Senate Bill sb0016Cc1

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    Florida Senate - 2007                           CS for SB 16-C

    By the Committee on Transportation and Economic Development
    Appropriations; and Senator Fasano




    606-473-08

  1                      A bill to be entitled

  2         An act relating to motor vehicle insurance;

  3         amending s. 316.646, F.S.; requiring each

  4         person operating a motor vehicle to have in his

  5         or her possession proof of property damage

  6         liability coverage; conforming a

  7         cross-reference to changes made by the act;

  8         amending s. 320.02, F.S.; clarifying the

  9         requirements concerning insurance and liability

10         coverage for certain motor vehicles registered

11         in this state; amending s. 321.245, F.S.,

12         relating to the disposition of certain funds in

13         the Highway Safety Operating Trust Fund;

14         conforming a cross-reference; amending s.

15         324.022, F.S.; revising provisions requiring

16         the owner or operator of a motor vehicle to

17         maintain property damage liability coverage;

18         specifying the requirements that apply to such

19         a policy; providing definitions; requiring that

20         a nonresident owner or registrant of a motor

21         vehicle maintain property damage liability

22         coverage if the motor vehicle is in the state

23         longer than a specified period; providing an

24         exception for a member of the United States

25         Armed Forces who is on active duty outside the

26         United States; creating s. 324.0221, F.S.;

27         requiring insurers to report to the Department

28         of Highway Safety and Motor Vehicles the

29         renewal, cancellation, or nonrenewal of a

30         policy providing personal injury protection

31         coverage or motor vehicle property damage

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    Florida Senate - 2007                           CS for SB 16-C
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 1         liability coverage; authorizing the department

 2         to adopt rules for the reports; providing that

 3         failure to report as required is a violation of

 4         the Florida Insurance Code; requiring that an

 5         insurer notify the named insured that a

 6         cancelled or nonrenewed policy will be reported

 7         to the department; requiring that the

 8         department suspend the registration and

 9         driver's license of an owner or registrant of a

10         motor vehicle who fails to maintain the

11         required liability coverage; providing for the

12         reinstatement of a registration or driver's

13         license upon payment of certain fees; requiring

14         that a person obtain noncancelable coverage

15         following such reinstatement; providing for the

16         deposit and use of reinstatement fees; amending

17         ss. 627.7275 and 627.7295, F.S., relating to

18         motor vehicle insurance policies and contracts;

19         conforming provisions to changes made by the

20         act; providing that the act does not reenact

21         any provision of the Florida Motor Vehicle

22         No-Fault Law; providing an effective date.

23  

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

25  

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

27  Florida Statutes, are amended to read:

28         316.646  Security required; proof of security and

29  display thereof; dismissal of cases.--

30         (1)  Any person required by s. 324.022 to maintain

31  property damage liability security, required by s. 324.023 to

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    Florida Senate - 2007                           CS for SB 16-C
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 1  maintain liability security for bodily injury or death, or any

 2  person required by s. 627.733 to maintain personal injury

 3  protection security on a motor vehicle shall have in his or

 4  her immediate possession at all times while operating such

 5  motor vehicle proper proof of maintenance of the required

 6  security. Such proof shall be either a uniform

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

 8  department, a valid insurance policy, an insurance policy

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

10  be prescribed by the department.

11         (3)  Any person who violates this section commits a

12  nonmoving traffic infraction subject to the penalty provided

13  in chapter 318 and shall be required to furnish proof of

14  security as provided in this section. If any person charged

15  with a violation of this section fails to furnish proof, at or

16  before the scheduled court appearance date, that security was

17  in effect at the time of the violation, the court may

18  immediately suspend the registration and driver's license of

19  such person. Such license and registration may only be

20  reinstated only as provided in s. 324.0221 s. 627.733.

21         Section 2.  Paragraphs (a) and (d) of subsection (5) of

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

23         320.02  Registration required; application for

24  registration; forms.--

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

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

27  property damage liability coverage has been purchased as

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

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

30  that combined bodily liability insurance and property damage

31  liability insurance have been purchased when required under s.

