House Bill hb0393c1

    Florida House of Representatives - 2002              CS/HB 393

        By the Committee on Insurance and Representatives Simmons
    and Hogan





  1                      A bill to be entitled

  2         An act relating to motor vehicle financial

  3         responsibility; amending ss. 324.031 and

  4         324.032, F.S.; increasing certain limits of

  5         financial responsibility; specifying effect;

  6         providing an effective date.

  7

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

  9

10         Section 1.  Section 324.031, Florida Statutes, is

11  amended to read:

12         324.031  Manner of proving financial

13  responsibility.--The owner or operator of a taxicab,

14  limousine, jitney, or any other for-hire passenger

15  transportation vehicle may prove financial responsibility by

16  providing satisfactory evidence of holding a motor vehicle

17  liability policy as defined in s. 324.021(8) or s. 324.151,

18  which policy is issued by an insurance carrier which is a

19  member of the Florida Insurance Guaranty Association. The

20  operator or owner of any other vehicle may prove his or her

21  financial responsibility by:

22         (1)  Furnishing satisfactory evidence of holding a

23  motor vehicle liability policy as defined in ss. 324.021(8)

24  and 324.151;

25         (2)  Posting with the department a satisfactory bond of

26  a surety company authorized to do business in this state,

27  conditioned for payment of the amount specified in s.

28  324.021(7);

29         (3)  Furnishing a certificate of the department showing

30  a deposit of cash or securities in accordance with s. 324.161;

31  or

                                  1

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






    Florida House of Representatives - 2002              CS/HB 393

    200-577-02






  1         (4)  Furnishing a certificate of self-insurance issued

  2  by the department in accordance with s. 324.171.

  3

  4  Any person, including any firm, partnership, association,

  5  corporation, or other person, other than a natural person,

  6  electing to use the method of proof specified in subsection

  7  (2) or subsection (3) shall post a bond or deposit equal to

  8  the number of vehicles owned times $30,000, to a maximum of

  9  $120,000; in addition, any such person, other than a natural

10  person, shall maintain insurance providing coverage in excess

11  of limits of $25,000/50,000/10,000 $10,000/20,000/10,000 or

12  $60,000 $30,000 combined single limits, and such excess

13  insurance shall provide minimum limits of

14  $125,000/250,000/50,000 $50,000/100,000/50,000 or $300,000

15  $150,000 combined single limits. These increased limits shall

16  not affect the requirements for proving financial

17  responsibility under s. 324.032(1).

18         Section 2.  Subsection (1) of section 324.032, Florida

19  Statutes, is amended to read:

20         324.032  Manner of proving financial responsibility;

21  for-hire passenger transportation vehicles.--

22         (1)  Notwithstanding the provisions of s. 324.031, a

23  person who is either the owner or a lessee required to

24  maintain insurance under s. 324.021(9)(b) and who operates at

25  least 300 taxicabs, limousines, jitneys, or any other for-hire

26  passenger transportation vehicles may prove financial

27  responsibility by satisfying the following:

28         (a)  Furnishing satisfactory evidence of holding a

29  motor vehicle liability policy as defined in s. 324.031; or

30         (b)  Complying with the provisions of s. 324.171, such

31  compliance to be demonstrated by maintaining at its principal

                                  2

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






    Florida House of Representatives - 2002              CS/HB 393

    200-577-02






  1  place of business an audited financial statement, prepared in

  2  accordance with generally accepted accounting principles, and

  3  providing to the department a certification issued by a

  4  certified public accountant that the applicant's net worth is

  5  at least equal to the requirements of s. 324.171 as determined

  6  by the Department of Insurance, including claims liabilities

  7  in an amount certified as adequate by a Fellow of the Casualty

  8  Actuarial Society.

  9

10  Upon request by the department, the applicant must provide the

11  department at the applicant's principal place of business in

12  this state access to the applicant's underlying financial

13  information and financial statements that provide the basis of

14  the certified public accountant's certification.  The

15  applicant shall reimburse the requesting department for all

16  reasonable costs incurred by it in reviewing the supporting

17  information.  The maximum amount of self-insurance permissible

18  under this subsection is $300,000 $100,000 and must be stated

19  on a per-occurrence basis, and the applicant shall maintain

20  adequate excess insurance issued by an authorized or eligible

21  insurer licensed or approved by the Department of Insurance.

22  All risks self-insured shall remain with the owner or lessee

23  providing it, and the risks are not transferable to any other

24  person, unless a policy complying with paragraph (a) is

25  obtained.

26         Section 3.  This act shall take effect upon becoming a

27  law.

28

29

30

31

                                  3

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