3139 of court in the county where the airport is located. The
3140 recording of the claim of lien shall be constructive notice to
3141 all persons of the contents and effect of such claim. The lien
3142 attaches shall attach at the time of recordation and takes shall
3143 take priority as of that time.
3144 Section 58. Subsection (4) of section 713.78, Florida
3145 Statutes, is amended to read:
3146 713.78 Liens for recovering, towing, or storing vehicles
3147 and vessels.—
3148 (4)(a) A person regularly engaged in the business of
3149 recovering, towing, or storing vehicles or vessels who comes
3150 into possession of a vehicle or vessel pursuant to subsection
3151 (2), and who claims a lien for recovery, towing, or storage
3152 services, shall give notice, by certified mail, to the
3153 registered owner, the insurance company insuring the vehicle
3154 notwithstanding s. 627.736, and all persons claiming a lien
3155 thereon, as disclosed by the records in the Department of
3156 Highway Safety and Motor Vehicles or as disclosed by the records
3157 of any corresponding agency in any other state in which the
3158 vehicle is identified through a records check of the National
3159 Motor Vehicle Title Information System or an equivalent
3160 commercially available system as being titled or registered.
3161 (b) Whenever a law enforcement agency authorizes the
3162 removal of a vehicle or vessel or whenever a towing service,
3163 garage, repair shop, or automotive service, storage, or parking
3164 place notifies the law enforcement agency of possession of a
3165 vehicle or vessel pursuant to s. 715.07(2)(a)2., the law
3166 enforcement agency of the jurisdiction where the vehicle or
3167 vessel is stored shall contact the Department of Highway Safety
3168 and Motor Vehicles, or the appropriate agency of the state of
3169 registration, if known, within 24 hours through the medium of
3170 electronic communications, giving the full description of the
3171 vehicle or vessel. Upon receipt of the full description of the
3172 vehicle or vessel, the department shall search its files to
3173 determine the owner’s name, the insurance company insuring the
3174 vehicle or vessel, and whether any person has filed a lien upon
3175 the vehicle or vessel as provided in s. 319.27(2) and (3) and
3176 notify the applicable law enforcement agency within 72 hours.
3177 The person in charge of the towing service, garage, repair shop,
3178 or automotive service, storage, or parking place shall obtain
3179 such information from the applicable law enforcement agency
3180 within 5 days after the date of storage and shall give notice
3181 pursuant to paragraph (a). The department may release the
3182 insurance company information to the requestor notwithstanding
3183 s. 627.736.
3184 (c) The notice of lien must be sent by certified mail to
3185 the registered owner, the insurance company insuring the vehicle
3186 notwithstanding s. 627.736, and all other persons claiming a
3187 lien thereon within 7 business days, excluding Saturday and
3188 Sunday, after the date of storage of the vehicle or vessel.
3189 However, in no event shall the notice of lien be sent less than
3190 30 days before the sale of the vehicle or vessel. The notice
3191 must state:
3192 1. If the claim of lien is for a vehicle, the last 8 digits
3193 of the vehicle identification number of the vehicle subject to
3194 the lien, or, if the claim of lien is for a vessel, the hull
3195 identification number of the vessel subject to the lien, clearly
3196 printed in the delivery address box and on the outside of the
3197 envelope sent to the registered owner and all other persons
3198 claiming an interest therein or lien thereon.
3199 2. The name, physical address, and telephone number of the
3200 lienor, and the entity name, as registered with the Division of
3201 Corporations, of the business where the towing and storage
3202 occurred, which must also appear on the outside of the envelope
3203 sent to the registered owner and all other persons claiming an
3204 interest in or lien on the vehicle or vessel.
3205 3. The fact of possession of the vehicle or vessel.
3206 4. The name of the person or entity that authorized the
3207 lienor to take possession of the vehicle or vessel.
3208 5. That a lien as provided in subsection (2) is claimed.
3209 6. That charges have accrued and include an itemized
3210 statement of the amount thereof.
3211 7. That the lien is subject to enforcement under law and
3212 that the owner or lienholder, if any, has the right to a hearing
3213 as set forth in subsection (5).
3214 8. That any vehicle or vessel that remains unclaimed, or
3215 for which the charges for recovery, towing, or storage services
3216 remain unpaid, may be sold free of all prior liens 35 days after
3217 the vehicle or vessel is stored by the lienor if the vehicle or
3218 vessel is more than 3 years of age or 50 days after the vehicle
3219 or vessel is stored by the lienor if the vehicle or vessel is 3
3220 years of age or less.
