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House Bill 3109

Florida House of Representatives - 1998 HB 3109 By Representative Rodriguez-Chomat 1 A bill to be entitled 2 An act relating to motor vehicle bodily injury 3 liability insurance; amending s. 324.022, F.S.; 4 requiring financial responsibility for certain 5 bodily injury; amending s. 324.151, F.S., to 6 conform; amending s. 627.7275, F.S.; requiring 7 minimum bodily injury liability insurance 8 coverage; amending s. 627.7295, F.S.; revising 9 definitions to conform; amending s. 627.736, 10 F.S., to conform; providing an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Section 324.022, Florida Statutes, is 15 amended to read: 16 324.022 Financial responsibility for property damage 17 and bodily injury.--Every owner or operator of a motor 18 vehicle, which motor vehicle is subject to the requirements of 19 ss. 627.730-627.7405 and required to be registered in this 20 state, shall, by one of the methods established in s. 324.031 21 or by having a policy that complies with s. 627.7275, 22 establish and maintain the ability to respond in damages for 23 liability on account of accidents arising out of the use of 24 the motor vehicle in the amount of $10,000 because of damage 25 to, or destruction of, property of others in any one accident 26 and in the amount of at least $10,000 because of bodily injury 27 to, or death of, any persons operating or occupying any other 28 motor vehicle which is involved in any one accident with the 29 insured motor vehicle. The requirements of this section may 30 also be met by having a policy which provides coverage in the 31 amount of at least $30,000 for combined property damage 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 liability and bodily injury liability for any one accident 2 arising out of the use of the motor vehicle. No insurer shall 3 have any duty to defend uncovered claims irrespective of their 4 joinder with covered claims. 5 Section 2. Paragraphs (a) and (b) of subsection (1) of 6 section 324.151, Florida Statutes, are amended to read: 7 324.151 Motor vehicle liability policies; required 8 provisions.-- 9 (1) A motor vehicle liability policy to be proof of 10 financial responsibility under s. 324.031(1), shall be issued 11 to owners or operators under the following provisions: 12 (a) An owner's liability insurance policy shall 13 designate by explicit description or by appropriate reference 14 all motor vehicles with respect to which coverage is thereby 15 granted and shall insure the owner named therein and any other 16 person as operator using such motor vehicle or motor vehicles 17 with the express or implied permission of such owner against 18 loss from the liability imposed by law for damage or injury 19 arising out of the ownership, maintenance, or use of such 20 motor vehicle or motor vehicles within the United States or 21 the Dominion of Canada, subject to limits, exclusive of 22 interest and costs with respect to each such motor vehicle as 23 is provided for under s. 324.021(7). Insurers may make 24 available, with respect to property damage liability coverage, 25 a deductible amount not to exceed $500. In the event of a 26 property damage loss covered by a policy containing a property 27 damage deductible provision, the insurer shall pay to the 28 third-party claimant the amount of any property damage 29 liability settlement or judgment, subject to policy limits, as 30 if no deductible existed. 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 (b) An operator's motor vehicle liability policy of 2 insurance shall insure the person named therein against loss 3 from the liability imposed upon him or her by law for damages 4 or injury arising out of the use by the person of any motor 5 vehicle not owned by him or her, with the same territorial 6 limits and subject to the same limits of liability as referred 7 to above with respect to an owner's policy of liability 8 insurance. 9 Section 3. Subsection (1) of section 627.7275, Florida 10 Statutes, is amended to read: 11 627.7275 Motor vehicle property damage liability.-- 12 (1) No motor vehicle insurance policy providing 13 personal injury protection as set forth in s. 627.736 shall be 14 delivered or issued for delivery in this state with respect to 15 any specifically insured or identified motor vehicle 16 registered or principally garaged in this state unless the 17 policy also provides coverage for property damage liability in 18 the amount of at least $10,000 because of damage to, or 19 destruction of, property of others in any one accident arising 20 out of the use of the motor vehicle and also provides coverage 21 for bodily injury liability in the amount of at least $10,000 22 because of bodily injury to, or death of, any persons 23 operating or occupying any other motor vehicle which is 24 involved in any one accident with the insured motor vehicle or 25 provides coverage in the amount of at least $30,000 for 26 combined property damage liability and bodily injury liability 27 in any one accident arising out of the use of the motor 28 vehicle. The policy, as to coverage of property damage 29 liability and bodily injury liability, shall meet the 30 applicable requirements of s. 324.151, subject to the usual 31 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 policy exclusions such as have been approved in policy forms 2 by the department. 3 Section 4. Subsections (1) and (5) of section 4 627.7295, Florida Statutes, are amended to read: 5 627.7295 Motor vehicle insurance contracts.