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 1  627.7415 shall be provided in the manner prescribed by law by

 2  the applicant at the time of application for registration of

 3  any motor vehicle that is subject to such requirements owned

 4  as defined in s. 627.732. The issuing agent shall refuse to

 5  issue registration if such proof of purchase is not provided.

 6  Insurers shall furnish uniform proof-of-purchase cards in a

 7  form prescribed by the department and shall include the name

 8  of the insured's insurance company, the coverage

 9  identification number, and the make, year, and vehicle

10  identification number of the vehicle insured. The card shall

11  contain a statement notifying the applicant of the penalty

12  specified in s. 316.646(4). The card or insurance policy,

13  insurance policy binder, or certificate of insurance or a

14  photocopy of any of these; an affidavit containing the name of

15  the insured's insurance company, the insured's policy number,

16  and the make and year of the vehicle insured; or such other

17  proof as may be prescribed by the department shall constitute

18  sufficient proof of purchase. If an affidavit is provided as

19  proof, it shall be in substantially the following form:

20  

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

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

23  Damage Liability, and, when required, Bodily Injury

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

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

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

27  vehicle).... ...(Signature of Insured)...

28  

29  Such affidavit shall include the following warning:

30  

31  

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

 2  REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA

 3  LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS

 4  SUBJECT TO PROSECUTION.

 5  

 6  When an application is made through a licensed motor vehicle

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

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

 9  or certificate of insurance or the original affidavit from the

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

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

12  Vehicles for processing. By executing the aforesaid affidavit,

13  no licensed motor vehicle dealer will be liable in damages for

14  any inadequacy, insufficiency, or falsification of any

15  statement contained therein. A card shall also indicate the

16  existence of any bodily injury liability insurance voluntarily

17  purchased.

18         (d)  The verifying of proof of personal injury

19  protection insurance, proof of property damage liability

20  insurance, proof of combined bodily liability insurance and

21  property damage liability insurance, or proof of financial

22  responsibility insurance and the issuance or failure to issue

23  the motor vehicle registration under the provisions of this

24  chapter may not be construed in any court as a warranty of the

25  reliability or accuracy of the evidence of such proof. Neither

26  the department nor any tax collector is liable in damages for

27  any inadequacy, insufficiency, falsification, or unauthorized

28  modification of any item of the proof of personal injury

29  protection insurance, proof of property damage liability

30  insurance, proof of combined bodily liability insurance and

31  property damage liability insurance, or proof of financial

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    Florida Senate - 2007                           CS for SB 16-C
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 1  responsibility insurance either prior to, during, or

 2  subsequent to the verification of the proof. The issuance of a

 3  motor vehicle registration does not constitute prima facie

 4  evidence or a presumption of insurance coverage.

 5         Section 3.  Section 321.245, Florida Statutes, is

 6  amended to read:

 7         321.245  Disposition of certain funds in the Highway

 8  Safety Operating Trust Fund.--The director of the Florida

 9  Highway Patrol, after receiving recommendations from the

10  commander of the auxiliary, is authorized to purchase uniforms

11  and equipment for auxiliary law enforcement officers as

12  defined in s. 321.24 from funds described in s. 324.0221(3) s.

13  627.733(7). The amounts expended under this section shall not

14  exceed $50,000 in any one fiscal year.

15         Section 4.  Section 324.022, Florida Statutes, is

16  amended to read:

17         324.022  Financial responsibility for property

18  damage.--

19         (1)  Every owner or operator of a motor vehicle, which

20  motor vehicle is subject to the requirements of ss.

