Florida Senate - 2021 SENATOR AMENDMENT
Bill No. CS for CS for SB 54
Ì670924/Î670924
LEGISLATIVE ACTION
Senate . House
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Floor: 1c/AD/2R .
04/14/2021 07:01 PM .
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Senator Farmer moved the following:
1 Senate Amendment to Amendment (824756)
2
3 Delete lines 1681 - 1998
4 and insert:
5 (a) Every motor vehicle liability insurance policy
6 furnished as proof of financial responsibility under s. 324.031
7 must include medical payments coverage at a limit of $5,000. The
8 insurer must also offer medical payments coverage at a limit of
9 $10,000 and may also offer medical payments coverage at any
10 limit greater than $5,000.
11 (b) The insurer must offer medical payments coverage with
12 no deductible. The insurer may also offer medical payments
13 coverage with a deductible not to exceed $500.
14 (c) Each motor vehicle liability insurance policy furnished
15 as proof of financial responsibility under s. 324.031 is deemed
16 to have:
17 1. Medical payments coverage to a limit of $10,000, unless
18 the insurer obtains a named insured’s written refusal of medical
19 payments coverage or written selection of medical payments
20 coverage at a limit other than $10,000, but not less than
21 $5,000. The rejection or selection of coverage at a limit other
22 than $10,000 must be made on a form approved by the office.
23 2. No medical payments coverage deductible, unless the
24 insurer obtains a named insured’s written selection of a
25 deductible up to $500. The selection of a deductible must be
26 made on a form approved by the office.
27 (d)1. The forms referenced in subparagraphs (c)1. and 2.
28 must fully advise the applicant of the nature of the coverage
29 being rejected or the policy limit or deductible being selected.
30 If the form is signed by a named insured, it is conclusively
31 presumed that there was an informed, knowing rejection of the
32 coverage or election of the policy limit or deductible.
33 2. Unless a named insured requests in writing the coverage
34 specified in this section, it need not be provided in or
35 supplemental to any other policy that renews, insures, extends,
36 changes, supersedes, or replaces an existing policy if a named
37 insured has rejected the coverage specified in this section or
38 has selected an alternative coverage limit or deductible. At
39 least annually, the insurer shall provide to the named insured a
40 notice of the availability of such coverage in a form approved
41 by the office. The notice must be part of, and attached to, the
42 notice of premium and must provide for a means to allow a named
43 insured to request medical payments coverage at the limits and
44 deductibles required to be offered under this section. The
45 notice must be given in a manner approved by the office. Receipt
46 of this notice does not constitute an affirmative waiver of the
47 insured’s right to medical payments coverage if a named insured
48 has not signed a selection or rejection form.
49 (e) This section may not be construed to limit any other
50 coverage made available by an insurer.
51 (2) Upon receiving notice of an accident that is
52 potentially covered by medical payments coverage benefits, the
53 insurer must reserve $5,000 of medical payments coverage
54 benefits for payment to physicians licensed under chapter 458 or
55 chapter 459 or dentists licensed under chapter 466 who provide
56 emergency services and care, as defined in s. 395.002, or who
57 provide hospital inpatient care. The amount required to be held
58 in reserve may be used only to pay claims from such physicians
59 or dentists until 30 days after the date the insurer receives
60 notice of the accident. After the 30-day period, any amount of
61 the reserve for which the insurer has not received notice of
62 such claims may be used by the insurer to pay other claims. This
63 subsection does not require an insurer to establish a claim
64 reserve for insurance accounting purposes.
65 (3) An insurer providing medical payments coverage benefits
66 may not:
67 (a) Seek a lien on any recovery in tort by judgment,
68 settlement, or otherwise for medical payments coverage benefits,
69 regardless of whether suit has been filed or settlement has been
70 reached without suit; or
71 (b) Bring a cause of action against a person to whom or for
72 whom medical payments coverage benefits were paid, except when
73 medical payments coverage benefits were paid by reason of fraud
74 committed by that person.
