CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    

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11  Senator Diaz-Balart moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 627.739, Florida Statutes, is

18  amended to read:

19         627.739  Personal injury protection; optional

20  limitations; deductibles.--

21         (1)  The named insured may elect a deductible or

22  modified coverage or combination thereof to apply to the named

23  insured alone or to the named insured and dependent relatives

24  residing in the same household, but may not elect a deductible

25  or modified coverage to apply to any other person covered

26  under the policy. Any person electing a deductible or modified

27  coverage, or a combination thereof, or subject to such

28  deductible or modified coverage as a result of the named

29  insured's election, shall have no right to claim or to recover

30  any amount so deducted from any owner, registrant, operator,

31  or occupant of a vehicle or any person or organization legally

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                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    





 1  responsible for any such person's acts or omissions who is

 2  made exempt from tort liability by ss. 627.730-627.7405.

 3         (2)  Insurers shall offer to each applicant and to each

 4  policyholder, upon the renewal of an existing policy,

 5  deductibles, in amounts of $250, $500, $1,000, and $2,000,

 6  such amount to be deducted from the benefits otherwise due

 7  each person subject to the deduction.  However, this

 8  subsection shall not be applied to reduce the amount of any

 9  benefits received in accordance with s. 627.736(1)(c).

10         (3)  Insurers shall offer coverage wherein, at the

11  election of the named insured, all benefits payable under 42

12  U.S.C. s. 1395, the federal "Medicare" program, or to active

13  or retired military personnel and their dependent relatives

14  shall be deducted from those benefits otherwise payable

15  pursuant to s. 627.736(1).

16         (3)(4)  Insurers shall offer coverage wherein, at the

17  election of the named insured, the benefits for loss of gross

18  income and loss of earning capacity described in s.

19  627.736(1)(b) shall be excluded.

20         (4)  The named insured shall not be prevented from

21  electing a deductible under subsection (2) and modified

22  coverage under subsection (3). Each election made by the named

23  insured under this section shall result in an appropriate

24  reduction of premium associated with that election.

25         (5)  All such offers shall be made in clear and

26  unambiguous language at the time the initial application is

27  taken and prior to each annual renewal and shall indicate that

28  a premium reduction will result from each election. At the

29  option of the insurer, the requirements of the preceding

30  sentence are met by using forms of notice approved by the

31  department, or by providing the following notice in 10-point

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                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    





 1  type in the insurer's application for initial issuance of a

 2  policy of motor vehicle insurance and the insurer's annual

 3  notice of renewal premium:

 4         "For personal injury protection insurance, the

 5         named insured may elect a deductible and to

 6         exclude coverage for loss of gross income and

 7         loss of earning capacity ("lost wages"). These

 8         elections apply to the named insured alone, or

 9         to the named insured and all dependent resident

10         relatives. A premium reduction will result from

11         these elections. The named insured is hereby

12         advised not to elect the lost wage exclusion if

13         the named insured or dependent resident

14         relatives are employed, since lost wages will

15         not be payable in the event of an accident."

16         Section 2.  Section 627.7277, Florida Statutes,

17  is created to read:

18         627.7277  Notice of renewal premium.--

19         (1)  As used in this section, the terms "policy" and

20  "renewal" have the meaning ascribed in s. 627.728.

21         (2)  An insurer shall mail or deliver to its

22  policyholder at least 30 days' advance written notice of the

23  renewal premium for the policy.

24         (3)  If the insurer fails to provide the 30 days'

25  notice of a renewal premium that results in a premium

26  increase, the coverage under the policy remains in effect at

27  the existing rates until 30 days after the notice is given or

28  until the effective date of replacement coverage obtained by

29  the insured, whichever occurs first.

30         Section 3.  Subsection (7) of section 627.7295, Florida

31  Statutes, 1998 Supplement, is amended to read:

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                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    





 1         627.7295  Motor vehicle insurance contracts.--

 2         (7)  A policy of private passenger motor vehicle

 3  insurance or a binder for such a policy may be initially

 4  issued in this state only if the insurer or agent has

 5  collected from the insured an amount equal to 2 months'

 6  premium.  An insurer, agent, or premium finance company may

 7  not directly or indirectly take any action resulting in the

 8  insured having paid from the insured's own funds an amount

 9  less than the 2 months' premium required by this subsection.

10  This subsection applies without regard to whether the premium

11  is financed by a premium finance company or is paid pursuant

12  to a periodic payment plan of an insurer or an insurance

13  agent.  This subsection does not apply if an insured or member

14  of the insured's family is renewing or replacing a policy or a

15  binder for such policy written by the same insurer or a member

16  of the same insurer group.  This subsection does not apply to

17  an insurer that issues private passenger motor vehicle

18  coverage primarily to active duty or former military personnel

19  or their dependents. This subsection does not apply if all the

20  policy payments are is paid pursuant to a payroll deduction

21  plan or an automatic electronic funds transfer payment plan

22  from the policyholder, provided that the first policy payment

23  is made by cash, cashier's check, check, or a money order.

24  This subsection and subsection (4) do not apply if all policy

25  payment to an insurer are paid pursuant to an automatic

26  electronic funds transfer payment plan from an agent or a

27  managing general agent and if the policy includes, at a

28  minimum, personal injury protection pursuant to ss.

29  627.730-627.7405; motor vehicle property damage liability

30  pursuant to s. 627.7275; and bodily injury liability in at

31  least the amount of $10,000 because of bodily injury to, or

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                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    





 1  death of, one person in any one accident and in the amount of

 2  $20,000 because of bodily injury to, or death of, two or more

 3  persons in any one accident. This subsection and subsection

 4  (4) do not apply if an insured has had a policy in effect for

 5  at least 6 months, the insured's agent is terminated by the

 6  insurer that issued the policy, and the insured obtains

 7  coverage on the policy's renewal date with a new company

 8  through the terminated agent.

 9         Section 4.  This act shall take effect July 1, 1999,

10  and shall apply to policies issued or renewed on or after July

11  1, 2000.

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13

14  ================ T I T L E   A M E N D M E N T ===============

15  And the title is amended as follows:

16         Delete everything before the enacting clause

17

18  and insert:

19                      A bill to be entitled

20         An act relating to automobile insurance;

21         amending s. 627.739, F.S.; allowing insureds to

22         elect multiple personal injury protection

23         policy limitations; deleting requirement that

24         insurers offer certain limitations; allowing

25         insureds to receive appropriate premium

26         reductions; requiring notice; creating s.

27         627.7277, F.S.; requiring insurers to give the

28         policyholders notice of the renewal premium;

29         providing for continuation of policy coverage

30         at existing rates if the insurer fails to

31         comply; amending s. 627.7295, F.S.; providing

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                                                  SENATE AMENDMENT

    Bill No. HB 295, 2nd Eng.

    Amendment No.    





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