3221 9. The address at which the vehicle or vessel is physically
3222 located.
3223 (d) The notice of lien may not be sent to the registered
3224 owner, the insurance company insuring the vehicle or vessel, and
3225 all other persons claiming a lien thereon less than 30 days
3226 before the sale of the vehicle or vessel.
3227 (e) If attempts to locate the name and address of the owner
3228 or lienholder prove unsuccessful, the towing-storage operator
3229 shall, after 7 business days, excluding Saturday and Sunday,
3230 after the initial tow or storage, notify the public agency of
3231 jurisdiction where the vehicle or vessel is stored in writing by
3232 certified mail or acknowledged hand delivery that the towing
3233 storage company has been unable to locate the name and address
3234 of the owner or lienholder and a physical search of the vehicle
3235 or vessel has disclosed no ownership information and a good
3236 faith effort has been made, including records checks of the
3237 Department of Highway Safety and Motor Vehicles database and the
3238 National Motor Vehicle Title Information System or an equivalent
3239 commercially available system. For purposes of this paragraph
3240 and subsection (9), the term “good faith effort” means that the
3241 following checks have been performed by the company to establish
3242 the prior state of registration and for title:
3243 1. A check of the department’s database for the owner and
3244 any lienholder.
3245 2. A check of the electronic National Motor Vehicle Title
3246 Information System or an equivalent commercially available
3247 system to determine the state of registration when there is not
3248 a current registration record for the vehicle or vessel on file
3249 with the department.
3250 3. A check of the vehicle or vessel for any type of tag,
3251 tag record, temporary tag, or regular tag.
3252 4. A check of the law enforcement report for a tag number
3253 or other information identifying the vehicle or vessel, if the
3254 vehicle or vessel was towed at the request of a law enforcement
3255 officer.
3256 5. A check of the trip sheet or tow ticket of the tow truck
3257 operator to determine whether a tag was on the vehicle or vessel
3258 at the beginning of the tow, if a private tow.
3259 6. If there is no address of the owner on the impound
3260 report, a check of the law enforcement report to determine
3261 whether an out-of-state address is indicated from driver license
3262 information.
3263 7. A check of the vehicle or vessel for an inspection
3264 sticker or other stickers and decals that may indicate a state
3265 of possible registration.
3266 8. A check of the interior of the vehicle or vessel for any
3267 papers that may be in the glove box, trunk, or other areas for a
3268 state of registration.
3269 9. A check of the vehicle for a vehicle identification
3270 number.
3271 10. A check of the vessel for a vessel registration number.
3272 11. A check of the vessel hull for a hull identification
3273 number which should be carved, burned, stamped, embossed, or
3274 otherwise permanently affixed to the outboard side of the
3275 transom or, if there is no transom, to the outmost seaboard side
3276 at the end of the hull that bears the rudder or other steering
3277 mechanism.
3278 Section 59. Paragraph (a) of subsection (1), paragraph (c)
3279 of subsection (7), paragraphs (a), (b), and (c) of subsection
3280 (8), and subsections (9) and (10) of section 817.234, Florida
3281 Statutes, are amended to read:
3282 817.234 False and fraudulent insurance claims.—
3283 (1)(a) A person commits insurance fraud punishable as
3284 provided in subsection (11) if that person, with the intent to
3285 injure, defraud, or deceive any insurer:
3286 1. Presents or causes to be presented any written or oral
3287 statement as part of, or in support of, a claim for payment or
3288 other benefit pursuant to an insurance policy or a health
3289 maintenance organization subscriber or provider contract,
3290 knowing that such statement contains any false, incomplete, or
3291 misleading information concerning any fact or thing material to
3292 such claim;
3293 2. Prepares or makes any written or oral statement that is
3294 intended to be presented to an any insurer in connection with,
3295 or in support of, any claim for payment or other benefit
3296 pursuant to an insurance policy or a health maintenance
3297 organization subscriber or provider contract, knowing that such
3298 statement contains any false, incomplete, or misleading
3299 information concerning any fact or thing material to such claim;
3300 3.a. Knowingly presents, causes to be presented, or
3301 prepares or makes with knowledge or belief that it will be
3302 presented to an any insurer, purported insurer, servicing
3303 corporation, insurance broker, or insurance agent, or any
3304 employee or agent thereof, any false, incomplete, or misleading
3305 information or a written or oral statement as part of, or in
3306 support of, an application for the issuance of, or the rating
3307 of, any insurance policy, or a health maintenance organization
3308 subscriber or provider contract; or
3309 b. Knowingly conceals information concerning any fact
3310 material to such application; or
3311 4. Knowingly presents, causes to be presented, or prepares
3312 or makes with knowledge or belief that it will be presented to
3313 any insurer a claim for payment or other benefit under medical
3314 payments coverage in a motor vehicle a personal injury
3315 protection insurance policy if the person knows that the payee
3316 knowingly submitted a false, misleading, or fraudulent
3317 application or other document when applying for licensure as a
3318 health care clinic, seeking an exemption from licensure as a
3319 health care clinic, or demonstrating compliance with part X of
3320 chapter 400.
