HB 7263

1
A bill to be entitled
2An act relating to motor vehicle insurance; amending s.
3624.155, F.S.; providing notice requirements for causes of
4action against motor vehicle insurers; amending s.
5627.736, F.S.; providing for specified damages and
6attorney's fees in cases involving certain unfair trade
7practices by insurers; requiring investigations by the
8Attorney General; providing for availability of additional
9personal injury protection benefits for specified
10emergency services and care; providing limitations on the
11increased benefit; specifying application of certain
12attorney fee provisions to certain disputes; prohibiting
13application of a contingency risk multiplier applicable to
14awards of attorney's fees in certain disputes; amending s.
15627.7401, F.S.; specifying additional information
16requirements for notification of an insured's right to
17receive personal injury protection benefits under the
18Florida Motor Vehicle No-Fault Law relating to anti-fraud
19rewards; creating s. 627.7441, F.S.; requiring certain
20owners and registrants of motorcycles to maintain property
21damage and medical payments benefits coverage; authorizing
22alternative methods for providing the required security;
23authorizing insurers to offer various levels of
24deductibles for the medical payments coverage; requiring
25premium discounts at different deductible levels; making
26an owner or registrant personally responsible for damages
27for failure to maintain the required security; requiring
28the Financial Services Commission to adopt rules; amending
29s. 316.068, F.S.; specifying additional information to be
30included in a crash report; creating a rebuttable
31presumption relating to the existence of passengers in
32vehicles involved in a crash; amending s. 322.21, F.S.;
33providing an additional fee for certain offenses relating
34to insurance crimes; requiring the Department of Highway
35Safety and Motor Vehicles to collect and deposit the fee
36into the Highway Safety Operating Trust Fund; amending s.
37322.26, F.S.; providing an additional circumstance
38relating to insurance crimes for mandatory revocation of a
39person's driver's license; amending s. 817.234, F.S.;
40prohibiting scheming to create documentation of a motor
41vehicle crash that did not occur; providing a criminal
42penalty; amending s. 817.2361, F.S.; providing that
43creating, marketing, or presenting fraudulent proof of
44motor vehicle insurance is a felony of the third degree;
45amending section 19, ch. 2003, Laws of Florida; extending
46the repeal of the Florida Motor Vehicle No-Fault Law;
47providing an effective date.
48
49Be It Enacted by the Legislature of the State of Florida:
50
51     Section 1.  Subsection (10) is added to section 624.155,
52Florida Statutes, to read:
53     624.155  Civil remedy.--
54     (10)  Notwithstanding the provisions of subsection (8),
55before a person may file any statutory or common law cause of
56action arising out of a violation of a provision enumerated in
57subsection (1) or subsection (2) or any other cause of action
58alleging that a motor vehicle insurer did not act in good faith
59or fairly and honestly toward an insured of the insurer or with
60due regard for the insured's interests, the notice requirements
61of paragraph (3)(a) must be met. These requirements apply to a
62claim made by a first party or third party.
63     Section 2.  Paragraph (f) of subsection (11) of section
64627.736, Florida Statutes, is amended, and subsections (14) and
65(15) are added to that section, to read:
66     627.736  Required personal injury protection benefits;
67exclusions; priority; claims.--
68     (11)  DEMAND LETTER.--
69     (f)  Any insurer making a general business practice of not
70paying valid claims until receipt of the notice required by this
71subsection is engaging in an unfair trade practice under the
72insurance code and shall be liable for damages in the amount of
73three times the amount of benefits due or recovered resulting
74from failing to pay the claims until receiving the demand letter
75notices under this subsection. Any attorney who successfully
76prosecutes an action based upon an insurer's general business
77practice of not paying valid claims until receipt of the notice
78required by this subsection may be awarded a lodestar multiplier
79at the time that the court awards attorney's fees. The Attorney
80General shall investigate and initiate actions for any violation
81of this paragraph. In carrying out the duties and
82responsibilities under this paragraph, the Attorney General may:
83     1.  Administer oaths and affirmations.
84     2.  Subpoena witnesses or materials.
85     3.  Collect evidence for possible use in civil or criminal
86judicial proceedings.
87     4.  Request and receive the assistance of any state
88attorney or law enforcement agency in the investigation and
89prosecution of any violation of this paragraph.
90     5.  Seek any civil remedy provided by law.
91     (14)  EMERGENCY SERVICES AND CARE.--In addition to the
92medical benefits contained in paragraph (1)(a), additional
93benefits of up to $10,000 are available for emergency services
94and care as defined in s. 395.002(10) or inpatient services,
95provided in a hospital and by physicians in an emergency
96department or trauma center or inpatient departments when such
97services are continually rendered as a result of an admission
98through the emergency department or trauma center. The
99additional benefit for emergency services and care must be
100rendered to the named insured, the named insured's spouse,
101parents by blood or marriage, stepparents and stepchildren, and
102children, natural or adopted, who reside in the same household.
