Bill Text: FL S0420 | 2021 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Motor Vehicle Insurance Coverage Exclusions

Spectrum: Bipartisan Bill

Status: (Passed) 2021-06-17 - Chapter No. 2021-96 [S0420 Detail]

Download: Florida-2021-S0420-Comm_Sub.html

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       Florida Senate - 2021                              CS for SB 420
       
       
        
       By the Committee on Judiciary; and Senator Hooper
       
       
       
       
       
       590-02602-21                                           2021420c1
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle insurance coverage
    3         exclusions; creating s. 627.747, F.S.; providing that
    4         private passenger motor vehicle policies may exclude
    5         certain identified individuals from specified
    6         coverages under certain circumstances; requiring
    7         excluded drivers to meet certain requirements for
    8         financial responsibility; amending ss. 324.151,
    9         627.736, and 627.7407, F.S.; conforming provisions to
   10         changes made by the act; providing an effective date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Section 627.747, Florida Statutes, is created to
   15  read:
   16         627.747 Named driver exclusion.—
   17         (1) A private passenger motor vehicle policy may exclude an
   18  identified individual who is not a named insured from the
   19  following coverages while the identified individual is operating
   20  a motor vehicle, provided the identified individual is named on
   21  the declarations page or by endorsement and the named insured
   22  consents in writing to such exclusion:
   23         (a) Notwithstanding the Florida Motor Vehicle No-Fault Law,
   24  the personal injury protection coverage specifically applicable
   25  to the identified individual’s injuries, lost wages, and death
   26  benefits.
   27         (b) Property damage liability coverage.
   28         (c) Bodily injury liability coverage, if required by law
   29  and purchased by the named insured.
   30         (d) Uninsured motorist coverage for any damages sustained
   31  by the identified excluded individual, if the named insured has
   32  purchased such coverage.
   33         (e) Any coverage the named insured is not required by law
   34  to purchase.
   35         (2) A private passenger motor vehicle policy may not
   36  exclude coverage when:
   37         (a) The identified individual is injured while not
   38  operating a motor vehicle;
   39         (b) The exclusion is unfairly discriminatory under the
   40  Florida Insurance Code, as determined by the office; or
   41         (c) The exclusion is inconsistent with the underwriting
   42  rules filed by the insurer pursuant to s. 627.0651(13)(a).
   43         (3) A driver excluded pursuant to this section must:
   44         (a) Establish, maintain, and show proof of financial
   45  ability to respond for damages arising out of the ownership,
   46  maintenance, or use of a motor vehicle as required by chapter
   47  324; and
   48         (b) Maintain security as required by s. 627.733.
   49         Section 2. Paragraph (a) of subsection (1) of section
   50  324.151, Florida Statutes, is amended to read:
   51         324.151 Motor vehicle liability policies; required
   52  provisions.—
   53         (1) A motor vehicle liability policy to be proof of
   54  financial responsibility under s. 324.031(1), shall be issued to
   55  owners or operators under the following provisions:
   56         (a) An owner’s liability insurance policy must shall
   57  designate by explicit description or by appropriate reference
   58  all motor vehicles with respect to which coverage is thereby
   59  granted, must and shall insure the owner named therein, and,
   60  except for a named driver excluded under s. 627.747, must insure
   61  any other person as operator using such motor vehicle or motor
   62  vehicles with the express or implied permission of such owner
   63  against loss from the liability imposed by law for damage
   64  arising out of the ownership, maintenance, or use of such motor
   65  vehicle or motor vehicles within the United States or the
   66  Dominion of Canada, subject to limits, exclusive of interest and
   67  costs with respect to each such motor vehicle as is provided for
   68  under s. 324.021(7). Insurers may make available, with respect
   69  to property damage liability coverage, a deductible amount not
   70  to exceed $500. In the event of a property damage loss covered
   71  by a policy containing a property damage deductible provision,
   72  the insurer shall pay to the third-party claimant the amount of
   73  any property damage liability settlement or judgment, subject to