3321 (7)
3322 (c) An insurer, or any person acting at the direction of or
3323 on behalf of an insurer, may not change an opinion in a mental
3324 or physical report prepared under s. 627.736(7) or direct the
3325 physician preparing the report to change such opinion; however,
3326 this provision does not preclude the insurer from calling to the
3327 attention of the physician errors of fact in the report based
3328 upon information in the claim file. Any person who violates this
3329 paragraph commits a felony of the third degree, punishable as
3330 provided in s. 775.082, s. 775.083, or s. 775.084.
3331 (8)(a) It is unlawful for any person intending to defraud
3332 any other person to solicit or cause to be solicited any
3333 business from a person involved in a motor vehicle accident for
3334 the purpose of making, adjusting, or settling motor vehicle tort
3335 claims or claims for benefits under medical payments coverage in
3336 a motor vehicle insurance policy personal injury protection
3337 benefits required by s. 627.736. Any person who violates the
3338 provisions of this paragraph commits a felony of the second
3339 degree, punishable as provided in s. 775.082, s. 775.083, or s.
3340 775.084. A person who is convicted of a violation of this
3341 subsection shall be sentenced to a minimum term of imprisonment
3342 of 2 years.
3343 (b) A person may not solicit or cause to be solicited any
3344 business from a person involved in a motor vehicle accident by
3345 any means of communication other than advertising directed to
3346 the public for the purpose of making motor vehicle tort claims
3347 or claims for benefits under medical payments coverage in a
3348 motor vehicle insurance policy personal injury protection
3349 benefits required by s. 627.736, within 60 days after the
3350 occurrence of the motor vehicle accident. Any person who
3351 violates this paragraph commits a felony of the third degree,
3352 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
3353 (c) A lawyer, health care practitioner as defined in s.
3354 456.001, or owner or medical director of a clinic required to be
3355 licensed pursuant to s. 400.9905 may not, at any time after 60
3356 days have elapsed from the occurrence of a motor vehicle
3357 accident, solicit or cause to be solicited any business from a
3358 person involved in a motor vehicle accident by means of in
3359 person or telephone contact at the person’s residence, for the
3360 purpose of making motor vehicle tort claims or claims for
3361 benefits under medical payments coverage in a motor vehicle
3362 insurance policy personal injury protection benefits required by
3363 s. 627.736. Any person who violates this paragraph commits a
3364 felony of the third degree, punishable as provided in s.
3365 775.082, s. 775.083, or s. 775.084.
3366 (9) A person may not organize, plan, or knowingly
3367 participate in an intentional motor vehicle crash or a scheme to
3368 create documentation of a motor vehicle crash that did not occur
3369 for the purpose of making motor vehicle tort claims or claims
3370 for benefits under medical payments coverage in a motor vehicle
3371 insurance policy personal injury protection benefits as required
3372 by s. 627.736. Any person who violates this subsection commits a
3373 felony of the second degree, punishable as provided in s.
3374 775.082, s. 775.083, or s. 775.084. A person who is convicted of
3375 a violation of this subsection shall be sentenced to a minimum
3376 term of imprisonment of 2 years.
3377 (10) A licensed health care practitioner who is found
3378 guilty of insurance fraud under this section for an act relating
3379 to a motor vehicle personal injury protection insurance policy
3380 loses his or her license to practice for 5 years and may not
3381 receive reimbursement under medical payments coverage in a motor
3382 vehicle insurance policy for personal injury protection benefits
3383 for 10 years.
3384 Section 60. For the 2021-2022 fiscal year, the sum of
3385 $83,651 in nonrecurring funds is appropriated from the Insurance
3386 Regulatory Trust Fund to the Office of Insurance Regulation for
3387 the purpose of implementing this act.
3388 Section 61. Except as otherwise expressly provided in this
3389 act and except for this section, which shall take effect upon
3390 this act becoming a law, this act shall take effect January 1,
3391 2022.
