Senate Bill sb0846c2

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    Florida Senate - 2007                     CS for CS for SB 846

    By the Committees on Banking and Insurance; Transportation;
    and Senator Jones




    597-2597-07

  1                      A bill to be entitled

  2         An act relating to motor vehicle financial

  3         responsibility; creating s. 324.023, F.S.;

  4         requiring proof of increased financial

  5         responsibility for bodily injury or death

  6         caused by owners or operators found guilty of a

  7         DUI offense or who had a license or driving

  8         privilege revoked or suspended under a

  9         specified provision; amending ss. 316.646 and

10         320.02, F.S.; conforming provisions; amending

11         s. 627.733, F.S.; providing an additional

12         cross-reference concerning motor vehicle

13         security following motor vehicle license or

14         registration suspension; amending s. 627.7261,

15         F.S.; prohibiting an insurer from taking

16         certain actions solely because an insured or

17         specified person serves as a volunteer driver

18         for a nonprofit agency or charitable

19         organization; providing an effective date.

20  

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

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23         Section 1.  Section 324.023, Florida Statutes, is

24  created to read:

25         324.023  Financial responsibility for bodily injury or

26  death.--In addition to any other financial responsibility

27  required by law, every owner or operator of a motor vehicle

28  that is required to be registered in this state, or that is

29  located within this state, and who, regardless of adjudication

30  of guilt, has been found guilty of or entered a plea of guilty

31  or nolo contendere to, a charge of DUI pursuant to s. 316.193

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    Florida Senate - 2007                     CS for CS for SB 846
    597-2597-07




 1  after October 1, 2007, shall, by one of the methods

 2  established in s. 324.031(1), (2), or (3), establish and

 3  maintain the ability to respond in damages for liability on

 4  account of accidents arising out of the use of a motor vehicle

 5  in the amount of $100,000 because of bodily injury to, or

 6  death of, one person in any one crash and, subject to such

 7  limits for one person, in the amount of $300,000 because of

 8  bodily injury to, or death of, two or more persons in any one

 9  crash and in the amount of $50,000 because of property damage

10  in any one crash. If the owner or operator chooses to

11  establish and maintain such ability by posting a bond or

12  furnishing a certificate of deposit pursuant to s. 324.031(2)

13  or (3), such bond or certificate of deposit must be in an

14  amount not less than $350,000.

15         Section 2.  Subsections (1) and (3) of section 316.646,

16  Florida Statutes, are amended to read:

17         316.646  Security required; proof of security and

18  display thereof; dismissal of cases.--

19         (1)  Any person required by s. 324.023 to maintain

20  liability security for bodily injury or death or any person

21  required by s. 627.733 to maintain personal injury protection

22  security on a motor vehicle shall have in his or her immediate

23  possession at all times while operating such motor vehicle

24  proper proof of maintenance of the required security required

25  by s. 627.733. Such proof shall be either a uniform

26  proof-of-insurance card in a form prescribed by the

27  department, a valid insurance policy, an insurance policy

28  binder, a certificate of insurance, or such other proof as may

29  be prescribed by the department.

30         (3)  Any person who violates this section commits is

31  guilty of a nonmoving traffic infraction subject to the

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    Florida Senate - 2007                     CS for CS for SB 846
    597-2597-07




 1  penalty provided in chapter 318 and shall be required to

 2  furnish proof of security as provided in this section. If any

 3  person charged with a violation of this section fails to

 4  furnish proof, at or before the scheduled court appearance

 5  date, that security was in effect at the time of the

 6  violation, the court may immediately suspend the registration

 7  and driver's license of such person. Such license and

 8  registration may only be reinstated as provided in s. 627.733.