   74  policy limits, as if no deductible existed.
   75         Section 3. Subsection (1) of section 627.736, Florida
   76  Statutes, is amended to read:
   77         627.736 Required personal injury protection benefits;
   78  exclusions; priority; claims.—
   79         (1) REQUIRED BENEFITS.—An insurance policy complying with
   80  the security requirements of s. 627.733 must provide personal
   81  injury protection to the named insured, relatives residing in
   82  the same household unless excluded under s. 627.747, persons
   83  operating the insured motor vehicle, passengers in the motor
   84  vehicle, and other persons struck by the motor vehicle and
   85  suffering bodily injury while not an occupant of a self
   86  propelled vehicle, subject to subsection (2) and paragraph
   87  (4)(e), to a limit of $10,000 in medical and disability benefits
   88  and $5,000 in death benefits resulting from bodily injury,
   89  sickness, disease, or death arising out of the ownership,
   90  maintenance, or use of a motor vehicle as follows:
   91         (a) Medical benefits.—Eighty percent of all reasonable
   92  expenses for medically necessary medical, surgical, X-ray,
   93  dental, and rehabilitative services, including prosthetic
   94  devices and medically necessary ambulance, hospital, and nursing
   95  services if the individual receives initial services and care
   96  pursuant to subparagraph 1. within 14 days after the motor
   97  vehicle accident. The medical benefits provide reimbursement
   98  only for:
   99         1. Initial services and care that are lawfully provided,
  100  supervised, ordered, or prescribed by a physician licensed under
  101  chapter 458 or chapter 459, a dentist licensed under chapter
  102  466, a chiropractic physician licensed under chapter 460, or an
  103  advanced practice registered nurse registered under s. 464.0123
  104  or that are provided in a hospital or in a facility that owns,
  105  or is wholly owned by, a hospital. Initial services and care may
  106  also be provided by a person or entity licensed under part III
  107  of chapter 401 which provides emergency transportation and
  108  treatment.
  109         2. Upon referral by a provider described in subparagraph
  110  1., followup services and care consistent with the underlying
  111  medical diagnosis rendered pursuant to subparagraph 1. which may
  112  be provided, supervised, ordered, or prescribed only by a
  113  physician licensed under chapter 458 or chapter 459, a
  114  chiropractic physician licensed under chapter 460, a dentist
  115  licensed under chapter 466, or an advanced practice registered
  116  nurse registered under s. 464.0123, or, to the extent permitted
  117  by applicable law and under the supervision of such physician,
  118  osteopathic physician, chiropractic physician, or dentist, by a
  119  physician assistant licensed under chapter 458 or chapter 459 or
  120  an advanced practice registered nurse licensed under chapter
  121  464. Followup services and care may also be provided by the
  122  following persons or entities:
  123         a. A hospital or ambulatory surgical center licensed under
  124  chapter 395.
  125         b. An entity wholly owned by one or more physicians
  126  licensed under chapter 458 or chapter 459, chiropractic
  127  physicians licensed under chapter 460, advanced practice
  128  registered nurses registered under s. 464.0123, or dentists
  129  licensed under chapter 466 or by such practitioners and the
  130  spouse, parent, child, or sibling of such practitioners.
  131         c. An entity that owns or is wholly owned, directly or
  132  indirectly, by a hospital or hospitals.
  133         d. A physical therapist licensed under chapter 486, based
  134  upon a referral by a provider described in this subparagraph.
  135         e. A health care clinic licensed under part X of chapter
  136  400 which is accredited by an accrediting organization whose
  137  standards incorporate comparable regulations required by this
  138  state, or
  139         (I) Has a medical director licensed under chapter 458,
  140  chapter 459, or chapter 460;
  141         (II) Has been continuously licensed for more than 3 years
  142  or is a publicly traded corporation that issues securities
  143  traded on an exchange registered with the United States
  144  Securities and Exchange Commission as a national securities
  145  exchange; and
  146         (III) Provides at least four of the following medical
  147  specialties:
  148         (A) General medicine.
  149         (B) Radiography.
  150         (C) Orthopedic medicine.
  151         (D) Physical medicine.
  152         (E) Physical therapy.
  153         (F) Physical rehabilitation.
  154         (G) Prescribing or dispensing outpatient prescription
  155  medication.
