Florida Senate - 2018 SB 1812 By Senator Rader 29-01105A-18 20181812__ 1 A bill to be entitled 2 An act relating to sovereign immunity; amending s. 3 768.28, F.S.; authorizing political subdivisions to 4 insure for certain amounts to pay certain claims or 5 judgments; providing requirements with respect to such 6 insurance; prohibiting payments in excess of such 7 insurance limits from such political subdivisions; 8 providing a remedy against insurers who act in bad 9 faith; authorizing counties to purchase umbrella 10 policies to insure certain municipalities; authorizing 11 parties to pursue judgments in excess of policy limits 12 under specified circumstances; providing for 13 applicability; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (17) of section 768.28, Florida 18 Statutes, is amended to read: 19 768.28 Waiver of sovereign immunity in tort actions; 20 recovery limits; limitation on attorney fees; insurance and 21 self-insurance limits; statute of limitations; exclusions; 22 indemnification; risk management programs.— 23 (17)(a) A political subdivision may purchase insurance or 24 self-insure to cover liabilities under this section: 25 1. In an amount equal to $5 million to pay a claim or 26 judgment by any one person or $7.5 million to cover the total 27 claims or judgments arising out of the same incident or 28 occurrence. 29 2. In an amount equal to $10 million to pay a claim or 30 judgment by any one person or $15 million to cover the total 31 claims or judgments arising out of the same incident or 32 occurrence. 33 (b)1. Insurance purchased pursuant to paragraph (a) must 34 pay for covered liabilities up to the policy limits and not be 35 contingent upon further act of the Legislature. 36 2. Self-insurance maintained pursuant to paragraph (a) must 37 require that, within 45 days after receipt of the notice of loss 38 from the claimant, the lesser of the amount the claimant is 39 willing to accept or the policy limits is deposited into a 40 contingent liability account and held there pending the 41 resolution of the related litigation. 42 (c) Notwithstanding other provisions of this section, a 43 political subdivision that purchases insurance or self-insures 44 in compliance with paragraph (a) is only liable for its 45 deductible under the policy and is not liable for any judgments 46 in excess of the limits of such policy. A party injured by a 47 tort covered by such a policy may not seek payment from the 48 insured beyond the insurance coverage for such tort and any 49 claim for relief related to such tort submitted to the 50 Legislature in the future shall be treated by the Legislature: 51 1. As a local claim bill, if the political subdivision was 52 insured or self-insured in compliance with subparagraph (a)1. on 53 the date the claim arose. 54 2. As a claim bill against the state to be paid from state 55 funds, if the political subdivision was insured or self-insured 56 in compliance with subparagraph (a)2. on the date the claim 57 arose. 58 (d) A county may purchase an umbrella policy that, in 59 addition to insuring the county, offers insurance to 60 municipalities within the county; however, a municipality is not 61 required to be insured by such umbrella policy purchased by a 62 county. The county shall charge on a pro-rata basis the 63 municipalities that choose to be insured by the umbrella policy. 64 (e) Notwithstanding paragraph (c), a party injured as a 65 result of a tort covered by this subsection may pursue a 66 judgment in excess of the policy limits if the insurer is found 67 to have acted in bad faith in meeting its obligations under its 68 policy with the political subdivision.
This section, as amended69 by chapter 81-317, Laws of Florida, shall apply only to causes70 of actions which accrue on or after October 1, 1981.71 Section 2. The amendments made by this act to s. 768.28, 72 Florida Statutes, apply to causes of action filed on or after 73 October 1, 2018. 74 Section 3. This act shall take effect October 1, 2018.