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Senate Bill 0186

Florida Senate - 1998 SB 186 By Senator Grant 13-158-98 1 A bill to be entitled 2 An act relating to insurance; amending s. 3 627.736, F.S.; specifying the time when 4 personal injury protection benefits are 5 overdue; providing an effective date. 6 7 Be It Enacted by the Legislature of the State of Florida: 8 9 Section 1. Subsection (4) of section 627.736, Florida 10 Statutes, is amended to read: 11 627.736 Required personal injury protection benefits; 12 exclusions; priority.-- 13 (4) BENEFITS; WHEN DUE.--Benefits due from an insurer 14 under ss. 627.730-627.7405 shall be primary, except that 15 benefits received under any workers' compensation law shall be 16 credited against the benefits provided by subsection (1) and 17 shall be due and payable as loss accrues, upon receipt of 18 reasonable proof of such loss and the amount of expenses and 19 loss incurred which are covered by the policy issued under ss. 20 627.730-627.7405. When the Department of Health and 21 Rehabilitative Services provides, pays, or becomes liable for 22 medical assistance under the Medicaid program related to 23 injury, sickness, disease, or death arising out of the 24 ownership, maintenance, or use of a motor vehicle, benefits 25 under ss. 627.730-627.7405 shall be subject to the provisions 26 of the Medicaid program. 27 (a) An insurer may require written notice to be given 28 as soon as practicable after an accident involving a motor 29 vehicle with respect to which the policy affords the security 30 required by ss. 627.730-627.7405. 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 186 13-158-98 1 (b) Personal injury protection insurance benefits paid 2 pursuant to this section shall be overdue if not paid within 3 30 days after the insurer is furnished reasonable proof 4 written notice of the fact of a covered loss and of the amount 5 of same. If such reasonable proof written notice is not 6 furnished to the insurer as to the entire claim, any partial 7 amount supported by reasonable proof written notice is overdue 8 if not paid within 30 days after such reasonable proof written 9 notice is furnished to the insurer. Any part or all of the 10 remainder of the claim that is subsequently supported by 11 reasonable proof written notice is overdue if not paid within 12 30 days after such reasonable proof written notice is 13 furnished to the insurer. However, any payment is shall not 14 be deemed overdue when the insurer has reasonable proof to 15 establish that the insurer is not responsible for the payment, 16 notwithstanding that written notice has been furnished to the 17 insurer. For the purpose of calculating the extent to which 18 any benefits are overdue, payment shall be treated as being 19 made on the date a draft or other valid instrument which is 20 equivalent to payment was placed in the United States mail in 21 a properly addressed, postpaid envelope or, if not so posted, 22 on the date of delivery. 23 (c) All overdue payments shall bear simple interest at 24 the rate of 10 percent per year. 25 (d) The insurer of the owner of a motor vehicle shall 26 pay personal injury protection benefits for: 27 1. Accidental bodily injury sustained in this state by 28 the owner while occupying a motor vehicle, or while not an 29 occupant of a self-propelled vehicle if the injury is caused 30 by physical contact with a motor vehicle. 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 186 13-158-98 1 2. Accidental bodily injury sustained outside this 2 state, but within the United States of America or its 3 territories or possessions or Canada, by the owner while 4 occupying the owner's motor vehicle. 5 3. Accidental bodily injury sustained by a relative of 6 the owner residing in the same household, under the 7 circumstances described in subparagraph 1. or subparagraph 2., 8 provided the relative at the time of the accident is domiciled 9 in the owner's household and is not himself or herself the 10 owner of a motor vehicle with respect to which security is 11 required under ss. 627.730-627.7405. 12 4. Accidental bodily injury sustained in this state by 13 any other person while occupying the owner's motor vehicle or, 14 if a resident of this state, while not an occupant of a 15 self-propelled vehicle, if the injury is caused by physical 16 contact with such motor vehicle, provided the injured person 17 is not himself or herself: 18 a. The owner of a motor vehicle with respect to which 19 security is required under ss. 627.730-627.7405; or 20 b. Entitled to personal injury benefits from the 21 insurer of the owner or owners of such a motor vehicle. 22 (e) If two or more insurers are liable to pay personal 23 injury protection benefits for the same injury to any one 24 person, the maximum payable shall be as specified in 25 subsection (1), and any insurer paying the benefits shall be 26 entitled to recover from each of the other insurers an 27 equitable pro rata share of the benefits paid and expenses 28 incurred in processing the claim. 29 (f) Medical payments insurance, if available in a 30 policy of motor vehicle insurance, shall pay the portion of 31 any claim for personal injury protection medical benefits 3 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 186 13-158-98 1 which is otherwise covered but is not payable due to the 2 coinsurance provision of paragraph (1)(a), regardless of 3 whether the full amount of personal injury protection coverage 4 has been exhausted. The benefits shall not be payable for the 5 amount of any deductible which has been selected. 6 (g) It is a violation of the insurance code for an 7 insurer to fail to timely provide benefits as required by this 8 section with such frequency as to constitute a general 9 business practice. 10 Section 2. This act shall take effect July 1, 1998. 11 12 ***************************************** 13 SENATE SUMMARY 14 Provides that personal injury protection benefits to be paid by an insurer are overdue if not paid within 30 days 15 after the insurer has been furnished reasonable proof of a covered loss and the amount of the loss. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4