75 (4) An insurer providing medical payments coverage may
76 include provisions in its policy allowing for subrogation for
77 medical payments coverage benefits paid if the expenses giving
78 rise to the payments were caused by the wrongful act or omission
79 of another who is not also an insured under the policy paying
80 the medical payments coverage benefits. However, this
81 subrogation right is inferior to the rights of the injured
82 insured and is available only after all the insured’s damages
83 are recovered and the insured is made whole. An insured who
84 obtains a recovery from a third party of the full amount of the
85 damages sustained and delivers a release or satisfaction that
86 impairs a medical payments insurer’s subrogation right is liable
87 to the insurer for repayment of medical payments coverage
88 benefits less any expenses of acquiring the recovery, including
89 a prorated share of attorney fees and costs, and shall hold that
90 net recovery in trust to be delivered to the medical payments
91 insurer. The insurer may not include any provision in its policy
92 allowing for subrogation for any death benefit paid.
93 Section 45. Subsections (1) and (7) of section 627.727,
94 Florida Statutes, are amended to read:
95 627.727 Motor vehicle insurance; uninsured and underinsured
96 vehicle coverage; insolvent insurer protection.—
97 (1) A No motor vehicle liability insurance policy that
98 which provides bodily injury liability coverage may not shall be
99 delivered or issued for delivery in this state with respect to
100 any specifically insured or identified motor vehicle registered
101 or principally garaged in this state, unless uninsured motor
102 vehicle coverage is provided therein or supplemental thereto for
103 the protection of persons insured thereunder who are legally
104 entitled to recover damages from owners or operators of
105 uninsured motor vehicles because of bodily injury, sickness, or
106 disease, including death, resulting therefrom. However, the
107 coverage required under this section is not applicable if when,
108 or to the extent that, an insured named in the policy makes a
109 written rejection of the coverage on behalf of all insureds
110 under the policy. If When a motor vehicle is leased for a period
111 of 1 year or longer and the lessor of such vehicle, by the terms
112 of the lease contract, provides liability coverage on the leased
113 vehicle, the lessee of such vehicle has shall have the sole
114 privilege to reject uninsured motorist coverage or to select
115 lower limits than the bodily injury liability limits, regardless
116 of whether the lessor is qualified as a self-insurer pursuant to
117 s. 324.171. Unless an insured, or a lessee having the privilege
118 of rejecting uninsured motorist coverage, requests such coverage
119 or requests higher uninsured motorist limits in writing, the
120 coverage or such higher uninsured motorist limits need not be
121 provided in or supplemental to any other policy that which
122 renews, extends, changes, supersedes, or replaces an existing
123 policy with the same bodily injury liability limits when an
124 insured or lessee had rejected the coverage. When an insured or
125 lessee has initially selected limits of uninsured motorist
126 coverage lower than her or his bodily injury liability limits,
127 higher limits of uninsured motorist coverage need not be
128 provided in or supplemental to any other policy that which
129 renews, extends, changes, supersedes, or replaces an existing
130 policy with the same bodily injury liability limits unless an
131 insured requests higher uninsured motorist coverage in writing.
132 The rejection or selection of lower limits must shall be made on
133 a form approved by the office. The form must shall fully advise
134 the applicant of the nature of the coverage and must shall state
135 that the coverage is equal to bodily injury liability limits
136 unless lower limits are requested or the coverage is rejected.
137 The heading of the form must shall be in 12-point bold type and
138 must shall state: “You are electing not to purchase certain
139 valuable coverage that which protects you and your family or you
140 are purchasing uninsured motorist limits less than your bodily
141 injury liability limits when you sign this form. Please read
142 carefully.” If this form is signed by a named insured, it will
143 be conclusively presumed that there was an informed, knowing
144 rejection of coverage or election of lower limits on behalf of
145 all insureds. The insurer shall notify the named insured at
146 least annually of her or his options as to the coverage required
147 by this section. Such notice must shall be part of, and attached
148 to, the notice of premium, must shall provide for a means to
149 allow the insured to request such coverage, and must shall be
150 given in a manner approved by the office. Receipt of this notice
151 does not constitute an affirmative waiver of the insured’s right
152 to uninsured motorist coverage if where the insured has not
153 signed a selection or rejection form. The coverage described
154 under this section must shall be over and above, but may shall
155 not duplicate, the benefits available to an insured under any
156 workers’ compensation law, personal injury protection benefits,
157 disability benefits law, or similar law; under any automobile
158 medical payments expense coverage; under any motor vehicle
159 liability insurance coverage; or from the owner or operator of
160 the uninsured motor vehicle or any other person or organization
161 jointly or severally liable together with such owner or operator
162 for the accident,; and such coverage must shall cover the
163 difference, if any, between the sum of such benefits and the
164 damages sustained, up to the maximum amount of such coverage
165 provided under this section. The amount of coverage available
166 under this section may shall not be reduced by a setoff against
167 any coverage, including liability insurance. Such coverage does
168 shall not inure directly or indirectly to the benefit of any
169 workers’ compensation or disability benefits carrier or any
170 person or organization qualifying as a self-insurer under any
171 workers’ compensation or disability benefits law or similar law.