-- 6 (1) As used in this section, the term: 7 (a) "Policy" means a motor vehicle insurance policy 8 that provides personal injury protection, bodily injury 9 liability, and property damage liability coverage. 10 (b) "Binder" means a binder that provides motor 11 vehicle personal injury protection, bodily injury liability, 12 and property damage liability coverage. 13 (5) A licensed general lines agent may charge a 14 per-policy fee not to exceed $10 to cover the administrative 15 costs of the agent associated with selling the motor vehicle 16 insurance policy if the policy covers only personal injury 17 protection coverage as provided by s. 627.736 and property 18 damage liability and bodily injury liability coverage as 19 provided by s. 627.7275 and if no other insurance is sold or 20 issued in conjunction with or collateral to the policy. The 21 per-policy fee must be a component of the insurer's rate 22 filing and may not be charged by an agent unless the fee is 23 included in the filing. The fee is not considered part of the 24 premium except for purposes of the department's review of 25 expense factors in a filing made pursuant to s. 627.062. 26 Section 5. Subsection (1) of section 627.736, Florida 27 Statutes, is amended to read: 28 627.736 Required personal injury protection benefits; 29 exclusions; priority.-- 30 (1) REQUIRED BENEFITS.--Every insurance policy 31 complying with the security requirements of s. 627.733 shall 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 provide personal injury protection to the named insured, 2 relatives residing in the same household, persons operating 3 the insured motor vehicle, passengers in such motor vehicle, 4 and other persons struck by such motor vehicle and suffering 5 bodily injury while not an occupant of a self-propelled 6 vehicle, subject to the provisions of subsection (2) and 7 paragraph (4)(d), to a limit of $10,000 for loss sustained by 8 any such person as a result of bodily injury, sickness, 9 disease, or death arising out of the ownership, maintenance, 10 or use of a motor vehicle as follows: 11 (a) Medical benefits.--Eighty percent of all 12 reasonable expenses for necessary medical, surgical, X-ray, 13 dental, and rehabilitative services, including prosthetic 14 devices, and necessary ambulance, hospital, and nursing 15 services. Such benefits shall also include necessary remedial 16 treatment and services recognized and permitted under the laws 17 of the state for an injured person who relies upon spiritual 18 means through prayer alone for healing, in accordance with his 19 or her religious beliefs. 20 (b) Disability benefits.--Sixty percent of any loss of 21 gross income and loss of earning capacity per individual from 22 inability to work proximately caused by the injury sustained 23 by the injured person, plus all expenses reasonably incurred 24 in obtaining from others ordinary and necessary services in 25 lieu of those that, but for the injury, the injured person 26 would have performed without income for the benefit of his or 27 her household. All disability benefits payable under this 28 provision shall be paid not less than every 2 weeks. 29 (c) Death benefits.--Death benefits of $5,000 per 30 individual. The insurer may pay such benefits to the executor 31 or administrator of the deceased, to any of the deceased's 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 relatives by blood or legal adoption or connection by 2 marriage, or to any person appearing to the insurer to be 3 equitably entitled thereto. 4 5 Only insurers writing motor vehicle liability insurance in 6 this state may provide the required benefits of this section, 7 and no such insurer shall require the purchase of any other 8 motor vehicle coverage other than the purchase of property 9 damage liability coverage and bodily injury liability coverage 10 as required by s. 627.7275 as a condition for providing such 11 required benefits. Insurers may not require that property 12 damage liability insurance in an amount greater than $10,000 13 or bodily injury liability insurance in an amount greater than 14 $10,000 be purchased in conjunction with personal injury 15 protection. Such insurers shall make benefits and required 16 property damage liability insurance coverage and bodily injury 17 liability insurance coverage available through normal 18 marketing channels. Any insurer writing motor vehicle 19 liability insurance in this state who fails to comply with 20 such availability requirement as a general business practice 21 shall be deemed to have violated part X of chapter 626, and 22 such violation shall constitute an unfair method of 23 competition or an unfair or deceptive act or practice 24 involving the business of insurance; and any such insurer 25 committing such violation shall be subject to the penalties 26 afforded in such part, as well as those which may be afforded 27 elsewhere in the insurance code. 28 Section 6. This act shall take effect October 1 of the 29 year in which enacted. 30 31 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1998 HB 3109 552-144-98 1 ***************************************** 2 HOUSE SUMMARY 3 Requires bodily injury liability insurance coverage of at 4 least $10,000 for persons operating or occupying motor vehicles involved in an accident with an insured motor 5 vehicle. See bill for details. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7