103Only emergency services and care, necessary inpatient services
104following admission through the emergency department or trauma
105center, or transport and treatment rendered by an ambulance
106provider licensed under part III of chapter 401 may be paid from
107the additional benefit. The additional benefit may only be used
108when such emergency services and care are initiated or rendered
109within 48 hours after the motor vehicle accident. All such bills
110shall be submitted on a UB 92 or a CMS 1500 form or their
111approved successor forms.
112     (15)  ATTORNEY'S FEES.--With respect to any dispute under
113ss. 627.730-627.7405 between the insured and the insurer or
114between an assignee of an insured's rights and the insurer, s.
115627.428 shall apply. A contingency risk multiplier may not be
116applied to any attorney's fee award in any dispute under ss.
117627.730-627.7405, except as permitted in paragraph (11)(f).
118     Section 3.  Subsection (1) of section 627.7401, Florida
119Statutes, is amended to read:
120     627.7401  Notification of insured's rights.--
121     (1)  The commission, by rule, shall adopt a form for the
122notification of insureds of their right to receive personal
123injury protection benefits under the Florida Motor Vehicle No-
124Fault Law. Such notice shall:
125     (a)  Include a description of the benefits provided by
126personal injury protection, including, but not limited to, the
127specific types of services for which medical benefits are paid,
128disability benefits, death benefits, significant exclusions from
129and limitations on personal injury protection benefits, when
130payments are due, how benefits are coordinated with other
131insurance benefits that the insured may have, penalties and
132interest that may be imposed on insurers for failure to make
133timely payments of benefits, and rights of parties regarding
134disputes as to benefits.
135     (b)  Notify the insured that:
136     1.  Pursuant to s. 626.9892, the Department of Financial
137Services may pay rewards of up to $25,000 to persons providing
138information leading to the arrest and conviction of persons
139committing crimes investigated by the Division of Insurance
140Fraud arising from violations of s. 440.105, s. 624.15, s.
141626.9541, s. 626.989, or s. 817.234.
142     2.  Solicitation of a person injured in a motor vehicle
143crash for purposes of filing personal injury protection or tort
144claims could be a violation of s. 817.234, s. 817.505, or the
145rules regulating The Florida Bar and should be immediately
146reported to the Division of Insurance Fraud if such conduct has
147taken place.
148     Section 4.  Section 627.7441, Florida Statutes, is created
149to read:
150     627.7441  Motorcycles; requirement for insurance
151coverage.--
152     (1)(a)  Every owner or registrant of a motorcycle as
153defined in s. 316.003 who is at least age 16 but younger than
154age 21, must maintain security as follows:
155     1.  Property damage coverage as required by s. 324.022.
156     2.a.  An insurance policy delivered or issued for delivery
157in this state by an authorized or eligible motor vehicle
158liability insurer. The required insurance coverage shall provide
159medical payments benefits of $10,000. Any policy of insurance
160represented or sold as providing the security required under
161this section shall be deemed to provide insurance for the
162payment of the required benefits; or
163     b.  Proof of financial responsibility pursuant to s.
164324.031(2), (3), or (4) and approved by the Department of
165Highway Safety and Motor Vehicles as affording security
166equivalent to that afforded by a policy of insurance or by self-
167insuring as authorized by s. 324.171. The person filing such
168security has all of the obligations and rights of an insurer.
169     (b)  The named insured may elect a deductible to apply to
170the named insured alone or to the named insured and dependent
171relatives residing in the same household but may not elect a
172deductible or modified coverage to apply to any other person
173covered under the policy.
174     (c)  Upon the renewal of an existing policy, an insurer
175shall offer to each applicant and to each policyholder
176deductibles in amounts of $250, $500, and $1,000. The deductible
177amount must be applied to 100 percent of the expenses and losses
178described in this section. After the deductible is met, each
179insured is eligible to receive up to $10,000 in total benefits
180as provided by the policy.
181     (d)  A named insured may not be prevented from electing a
182deductible under paragraph (b). Each election made by the named
183insured under this section shall result in an appropriate
184reduction of premium associated with that election.
185     (2)  An owner of a motor vehicle with respect to which
186security is required by this section who fails to have such
187security in effect at the time of an accident is personally
188liable for the payment of benefits under this section. With
189respect to such benefits, such an owner has all of the rights
190and obligations of an insurer.
191     (3)  The Financial Services Commission shall adopt rules
192pursuant to ss. 120.536(1) and 120.54 to implement this section.
193     Section 5.  Subsection (2) of section 316.068, Florida
194Statutes, is amended to read:
195     316.068  Crash report forms.--
196     (2)  Every crash report required to be made in writing must
197be made on the appropriate form approved by the department and
198must contain all the information required in the report,
199including therein:
200     (a)  The date, time, and location of the crash.
201     (b)  A description of the vehicles involved.
202     (c)  The names and addresses of the parties involved.