 9         Section 3.  Paragraphs (a) and (b) of subsection (5) of

10  section 320.02, Florida Statutes, are amended to read:

11         320.02  Registration required; application for

12  registration; forms.--

13         (5)(a)  Proof that personal injury protection benefits

14  have been purchased when required under s. 627.733, that

15  property damage liability coverage has been purchased as

16  required under s. 324.022, that bodily injury or death

17  coverage has been purchased if required under s. 324.023, and

18  that combined bodily liability insurance and property damage

19  liability insurance have been purchased when required under s.

20  627.7415 shall be provided in the manner prescribed by law by

21  the applicant at the time of application for registration of

22  any motor vehicle owned as defined in s. 627.732. The issuing

23  agent shall refuse to issue registration if such proof of

24  purchase is not provided. Insurers shall furnish uniform

25  proof-of-purchase cards in a form prescribed by the department

26  and shall include the name of the insured's insurance company,

27  the coverage identification number, the make, year, and

28  vehicle identification number of the vehicle insured. The card

29  shall contain a statement notifying the applicant of the

30  penalty specified in s. 316.646(4). The card or insurance

31  policy, insurance policy binder, or certificate of insurance

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    Florida Senate - 2007                     CS for CS for SB 846
    597-2597-07




 1  or a photocopy of any of these; an affidavit containing the

 2  name of the insured's insurance company, the insured's policy

 3  number, and the make and year of the vehicle insured; or such

 4  other proof as may be prescribed by the department shall

 5  constitute sufficient proof of purchase. If an affidavit is

 6  provided as proof, it shall be in substantially the following

 7  form:

 8  

 9  Under penalty of perjury, I ...(Name of insured)... do hereby

10  certify that I have ...(Personal Injury Protection, Property

11  Damage Liability, and, when required, Bodily Injury

12  Liability)... Insurance currently in effect with ...(Name of

13  insurance company)... under ...(policy number)... covering

14  ...(make, year, and vehicle identification number of

15  vehicle)....  ...(Signature of Insured)...

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17  Such affidavit shall include the following warning:

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19  WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE

20  REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA

21  LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS

22  SUBJECT TO PROSECUTION.

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24  When an application is made through a licensed motor vehicle

25  dealer as required in s. 319.23, the original or a photostatic

26  copy of such card, insurance policy, insurance policy binder,

27  or certificate of insurance or the original affidavit from the

28  insured shall be forwarded by the dealer to the tax collector

29  of the county or the Department of Highway Safety and Motor

30  Vehicles for processing.  By executing the aforesaid

31  affidavit, no licensed motor vehicle dealer will be liable in

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    Florida Senate - 2007                     CS for CS for SB 846
    597-2597-07




 1  damages for any inadequacy, insufficiency, or falsification of

 2  any statement contained therein. A card shall also indicate

 3  the existence of any bodily injury liability insurance

 4  voluntarily purchased.

 5         (b)  When an operator who owns a motor vehicle is

 6  subject to the financial responsibility requirements of

 7  chapter 324, including ss. s. 324.022 and 324.023, such

 8  operator shall provide proof of compliance with such financial

 9  responsibility requirements at the time of registration of any

10  such motor vehicle by one of the methods constituting

11  sufficient proof of purchase under paragraph (a). The issuing

12  agent shall refuse to register a motor vehicle if such proof

13  of purchase is not provided or if one of the other methods of

14  proving financial responsibility as set forth in s. 324.031 is

15  not met.

16         Section 4.  Subsection (7) of section 627.733, Florida

17  Statutes, is amended to read:

18         627.733  Required security.--

19         (7)  Any operator or owner whose driver's license or

20  registration has been suspended pursuant to this section or s.