21  627.730-627.7405 and required to be registered in this state,

22  shall, by one of the methods established in s. 324.031 or by

23  having a policy that complies with s. 627.7275, establish and

24  maintain the ability to respond in damages for liability on

25  account of accidents arising out of the use of the motor

26  vehicle in the amount of $10,000 because of damage to, or

27  destruction of, property of others in any one crash. The

28  requirements of this section may be met by one of the methods

29  established in s. 324.031; by self-insuring as authorized by

30  s. 768.28(16); or by maintaining an insurance policy providing

31  coverage for property damage liability in the amount of at

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    Florida Senate - 2007                           CS for SB 16-C
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 1  least $10,000 because of damage to, or destruction of,

 2  property of others in any one accident arising out of the use

 3  of the motor vehicle. The requirements of this section may

 4  also be met by having a policy which provides coverage in the

 5  amount of at least $30,000 for combined property damage

 6  liability and bodily injury liability for any one crash

 7  arising out of the use of the motor vehicle. The policy, with

 8  respect to coverage for property damage liability, must meet

 9  the applicable requirements of s. 324.151, subject to the

10  usual policy exclusions that have been approved in policy

11  forms by the Office of Insurance Regulation. No insurer shall

12  have any duty to defend uncovered claims irrespective of their

13  joinder with covered claims.

14         (2)  As used in this section, the term:

15         (a)  "Motor vehicle" means any self-propelled vehicle

16  that has four or more wheels and that is of a type designed

17  and required to be licensed for use on the highways of this

18  state, and any trailer or semitrailer designed for use with

19  such vehicle. The term does not include:

20         1.  A mobile home.

21         2.  A motor vehicle that is used in mass transit and

22  designed to transport more than five passengers, exclusive of

23  the operator of the motor vehicle, and that is owned by a

24  municipality, transit authority, or political subdivision of

25  the state.

26         3.  A school bus as defined in s. 1006.25.

27         4.  A vehicle providing for-hire transportation that is

28  subject to the provisions of s. 324.031. A taxicab shall

29  maintain security as required under s. 324.032(1).

30         (b)  "Owner" means the person who holds legal title to

31  a motor vehicle or the debtor or lessee who has the right to

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 1  possession of a motor vehicle that is the subject of a

 2  security agreement or lease with an option to purchase.

 3         (3)  Each nonresident owner or registrant of a motor

 4  vehicle that, whether operated or not, has been physically

 5  present within this state for more than 90 days during the

 6  preceding 365 days shall maintain security as required by

 7  subsection (1) which is in effect continuously throughout the

 8  period the motor vehicle remains within this state.

 9         (4)  The owner or registrant of a motor vehicle is

10  exempt from the requirements of this section if she or he is a

11  member of the United States Armed Forces and is called to or

12  on active duty outside the United States in an emergency

13  situation. The exemption provided by this subsection applies

14  only as long as the member of the Armed Forces is on such

15  active duty outside the United States and applies only while

16  the vehicle is not operated by any person. Upon receipt of a

17  written request by the insured to whom the exemption provided

18  in this subsection applies, the insurer shall cancel the

19  coverages and return any unearned premium or suspend the

20  security required by this section. Notwithstanding s.

21  324.0221(3), the department may not suspend the registration

22  or operator's license of any owner or registrant of a motor

23  vehicle during the time she or he qualifies for an exemption

24  under this subsection. Any owner or registrant of a motor

25  vehicle who qualifies for an exemption under this subsection

26  shall immediately notify the department prior to and at the

27  end of the expiration of the exemption.

28         Section 5.  Section 324.0221, Florida Statutes, is

29  created to read:

30  

31  

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 1         324.0221  Reports by insurers to the department;

 2  suspension of driver's license and vehicle registrations;

 3  reinstatement.--

 4         (1)(a)  Each insurer that has issued a policy providing

 5  personal injury protection coverage or property damage

 6  liability coverage shall report the renewal, cancellation, or

 7  nonrenewal thereof to the department within 45 days after the

 8  effective date of each renewal, cancellation, or nonrenewal.

