Bill Text: FL S1298 | 2015 | Regular Session | Engrossed
Bill Title: Minimum Insurance Requirements
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2015-04-28 - Died on Calendar [S1298 Detail]
Download: Florida-2015-S1298-Engrossed.html
CS for SB 1298 Second Engrossed (ntc)
20151298e2
1 A bill to be entitled
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3 Be It Enacted by the Legislature of the State of Florida:Section 1. Subsection (1) of section 316.646, Florida Statutes, is amended to read:316.646 Security required; proof of security and display thereof.—(1) Any person required by s. 324.022 to maintain property damage liability security, required by s. 324.023 to maintain liability security for bodily injury or death, or required by s. 627.733 to maintain personal injury protection security on a motor vehicle, or required by s. 627.748(2)(d) to maintain insurance shall have in his or her immediate possession at all times while operating such motor vehicle proper proof of maintenance of the required security.(a) Such proof shall be in a uniform paper or electronic format, as prescribed by the department, a valid insurance policy, an insurance policy binder, a certificate of insurance, or such other proof as may be prescribed by the department.(b)1. The act of presenting to a law enforcement officer an electronic device displaying proof of insurance in an electronic format does not constitute consent for the officer to access any information on the device other than the displayed proof of insurance.2. The person who presents the device to the officer assumes the liability for any resulting damage to the device.Section 2. Section 627.716, Florida Statutes, is created to read:627.716 Short-term rental network company insurance.—(1) For purposes of this section, the term:(a) “Application” means an Internet-enabled application or platform or any similar method that is used to provide rental services to a participating renter and that is owned or used by a short-term rental network company.(b) “Participating lessor” means a person who makes a short-term rental property available through an application to participating renters.(c) “Participating renter” means a person who enters into a short-term rental arrangement through an application.(d) “Short-term rental network company” or “company” means an individual or organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietorship, or other entity for which participating lessors provide prearranged, short-term rentals for compensation using an application to connect a participating renter with a participating lessor. The term does not include a licensee under part VIII of chapter 468, chapter 475, or part I of chapter 509, an association as defined in s. 718.103 or s. 719.103, a homeowners’ association as defined in s. 720.301, a developer or managing entity as defined in s. 721.05, or other entity that owns, manages, or otherwise controls the short-term rental property of the participating lessor.(e) “Short-term rental network company insurance” means an insurance policy that provides coverage as required by this section at all times during the short-term rental period.(f) “Short-term rental period” means a period of less than 30 days or one calendar month, whichever is less, beginning at the time the participating renter first uses or occupies the short-term rental property and ending at the time the participating renter vacates the short-term rental property.(g) “Short-term rental property” means the entirety or any portion of a property which is used for residential occupancy purposes. The term includes, but is not limited to, a condominium, an apartment, a multifamily dwelling, a single-family structure, or any other rental unit located in this state which is owned or rented by a participating lessor. The term does not include a public lodging establishment licensed under part I of chapter 509 or a timeshare property as defined in s. 721.05.(2) During the short-term rental period, a short-term rental network company shall maintain short-term rental network company insurance as excess coverage, except that such coverage shall be primary to the extent that the participating lessor’s insurance does not provide coverage. The short-term rental network company insurance must:(a) Insure the participating lessor against direct physical loss to the short-term rental property and its contents, exclusive of the property of the participating renter, with limits of at least $1 million per occurrence with a policy period aggregate limit of $2 million for each short-term rental property.(b) Provide liability coverage for personal injury and property damage with limits of at least $1 million which covers the acts and omissions of the short-term rental network company, a participating lessor, and all other persons using or occupying the short-term rental property, except for a participating renter, against claims arising out of the use or occupancy of the short-term rental property by a participating renter and which does not contain an exclusion for co-insureds.(3) A short-term rental network company shall disclose in writing to a participating lessor the insurance coverages and limits of liability that the short-term rental network company provides during the short-term rental period. The company shall advise the participating lessor in writing that the participating lessor’s personal insurance policy may not provide the insurance coverage required by subsection (2).(4) An insurer that provides short-term rental network company insurance shall defend and indemnify in this state the insured in accordance with the policy’s provisions.