172 (7) The legal liability of an uninsured motorist coverage
173 insurer includes does not include damages in tort for pain,
174 suffering, disability or physical impairment, disfigurement,
175 mental anguish, and inconvenience, and the loss of capacity for
176 the enjoyment of life experienced in the past and to be
177 experienced in the future unless the injury or disease is
178 described in one or more of paragraphs (a)-(d) of s. 627.737(2).
179 Section 46. Section 627.7275, Florida Statutes, is amended
180 to read:
181 627.7275 Motor vehicle liability.—
182 (1) A motor vehicle insurance policy providing personal
183 injury protection as set forth in s. 627.736 may not be
184 delivered or issued for delivery in this state for a with
185 respect to any specifically insured or identified motor vehicle
186 registered or principally garaged in this state must provide
187 bodily injury liability coverage, $5,000 of medical payments
188 coverage, and unless the policy also provides coverage for
189 property damage liability coverage as required under by s.
190 324.022.
191 (2)(a) Insurers writing motor vehicle insurance in this
192 state shall make available, subject to the insurers’ usual
193 underwriting restrictions:
194 1. Coverage under policies as described in subsection (1)
195 to an applicant for private passenger motor vehicle insurance
196 coverage who is seeking the coverage in order to reinstate the
197 applicant’s driving privileges in this state if the driving
198 privileges were revoked or suspended pursuant to s. 316.646 or
199 s. 324.0221 due to the failure of the applicant to maintain
200 required security.
201 2. Coverage under policies as described in subsection (1),
202 which includes bodily injury also provides liability coverage
203 and property damage liability coverage, for bodily injury,
204 death, and property damage arising out of the ownership,
205 maintenance, or use of the motor vehicle in an amount not less
206 than the minimum limits required under described in s.
207 324.021(7) or s. 324.023 and which conforms to the requirements
208 of s. 324.151, to an applicant for private passenger motor
209 vehicle insurance coverage who is seeking the coverage in order
210 to reinstate the applicant’s driving privileges in this state
211 after such privileges were revoked or suspended under s. 316.193
212 or s. 322.26(2) for driving under the influence.
213 (b) The policies described in paragraph (a) must shall be
214 issued for at least 6 months and, as to the minimum coverages
215 required under this section, may not be canceled by the insured
216 for any reason or by the insurer after 60 days, during which
217 period the insurer is completing the underwriting of the policy.
218 After the insurer has completed underwriting the policy, the
219 insurer shall notify the Department of Highway Safety and Motor
220 Vehicles that the policy is in full force and effect and is not
221 cancelable for the remainder of the policy period. A premium
222 must shall be collected and the coverage is in effect for the
223 60-day period during which the insurer is completing the
224 underwriting of the policy, whether or not the person’s driver
225 license, motor vehicle tag, and motor vehicle registration are
226 in effect. Once the noncancelable provisions of the policy
227 become effective, the bodily injury liability and property
228 damage liability coverages for bodily injury, property damage,
229 and personal injury protection may not be reduced below the
230 minimum limits required under s. 324.021 or s. 324.023 during
231 the policy period.
232 (c) This subsection controls to the extent of any conflict
233 with any other section.
234 (d) An insurer issuing a policy subject to this section may
235 cancel the policy if, during the policy term, the named insured,
236 or any other operator who resides in the same household or
237 customarily operates an automobile insured under the policy, has
238 his or her driver license suspended or revoked.
239 (e) This subsection does not require an insurer to offer a
240 policy of insurance to an applicant if such offer would be
241 inconsistent with the insurer’s underwriting guidelines and
242 procedures.