  156         (H) Laboratory services.
  157         3. Reimbursement for services and care provided in
  158  subparagraph 1. or subparagraph 2. up to $10,000 if a physician
  159  licensed under chapter 458 or chapter 459, a dentist licensed
  160  under chapter 466, a physician assistant licensed under chapter
  161  458 or chapter 459, or an advanced practice registered nurse
  162  licensed under chapter 464 has determined that the injured
  163  person had an emergency medical condition.
  164         4. Reimbursement for services and care provided in
  165  subparagraph 1. or subparagraph 2. is limited to $2,500 if a
  166  provider listed in subparagraph 1. or subparagraph 2. determines
  167  that the injured person did not have an emergency medical
  168  condition.
  169         5. Medical benefits do not include massage as defined in s.
  170  480.033 or acupuncture as defined in s. 457.102, regardless of
  171  the person, entity, or licensee providing massage or
  172  acupuncture, and a licensed massage therapist or licensed
  173  acupuncturist may not be reimbursed for medical benefits under
  174  this section.
  175         6. The Financial Services Commission shall adopt by rule
  176  the form that must be used by an insurer and a health care
  177  provider specified in sub-subparagraph 2.b., sub-subparagraph
  178  2.c., or sub-subparagraph 2.e. to document that the health care
  179  provider meets the criteria of this paragraph. Such rule must
  180  include a requirement for a sworn statement or affidavit.
  181         (b) Disability benefits.—Sixty percent of any loss of gross
  182  income and loss of earning capacity per individual from
  183  inability to work proximately caused by the injury sustained by
  184  the injured person, plus all expenses reasonably incurred in
  185  obtaining from others ordinary and necessary services in lieu of
  186  those that, but for the injury, the injured person would have
  187  performed without income for the benefit of his or her
  188  household. All disability benefits payable under this provision
  189  must be paid at least every 2 weeks.
  190         (c) Death benefits.—Death benefits of $5,000 per
  191  individual. Death benefits are in addition to the medical and
  192  disability benefits provided under the insurance policy. The
  193  insurer may pay death benefits to the executor or administrator
  194  of the deceased, to any of the deceased’s relatives by blood,
  195  legal adoption, or marriage, or to any person appearing to the
  196  insurer to be equitably entitled to such benefits.
  197  
  198  Only insurers writing motor vehicle liability insurance in this
  199  state may provide the required benefits of this section, and
  200  such insurer may not require the purchase of any other motor
  201  vehicle coverage other than the purchase of property damage
  202  liability coverage as required by s. 627.7275 as a condition for
  203  providing such benefits. Insurers may not require that property
  204  damage liability insurance in an amount greater than $10,000 be
  205  purchased in conjunction with personal injury protection. Such
  206  insurers shall make benefits and required property damage
  207  liability insurance coverage available through normal marketing
  208  channels. An insurer writing motor vehicle liability insurance
  209  in this state who fails to comply with such availability
  210  requirement as a general business practice violates part IX of
  211  chapter 626, and such violation constitutes an unfair method of
  212  competition or an unfair or deceptive act or practice involving
  213  the business of insurance. An insurer committing such violation
  214  is subject to the penalties provided under that part, as well as
  215  those provided elsewhere in the insurance code.
  216         Section 4. Paragraph (a) of subsection (5) of section
  217  627.7407, Florida Statutes, is amended to read:
  218         627.7407 Application of the Florida Motor Vehicle No-Fault
  219  Law.—
  220         (5) No later than November 15, 2007, each motor vehicle
  221  insurer shall provide notice of the provisions of this section
  222  to each motor vehicle insured who is subject to subsection (1).
  223  The notice is not subject to approval by the Office of Insurance
  224  Regulation. The notice must clearly inform the policyholder:
  225         (a) That beginning on January 1, 2008, Florida law requires
  226  the policyholder to maintain personal injury protection (“PIP”)
  227  insurance coverage and that this insurance pays covered medical
  228  expenses for injuries sustained in a motor vehicle crash by the
  229  policyholder, passengers, and relatives residing in the
  230  policyholder’s household unless excluded under s. 627.747.
  231         Section 5. This act shall take effect July 1, 2021.