(5)(a) During the short-term rental period, the participating lessor’s personal insurance policy for the short-term rental property may not:1. Be required to provide primary or excess coverage.2. Provide any coverage to the participating lessor, the participating renter, or a third party unless the policy, with or without a separate charge, provides for such coverage or contains an amendment or endorsement to provide such coverage.3. Have any duty to indemnify or defend for liabilities arising during the short-term rental period unless the policy, with or without a separate charge, provides for such duties or contains an amendment or endorsement to provide for such duties.(b) Before or after the short-term rental period, the participating lessor’s personal policy for the short-term rental property may not provide coverage for claims arising from any rental arrangement entered into by a participating renter with the short-term rental company or the participating lessor for the short-term rental property or for acts and omissions related to the rental arrangement unless the policy, with or without a separate charge, provides for such coverage or contains an amendment or endorsement to provide such coverage.(6) In a claims investigation, a short-term rental network company or its insurer shall cooperate with other insurers to facilitate the exchange of information, which must include the number and duration of all short-term rental periods made with respect to the short-term rental property for the 12 months preceding the date of loss.(7) This section does not limit the liability of a short-term rental network company arising out of the use or occupancy of short-term rental property by a participating renter for an amount that exceeds the limits specified in subsection (2).Section 3. Section 627.748, Florida Statutes, is created to read:627.748 Transportation network company insurance.—(1) For purposes of this section, the term:(a) “Digital network” means an online-enabled application, software, website, or system offered or used by a transportation network company which enables the prearrangement of rides with transportation network company drivers.(b) “Personal vehicle” means a vehicle, however titled, which is used by a transportation network company driver in connection with providing transportation network company service and that:1. Is owned, leased, or otherwise authorized for use by the transportation network company driver; and2. Is not a taxi, jitney, limousine, or for-hire vehicle as defined in s. 320.01(15).(c) “Prearranged ride” means the provision of transportation by a driver to or on behalf of a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports the rider, and ending when the last rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a taxi, jitney, limousine, for-hire vehicle as defined in s. 320.01(15), or street hail services.(d) “Transportation network company” or “company” means a corporation, partnership, sole proprietorship, or other entity operating in this state which uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides. A transportation network company may not be deemed to control, direct, or manage the personal vehicles or transportation network company drivers that connect to its digital network, unless agreed to in a written contract. A transportation network company does not include an individual, corporation, partnership, sole proprietorship, or other entity arranging nonemergency medical transportation for individuals qualifying for Medicaid or Medicare pursuant to a contract with the state or a managed care organization.(e) “Transportation network company driver” or “driver” means an individual who:1. Receives connections to potential riders and related services from a transportation network company in exchange for any form of compensation, including payment of a fee to the transportation network company; and2. Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation, including payment of a fee.(f) “Transportation network company rider” or “rider” means an individual who directly or indirectly uses a transportation network company’s digital network to connect with a transportation network company driver who provides transportation services to such individual in the driver’s personal vehicle.(2)(a) A transportation network company driver, or a transportation network company on the driver’s behalf, shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver or that the driver otherwise uses a personal vehicle to transport riders for compensation. Such primary automobile insurance must cover the driver as required under this section, including while the driver is logged on to the transportation network company’s digital network and engaged in a prearranged ride.(b) The following automobile insurance requirements apply while a participating transportation network company driver is logged on to the transportation network company’s digital network and is available to receive transportation requests, but is not engaged in a prearranged ride:1. Primary automobile liability insurance of at least $125,000 for death and bodily injury per person, $250,000 for death and bodily injury per incident, and $25,000 for property damage; and2. Primary automobile insurance that provides the minimum coverage requirements under ss. 627.730-627.7405.(c) While a transportation network company driver is engaged in a prearranged ride, the automobile insurance requirements that apply are primary automobile liability insurance of at least $1 million for death and bodily injury and $50,000 for property damage.(d) The following automobile insurance requirements apply at all times other than the periods specified in paragraph (b) or paragraph (c) if a driver has an agreement with a transportation network company to provide any form of transportation services to riders:1. Primary automobile liability insurance of at least $100,000 for death and bodily injury per person, $200,000 for death and bodily injury per incident, and $25,000 for property damage; and2. Primary automobile insurance that provides the minimum coverage requirements under ss. 627.730-627.7405.