243 Section 47. Effective upon this act becoming a law, section
244 627.7278, Florida Statutes, is created to read:
245 627.7278 Applicability and construction; notice to
246 policyholders.—
247 (1) As used in this section, the term “minimum security
248 requirements” means security that enables a person to respond in
249 damages for liability on account of crashes arising out of the
250 ownership, maintenance, or use of a motor vehicle, in the
251 amounts required by s. 324.022(1), as amended by this act.
252 (2) Effective January 1, 2022:
253 (a) Motor vehicle insurance policies issued or renewed on
254 or after that date may not include personal injury protection.
255 (b) All persons subject to s. 324.022, s. 324.032, s.
256 627.7415, or s. 627.742 must maintain at least minimum security
257 requirements.
258 (c) Any new or renewal motor vehicle insurance policy
259 delivered or issued for delivery in this state must provide
260 coverage that complies with minimum security requirements.
261 (d) An existing motor vehicle insurance policy issued
262 before that date which provides personal injury protection and
263 property damage liability coverage that meets the requirements
264 of s. 324.022 on December 31, 2021, but which does not meet
265 minimum security requirements on or after January 1, 2022, is
266 deemed to meet minimum security requirements until such policy
267 is renewed, nonrenewed, or canceled on or after January 1, 2022.
268 Sections 627.730-627.7405, 400.9905, 400.991, 456.057, 456.072,
269 627.7263, 627.727, 627.748, 626.9541(1)(i), and 817.234, Florida
270 Statutes 2020, remain in full force and effect for motor vehicle
271 accidents covered under a policy issued under the Florida Motor
272 Vehicle No-Fault Law before January 1, 2022, until the policy is
273 renewed, nonrenewed, or canceled on or after January 1, 2022.
274 (3) Each insurer shall allow each insured who has a new or
275 renewal policy providing personal injury protection which
276 becomes effective before January 1, 2022, and whose policy does
277 not meet minimum security requirements on or after January 1,
278 2022, to change coverages so as to eliminate personal injury
279 protection and obtain coverage providing minimum security
280 requirements, which shall be effective on or after January 1,
281 2022. The insurer is not required to provide coverage complying
282 with minimum security requirements in such policies if the
283 insured does not pay the required premium, if any, by January 1,
284 2022, or such later date as the insurer may allow. The insurer
285 also shall offer each insured medical payments coverage pursuant
286 to s. 627.7265. Any reduction in the premium must be refunded by
287 the insurer. The insurer may not impose on the insured an
288 additional fee or charge that applies solely to a change in
289 coverage; however, the insurer may charge an additional required
290 premium that is actuarially indicated.
291 (4) By September 1, 2021, each motor vehicle insurer shall
292 provide notice of this section to each motor vehicle
293 policyholder who is subject to this section. The notice is
294 subject to approval by the office and must clearly inform the
295 policyholder that:
296 (a) The Florida Motor Vehicle No-Fault Law is repealed
297 effective January 1, 2022, and that on or after that date, the
298 insured is no longer required to maintain personal injury
299 protection insurance coverage, that personal injury protection
300 coverage is no longer available for purchase in this state, and
301 that all new or renewal policies issued on or after that date
302 will not contain that coverage.
303 (b) Effective January 1, 2022, a person subject to the
304 financial responsibility requirements of s. 324.022 must
305 maintain minimum security requirements that enable the person to
306 respond to damages for liability on account of accidents arising
307 out of the use of a motor vehicle in the following amounts:
308 1. Twenty-five thousand dollars for bodily injury to, or
309 the death of, one person in any one crash and, subject to such
310 limits for one person, in the amount of $50,000 for bodily
311 injury to, or the death of, two or more persons in any one
312 crash; and
313 2. Ten thousand dollars for damage to, or destruction of,
314 the property of others in any one crash.
315 (c) Bodily injury liability coverage protects the insured,
316 up to the coverage limits, against loss if the insured is
317 legally responsible for the death of or bodily injury to others
318 in a motor vehicle accident.
319 (d) Effective January 1, 2022, each policyholder of motor
320 vehicle liability insurance purchased as proof of financial
321 responsibility must include medical payments coverage benefits
322 that comply with s. 627.7265. The insurer must include medical
323 payments coverage at a limit of $5,000 and offer medical
324 payments coverage at a limit of $10,000