Senate Bill sb0278c1

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    Florida Senate - 2004                            CS for SB 278

    By the Committee on Transportation; and Senators Wise, Fasano
    and Lynn




    306-2419-04

  1                      A bill to be entitled

  2         An act relating to motor vehicle liability

  3         insurance; amending s. 320.055, F.S.; providing

  4         for a 6-month vehicle registration for persons

  5         reinstating a driver's license that has been

  6         suspended for driving under the influence;

  7         requiring the Department of Highway Safety and

  8         Motor Vehicles to issue 6-month vehicle

  9         registration certificates and validation

10         stickers; specifying the amount of taxes and

11         fees which must be paid; amending s. 324.131,

12         F.S.; requiring persons whose license or

13         registration has been suspended or revoked due

14         to a violation of driving under the influence

15         to maintain, for 3 years, noncancelable

16         liability coverage as described in s.

17         627.7275(2), F.S.; authorizing the Department

18         of Highway Safety and Motor Vehicles to adopt a

19         form for proof of such coverage; amending s.

20         627.7275, F.S.; requiring insurers to make

21         available bodily injury and property damage

22         liability coverage that is noncancelable for a

23         certain period; providing that an insurer may

24         cancel an automobile insurance policy if an

25         operator's driver's license is revoked or

26         suspended; providing an effective date.

27  

28  Be It Enacted by the Legislature of the State of Florida:

29  

30         Section 1.  Subsection (1) of section 320.055, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2004                            CS for SB 278
    306-2419-04




 1         320.055  Registration periods; renewal periods.--The

 2  following registration periods and renewal periods are

 3  established:

 4         (1)(a)  For a motor vehicle subject to registration

 5  under s. 320.08(1), (2), (3), (5)(b), (c), (d), or (f),

 6  (6)(a), (7), (8), (9), or (10) and owned by a natural person,

 7  the registration period begins the first day of the birth

 8  month of the owner and ends the last day of the month

 9  immediately preceding the owner's birth month in the

10  succeeding year.  If such vehicle is registered in the name of

11  more than one person, the birth month of the person whose name

12  first appears on the registration shall be used to determine

13  the registration period.  For a vehicle subject to this

14  registration period, the renewal period is the 30-day period

15  ending at midnight on the vehicle owner's date of birth.

16         (b)  Notwithstanding the requirements of paragraph (a),

17  the owner of a motor vehicle subject to paragraph (a) who has

18  had his or her driver's license suspended pursuant to a

19  violation of s. 316.193 or pursuant to s. 322.26(2) for

20  driving under the influence must obtain a 6-month registration

21  as a condition of reinstating the license, subject to renewal

22  during the 3-year period that financial responsibility

23  requirements apply. The registration period begins the first

24  day of the birth month of the owner and ends the last day of

25  the fifth month immediately following the owner's birth month.

26  For such vehicles, the department shall issue a vehicle

27  registration certificate that is valid for 6 months and shall

28  issue a validation sticker that displays an expiration date of

29  6 months after the date of issuance. The license tax required

30  by s. 320.08 and all other applicable license taxes shall be

31  one-half of the amount otherwise required, except that the

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    Florida Senate - 2004                            CS for SB 278
    306-2419-04




 1  service fee required by s. 320.04 shall be paid in full for

 2  each 6-month registration.

 3         Section 2.  Section 324.131, Florida Statutes, is

 4  amended to read:

 5         324.131  Period of suspension.--Such license,

 6  registration and nonresident's operating privilege shall

 7  remain so suspended and shall not be renewed, nor shall any

 8  such license or registration be thereafter issued in the name

 9  of such person, including any such person not previously

10  licensed, unless and until every such judgment is stayed,

11  satisfied in full or to the extent of the limits stated in s.

12  324.021(7) and until the said person gives proof of financial

13  responsibility as provided in s. 324.031, such proof to be

14  maintained for 3 years. In addition, if the person's license

15  or registration has been suspended or revoked due to a

16  violation of s. 316.193 or pursuant to s. 322.26(2), that

17  person must maintain noncancelable liability coverage for each

18  motor vehicle registered in his or her name, as described in

19  s. 627.7275(2), and must present on a form adopted by the

20  Department of Highway Safety and Motor Vehicles proof that

21  coverage is in force, such proof to be maintained for 3 years.