 9  Upon the issuance of a policy providing personal injury

10  protection coverage or property damage liability coverage to a

11  named insured not previously insured by the insurer during

12  that calendar year, the insurer shall report the issuance of

13  the new policy to the department within 30 days. The report

14  shall be in the form and format and contain any information

15  required by the department and must be provided in a format

16  that is compatible with the data-processing capabilities of

17  the department. The department may adopt rules regarding the

18  form and documentation required. Failure by an insurer to file

19  proper reports with the department as required by this

20  subsection or rules adopted with respect to the requirements

21  of this subsection constitutes a violation of the Florida

22  Insurance Code. These records shall be used by the department

23  only for enforcement and regulatory purposes, including the

24  generation by the department of data regarding compliance by

25  owners of motor vehicles with the requirements for financial

26  responsibility coverage.

27         (b)  With respect to an insurance policy providing

28  personal injury protection coverage or property damage

29  liability coverage, each insurer shall notify the named

30  insured, or the first named insured in the case of a

31  commercial fleet policy, in writing that any cancellation or

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 1  nonrenewal of the policy will be reported by the insurer to

 2  the department. The notice must also inform the named insured

 3  that failure to maintain personal injury protection coverage

 4  and property damage liability coverage on a motor vehicle when

 5  required by law may result in the loss of registration and

 6  driving privileges in this state and inform the named insured

 7  of the amount of the reinstatement fees required by this

 8  section. This notice is for informational purposes only, and

 9  an insurer is not civilly liable for failing to provide this

10  notice.

11         (2)  The department shall suspend, after due notice and

12  an opportunity to be heard, the registration and driver's

13  license of any owner or registrant of a motor vehicle with

14  respect to which security is required under ss. 324.022 and

15  627.733 upon:

16         (a)  The department's records showing that the owner or

17  registrant of such motor vehicle did not have in full force

18  and effect when required security that complies with the

19  requirements of ss. 324.022 and 627.733; or

20         (b)  Notification by the insurer to the department, in

21  a form approved by the department, of cancellation or

22  termination of the required security.

23         (3)  An operator or owner whose driver's license or

24  registration has been suspended under this section or s.

25  316.646 may effect its reinstatement upon compliance with the

26  requirements of this section and upon payment to the

27  department of a nonrefundable reinstatement fee of $150 for

28  the first reinstatement. The reinstatement fee is $250 for the

29  second reinstatement and $500 for each subsequent

30  reinstatement during the 3 years following the first

31  reinstatement. A person reinstating her or his insurance under

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 1  this subsection must also secure noncancelable coverage as

 2  described in ss. 324.021(8), 324.023, and 627.7275(2) and

 3  present to the appropriate person proof that the coverage is

 4  in force on a form adopted by the department, and such proof

 5  shall be maintained for 2 years. If the person does not have a

 6  second reinstatement within 3 years after her or his initial

 7  reinstatement, the reinstatement fee is $150 for the first

 8  reinstatement after that 3-year period. If a person's license

 9  and registration are suspended under this section or s.

10  316.646, only one reinstatement fee must be paid to reinstate

11  the license and the registration. All fees shall be collected

12  by the department at the time of reinstatement. The department

13  shall issue proper receipts for such fees and shall promptly

14  deposit those fees in the Highway Safety Operating Trust Fund.

15  One-third of the fees collected under this subsection shall be

16  distributed from the Highway Safety Operating Trust Fund to

17  the local governmental entity or state agency that employed

18  the law enforcement officer seizing the license plate pursuant

19  to s. 324.201. The funds may be used by the local governmental

20  entity or state agency for any authorized purpose.

21         Section 6.  Section 627.7275, Florida Statutes, is

22  amended to read:

23         627.7275  Motor vehicle liability.--

24         (1)  A motor vehicle insurance policy providing

25  personal injury protection as set forth in s. 627.736 may not

26  be delivered or issued for delivery in this state with respect

27  to any specifically insured or identified motor vehicle

28  registered or principally garaged in this state unless the

29  policy also provides coverage for property damage liability as

30  required by s. 324.022. in the amount of at least $10,000

31  because of damage to, or destruction of, property of others in

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 1  any one accident arising out of the use of the motor vehicle

 2  or unless the policy provides coverage in the amount of at

 3  least $30,000 for combined property damage liability and

 4  bodily injury liability in any one accident arising out of the

 5  use of the motor vehicle. The policy, as to coverage of

 6  property damage liability, must meet the applicable

 7  requirements of s. 324.151, subject to the usual policy

 8  exclusions that have been approved in policy forms by the

 9  office.