203     (d)  The names and addresses of all drivers and passengers
204in the vehicles involved.
205     (e)  The names and addresses of witnesses.
206     (f)  The name, badge number, and law enforcement agency of
207the officer investigating the crash.
208     (g)  The names of the insurance companies for the
209respective parties involved in the crash,
210
211unless not available. The absence of information in such written
212crash reports regarding the existence of passengers in the
213vehicles involved in the crash constitutes a rebuttable
214presumption that no such passengers were involved in the
215reported crash. Notwithstanding any other provisions of this
216section, a crash report produced electronically by a law
217enforcement officer must, at a minimum, contain the same
218information as is called for on those forms approved by the
219department.
220     Section 6.  Subsection (8) of section 322.21, Florida
221Statutes, is amended to read:
222     322.21  License fees; procedure for handling and collecting
223fees.--
224     (8)  Any person who applies for reinstatement following the
225suspension or revocation of the person's driver's license shall
226pay a service fee of $35 following a suspension, and $60
227following a revocation, which is in addition to the fee for a
228license. Any person who applies for reinstatement of a
229commercial driver's license following the disqualification of
230the person's privilege to operate a commercial motor vehicle
231shall pay a service fee of $60, which is in addition to the fee
232for a license. The department shall collect all of these fees at
233the time of reinstatement. The department shall issue proper
234receipts for such fees and shall promptly transmit all funds
235received by it as follows:
236     (a)  Of the $35 fee received from a licensee for
237reinstatement following a suspension, the department shall
238deposit $15 in the General Revenue Fund and $20 in the Highway
239Safety Operating Trust Fund.
240     (b)  Of the $60 fee received from a licensee for
241reinstatement following a revocation or disqualification, the
242department shall deposit $35 in the General Revenue Fund and $25
243in the Highway Safety Operating Trust Fund.
244
245If the revocation or suspension of the driver's license was for
246a violation of s. 316.193, or for refusal to submit to a lawful
247breath, blood, or urine test, an additional fee of $115 must be
248charged. However, only one $115 fee may be collected from one
249person convicted of violations arising out of the same incident.
250The department shall collect the $115 fee and deposit the fee
251into the Highway Safety Operating Trust Fund at the time of
252reinstatement of the person's driver's license, but the fee may
253not be collected if the suspension or revocation is overturned.
254If the revocation or suspension of the driver's license was for
255a conviction for a violation of s. 817.234(8) or (9), an
256additional fee of $180 is imposed for each such offense. The
257department shall collect and deposit the additional fee into the
258Highway Safety Operating Trust Fund at the time of reinstatement
259of the person's driver's license.
260     Section 7.  Subsection (9) is added to section 322.26,
261Florida Statutes, to read:
262     322.26  Mandatory revocation of license by department.--The
263department shall forthwith revoke the license or driving
264privilege of any person upon receiving a record of such person's
265conviction of any of the following offenses:
266     (9)  Conviction in any court having jurisdiction over
267offenses committed under s. 817.234(8) or (9).
268     Section 8.  Subsection (9) of section 817.234, Florida
269Statutes, is amended to read:
270     817.234  False and fraudulent insurance claims.--
271     (9)  A person may not organize, plan, or knowingly
272participate in an intentional motor vehicle crash or a scheme to
273create documentation of a motor vehicle crash that did not occur
274for the purpose of making motor vehicle tort claims or claims
275for personal injury protection benefits as required by s.
276627.736. Any person who violates this subsection commits a
277felony of the second degree, punishable as provided in s.
278775.082, s. 775.083, or s. 775.084. A person who is convicted of
279a violation of this subsection shall be sentenced to a minimum
280term of imprisonment of 2 years.
281     Section 9.  Section 817.2361, Florida Statutes, is amended
282to read:
283     817.2361  False or fraudulent proof of motor vehicle
284insurance card.--Any person who, with intent to deceive any
285other person, creates, markets, or presents a false or
286fraudulent proof of motor vehicle insurance card commits a
287felony of the third degree, punishable as provided in s.
288775.082, s. 775.083, or s. 775.084.
289     Section 10.  Section 19 of chapter 2003-411, 2003 Laws of
290Florida, is amended to read:
291     Section 19.  (1)  Effective October 1, 2012 2007, sections
292627.730, 627.731, 627.732, 627.733, 627.734, 627.736, 627.737,
293627.739, 627.7401, 627.7403, and 627.7405, Florida Statutes,
294constituting the Florida Motor Vehicle No-Fault Law, are
295repealed, unless reenacted by the Legislature during the 2011
2962006 Regular Session and such reenactment becomes law to take
297effect for policies issued or renewed on or after October 1,
2982011 2006.
299     (2)  Insurers are authorized to provide, in all policies
300issued or renewed after October 1, 2011 2006, that such policies
301may terminate on or after October 1, 2012 2007, as provided in
302subsection (1).
303     Section 11.  This act shall take effect October 1, 2006.


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