21  316.646 may effect its reinstatement upon compliance with the

22  requirements of this section and upon payment to the

23  Department of Highway Safety and Motor Vehicles of a

24  nonrefundable reinstatement fee of $150 for the first

25  reinstatement. Such reinstatement fee shall be $250 for the

26  second reinstatement and $500 for each subsequent

27  reinstatement during the 3 years following the first

28  reinstatement. Any person reinstating her or his insurance

29  under this subsection must also secure noncancelable coverage

30  as described in s. 324.023, if applicable, such proof to be

31  maintained for 3 years, and s. 627.7275(2), such proof to be

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    Florida Senate - 2007                     CS for CS for SB 846
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 1  maintained for 2 years, and present to the appropriate person

 2  proof that the coverage is in force on a form promulgated by

 3  the Department of Highway Safety and Motor Vehicles, such

 4  proof to be maintained for 2 years. If the person does not

 5  have a second reinstatement within 3 years after her or his

 6  initial reinstatement, the reinstatement fee shall be $150 for

 7  the first reinstatement after that 3-year period. In the event

 8  that a person's license and registration are suspended

 9  pursuant to this section or s. 316.646, only one reinstatement

10  fee shall be paid to reinstate the license and the

11  registration. All fees shall be collected by the Department of

12  Highway Safety and Motor Vehicles at the time of

13  reinstatement. The Department of Highway Safety and Motor

14  Vehicles shall issue proper receipts for such fees and shall

15  promptly deposit those fees in the Highway Safety Operating

16  Trust Fund. One-third of the fee collected under this

17  subsection shall be distributed from the Highway Safety

18  Operating Trust Fund to the local government entity or state

19  agency which employed the law enforcement officer who seizes a

20  license plate pursuant to s. 324.201. Such funds may be used

21  by the local government entity or state agency for any

22  authorized purpose.

23         Section 5.  Section 627.7261, Florida Statutes, is

24  amended to read:

25         627.7261  Refusal to issue policy.--

26         (1)  An No insurer may not deny an application for

27  automobile liability insurance solely on the ground that

28  renewal of similar coverage has been denied by another insurer

29  or on the ground of an applicant's failure to disclose that

30  such denial has occurred.

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    Florida Senate - 2007                     CS for CS for SB 846
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 1         (2)(a)  An insurer may not deny an application for

 2  automobile liability insurance or impose a surcharge or

 3  otherwise increase the premium rate for an automobile

 4  liability policy solely on the basis that the applicant, a

 5  named insured, a member of the insured's household, or a

 6  person who customarily operates the insured's vehicle is a

 7  volunteer driver.

 8         (b)  As used in this section, the term "volunteer

 9  driver" means a person who provides services, including

10  transporting individuals or goods, without compensation in

11  excess of expenses to a private nonprofit agency as defined in

12  s. 273.01(3) or a charitable organization as defined in s.

13  737.501(2).

14         (c)  This section does not prohibit an insurer from

15  refusing to renew, imposing a surcharge on, or otherwise

16  increasing the premium rate for an automobile liability

17  insurance policy based upon factors other than the volunteer

18  status of the persons named in this subsection.

19         Section 6.  This act shall take effect upon becoming a

20  law.

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    Florida Senate - 2007                     CS for CS for SB 846
    597-2597-07




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                            CS/SB 846

 3                                 

 4  The committee substitute provides the following changes:

 5  1.   Clarifies and broadens the term "found guilty" of DUI to
         "regardless of adjudication of guilt, has been found
 6       guilty of, or entered a plea of, guilty or nolo
         contendere" to DUI.
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    2.   Clarifies that persons present proof to the Department of
 8       Highway Safety and Motor Vehicles of securing the
         increased liability coverage required under the bill,
 9       which must be noncancelable for 3 years.

10  3.   Prohibits insurers from denying an application for motor
         vehicle liability insurance, or imposing a surcharge or
11       otherwise increasing the premium for a policy solely on
         the basis that the applicant, a named insured, a member
12       of the insured's household, or a person who operates the
         insured's vehicle, is a "volunteer driver."
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    4.   Provides that this provision does not prohibit an insurer
14       from refusing to renew, imposing a surcharge on, or
         otherwise increasing premiums for a motor vehicle
15       liability policy based on factors other than the
         volunteer status of the person.
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    5.   Defines the term "volunteer driver."
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