(e) The coverage requirements of paragraph (d) shall be satisfied by automobile insurance maintained by the transportation network company driver. The coverage requirements of paragraphs (b) and (c) may be satisfied by any of the following:1. Automobile insurance maintained by the transportation network company driver;2. Automobile insurance maintained by the transportation network company; or3. Any combination of subparagraphs 1. and 2.(f) If automobile insurance maintained by a driver under paragraph (b), paragraph (c), or paragraph (d) has lapsed or does not provide the required coverage, automobile insurance maintained by a transportation network company must provide the coverage required by this section beginning with the first dollar of a claim and must require that the insurer have the duty to defend such claim in this state.(g) Coverage under an automobile insurance policy maintained by the transportation network company may not be dependent on a personal automobile liability insurance policy first denying a claim.(h) Automobile insurance required by this section must be provided by an insurer authorized to do business in this state which is a member of the Florida Insurance Guaranty Association.(i) Automobile insurance satisfying the requirements of this section shall be deemed to satisfy the financial responsibility requirements for a motor vehicle under chapter 324 and the security required under s. 627.733.(j) A transportation network company driver shall carry proof of insurance coverage satisfying paragraphs (b), (c), and (d) at all times during his or her use of a personal vehicle. In the event of an accident:1. The driver shall provide the insurance coverage information to the directly involved parties, automobile insurers, and investigating police officers. Proof of financial responsibility may be provided through a digital telephone application under s. 316.646 controlled by a transportation network company.2. The driver, upon request, shall disclose to the directly involved parties, automobile insurers, and investigating police officers whether the driver, at the time of the accident, was logged on to the transportation network company’s digital network or engaged in prearranged ride.(k) Before a driver may accept a request for a prearranged ride on the transportation network company’s digital network, the transportation network company shall disclose in writing to each transportation network company driver each type of:1. Insurance coverage and the limit for each coverage the transportation network company provides; and2. Automobile insurance coverage that the driver must maintain while the driver uses a personal vehicle in connection with the transportation network company.(l) An insurer that provides personal automobile insurance policies under part XI of chapter 627 may exclude from coverage under a policy issued to an owner or operator of a personal vehicle any loss or injury that occurs while a driver is logged on to a transportation network company’s digital network or while a driver is engaged in a prearranged ride. Such right to exclude coverage applies to any coverage under an automobile insurance policy, including, but not limited to:1. Liability coverage for bodily injury and property damage.2. Personal injury protection coverage under s. 627.736.3. Uninsured and underinsured motorist coverage.4. Medical payments coverage.5. Comprehensive physical damage coverage.6. Collision physical damage coverage.(m) The exclusions authorized under paragraph (l) apply notwithstanding any financial responsibility requirements under chapter 324. This section does not require that a personal automobile insurance policy provide coverage while the driver is logged on to the transportation network company’s digital network, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a personal vehicle to transport riders for compensation. However, an insurer may voluntarily elect to provide coverage for such driver’s personal vehicle by contract or endorsement.(n) An insurer that excludes coverage, as authorized under paragraph (l):1. Does not have a duty to defend or indemnify any claim excluded. This section does not invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in this state before July 1, 2015.2. Has a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of this section at the time of loss if the insurer defends or indemnifies a claim against a driver which is excluded under the terms of its policy.(o) In a claims investigation, a transportation network company and any insurer potentially providing coverage for such claim under this section shall cooperate to facilitate the exchange of relevant information with directly involved parties and insurers of the transportation network company driver, if applicable. Such information must provide:1. The precise times that a driver logged on and off the transportation network company’s digital network during the 12-hour period immediately preceding and immediately after the accident.2. A clear description of the coverage, any exclusions, and limits provided under any automobile insurance maintained under this section.(p) Before allowing an individual to act as a driver on its digital network, a transportation network company shall determine whether the driver’s personal vehicle is subject to a lien. If the personal vehicle is subject to a lien, the transportation network company shall verify that the insurance required by this section provides coverage to the lienholder while the driver is logged into the transportation network company’s digital network and while the driver is providing a prearranged ride.(3) The office may adopt rules to implement this section.Section 4. This act shall take effect January 1, 2016.