10         (2)(a)  Insurers writing motor vehicle insurance in

11  this state shall make available, subject to the insurers'

12  usual underwriting restrictions:

13         1.  Coverage under policies as described in subsection

14  (1) to any applicant for private passenger motor vehicle

15  insurance coverage who is seeking the coverage in order to

16  reinstate the applicant's driving privileges in this state

17  when the driving privileges were revoked or suspended pursuant

18  to s. 316.646 or s. 324.0221 s. 627.733 due to the failure of

19  the applicant to maintain required security.

20         2.  Coverage under policies as described in subsection

21  (1), which also provides liability coverage for bodily injury,

22  death, and property damage arising out of the ownership,

23  maintenance, or use of the motor vehicle in an amount not less

24  than the limits described in s. 324.021(7) and conforms to the

25  requirements of s. 324.151, to any applicant for private

26  passenger motor vehicle insurance coverage who is seeking the

27  coverage in order to reinstate the applicant's driving

28  privileges in this state after such privileges were revoked or

29  suspended under s. 316.193 or s. 322.26(2) for driving under

30  the influence.

31  

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 1         (b)  The policies described in paragraph (a) shall be

 2  issued for a period of at least 6 months and as to the minimum

 3  coverages required under this section shall not be cancelable

 4  by the insured for any reason or by the insurer after a period

 5  not to exceed 30 days during which the insurer must complete

 6  underwriting of the policy. After the insurer has completed

 7  underwriting the policy within the 30-day period, the insurer

 8  shall notify the Department of Highway Safety and Motor

 9  Vehicles that the policy is in full force and effect and the

10  policy shall not be cancelable for the remainder of the policy

11  period. A premium shall be collected and coverage shall be in

12  effect for the 30-day period during which the insurer is

13  completing the underwriting of the policy whether or not the

14  person's driver license, motor vehicle tag, and motor vehicle

15  registration are in effect. Once the noncancelable provisions

16  of the policy become effective, the coverage or risk shall not

17  be changed during the policy period and the premium shall be

18  nonrefundable. If, during the pendency of the 2-year proof of

19  insurance period required under s. 324.0221 s. 627.733(7) or

20  during the 3-year proof of financial responsibility required

21  under s. 324.131, whichever is applicable, the insured obtains

22  additional coverage or coverage for an additional risk or

23  changes territories, the insured must obtain a new 6-month

24  noncancelable policy in accordance with the provisions of this

25  section. However, if the insured must obtain a new 6-month

26  policy and obtains the policy from the same insurer, the

27  policyholder shall receive credit on the new policy for any

28  premium paid on the previously issued policy.

29         (c)  This subsection controls to the extent of any

30  conflict with any other section.

31  

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 1         (d)  An insurer issuing a policy subject to this

 2  section may cancel the policy if, during the policy term, the

 3  named insured or any other operator, who resides in the same

 4  household or customarily operates an automobile insured under

 5  the policy, has his or her driver's license suspended or

 6  revoked.

 7         (e)  Nothing in this subsection requires an insurer to

 8  offer a policy of insurance to an applicant if such offer

 9  would be inconsistent with the insurer's underwriting

10  guidelines and procedures.

11         Section 7.  Paragraph (a) of subsection (1) of section

12  627.7295, Florida Statutes, is amended to read:

13         627.7295  Motor vehicle insurance contracts.--

14         (1)  As used in this section, the term:

15         (a)  "Policy" means a motor vehicle insurance policy

16  that provides personal injury protection coverage, and

17  property damage liability coverage, or both.

18         Section 8.  This act does not reenact any provision of

19  the Florida Motor Vehicle No-Fault Law.

20         Section 9.  This act shall take effect upon becoming a

21  law.

22  

23  

24  

25  

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