22         Section 3.  Section 627.7275, Florida Statutes, is

23  amended to read:

24         627.7275  Motor vehicle property damage liability.--

25         (1)  A No motor vehicle insurance policy providing

26  personal injury protection as set forth in s. 627.736 may not

27  shall be delivered or issued for delivery in this state with

28  respect to any specifically insured or identified motor

29  vehicle registered or principally garaged in this state unless

30  the policy also provides coverage for property damage

31  liability in the amount of at least $10,000 because of damage

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    Florida Senate - 2004                            CS for SB 278
    306-2419-04




 1  to, or destruction of, property of others in any one accident

 2  arising out of the use of the motor vehicle or unless the

 3  policy provides coverage in the amount of at least $30,000 for

 4  combined property damage liability and bodily injury liability

 5  in any one accident arising out of the use of the motor

 6  vehicle.  The policy, as to coverage of property damage

 7  liability, must shall meet the applicable requirements of s.

 8  324.151, subject to the usual policy exclusions that such as

 9  have been approved in policy forms by the office.

10         (2)(a)  Insurers writing motor vehicle insurance in

11  this state shall make available, subject to the insurers'

12  usual underwriting restrictions:,

13         1.  Coverage under policies as described in subsection

14  (1) of this section to any applicant for private passenger

15  motor vehicle insurance coverage who is seeking the coverage

16  in order to reinstate the applicant's driving privileges in

17  this state when the driving privileges were revoked or

18  suspended pursuant to s. 316.646 or s. 627.733 due to the

19  failure of the applicant to maintain required security; and.

20         2.  Coverage under policies as described in subsection

21  (1) and which also provides liability coverage for bodily

22  injury, death, and property damage arising out of the

23  ownership, maintenance, or use of the motor vehicle in an

24  amount not less than the limits described in s. 324.021(7) and

25  which conforms to the requirements of s. 324.151, to any

26  applicant for private passenger motor vehicle insurance

27  coverage who is seeking the coverage in order to reinstate the

28  applicant's driving privileges in this state after such

29  privileges were revoked or suspended under s. 316.193 or s.

30  322.26(2) for driving under the influence.

31  

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    Florida Senate - 2004                            CS for SB 278
    306-2419-04




 1         (b)  The policies described in paragraph (a) policy

 2  shall be issued for a period of at least 6 months and as to

 3  the minimum coverages required under this section shall not be

 4  cancelable by the insured for any reason or by the insurer

 5  after a period not to exceed 30 days during which the insurer

 6  must complete underwriting of the policy. After the insurer

 7  has completed underwriting the policy within the 30-day

 8  period, the insurer shall notify the Department of Highway

 9  Safety and Motor Vehicles that the policy is in full force and

10  effect and the policy shall not be cancelable for the

11  remainder of the policy period.  A premium shall be collected

12  and coverage shall be in effect for the 30-day period during

13  which the insurer is completing the underwriting of the policy

14  whether or not the person's driver license, motor vehicle tag,

15  and motor vehicle registration are in effect.  Once the

16  noncancelable provisions of the policy become effective, the

17  coverage or risk shall not be changed during the policy period

18  and the premium shall be nonrefundable.  If, during the

19  pendency of the 2-year proof of insurance period required

20  under s. 627.733(7) or during the 3-year proof of financial

21  responsibilty required under s. 324.131, which ever is

22  applicable, the insured obtains additional coverage or

23  coverage for an additional risk or changes territories, the

24  insured must obtain a new 6-month noncancelable policy in

25  accordance with the provisions of this section. However, if

26  the insured must obtain a new 6-month policy and obtains the

27  policy from the same insurer, the policyholder shall receive

28  credit on the new policy for any premium paid on the

29  previously issued policy.

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    Florida Senate - 2004                            CS for SB 278
    306-2419-04




 1         (c)(b)  The provisions of This subsection controls

 2  shall control to the extent of any conflict with any other

 3  section.

 4         (d)  An insurer issuing a policy subject to this

 5  section may cancel the policy if, during the policy term, the

 6  named insured or any other operator who resides in the same

 7  household or customarily operates an automobile insured under

 8  the policy has his or her driver's license suspended or

 9  revoked.

10         (e)  This subsection does not require an insurer to

11  offer a policy of insurance to an applicant if such offer

12  would be inconsistent with the insurer's underwriting

13  guidelines and procedures.

14         Section 4.  This act shall take effect October 1, 2004.

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16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                         Senate Bill 278

18                                 

19  This CS allows the insurer to cancel the "non-cancelable"
    policy if drivers have their license suspended or revoked.
20  The CS also clarifies an insurer need not offer a policy if
    issuance would be inconsistent with underwriting guidelines.
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