Bill Text: FL S1806 | 2011 | Regular Session | Introduced
Bill Title: Motor Vehicle Insurance
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-27 - Withdrawn from Banking and Insurance; Judiciary; Transportation; Budget -SJ 540 [S1806 Detail]
Download: Florida-2011-S1806-Introduced.html
Florida Senate - 2011 SB 1806 By Senator Diaz de la Portilla 36-01861-11 20111806__ 1 A bill to be entitled 2 An act relating to motor vehicle insurance; amending 3 s. 324.021, F.S.; revising provisions relating to 4 proof of financial responsibility for rented or leased 5 motor vehicles; providing lessors and lessees of 6 rented and leased motor vehicles with certain 7 responsibilities relating to the provision and 8 obtaining of liability insurance; revising who is 9 deemed the owner of a motor vehicle for purposes of 10 determining financial responsibility; revising 11 applicability of certain provisions relating to 12 financial responsibility of an owner of commercial 13 motor vehicles; providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsections (7) and (9) of section 324.021, 18 Florida Statutes, are amended to read: 19 324.021 Definitions; minimum insurance required.—The 20 following words and phrases when used in this chapter shall, for 21 the purpose of this chapter, have the meanings respectively 22 ascribed to them in this section, except in those instances 23 where the context clearly indicates a different meaning: 24 (7) PROOF OF FINANCIAL RESPONSIBILITY.—That proof of 25 ability to respond in damages for liability on account of 26 crashes arising out of the use of a motor vehicle: 27 (a) In the amount of $10,000 because of bodily injury to, 28 or death of, one person in any one crash; 29 (b) Subject to such limits for one person, in the amount of 30 $20,000 because of bodily injury to, or death of, two or more 31 persons in any one crash; 32 (c) In the amount of $10,000 because of injury to, or 33 destruction of, property of others in any one crash;and34 (d) With respect to commercial motor vehicles and nonpublic 35 sector buses, in the amounts specified in ss. 627.7415 and 36 627.742, respectively; and 37 (e) With respect to rented or leased motor vehicles, in the 38 amounts specified in paragraph (9)(b). 39 (9) OWNER; OWNER/LESSOR.— 40 (a) Owner.—A person who holds the legal title of a motor 41 vehicle; or, in the event a motor vehicle is the subject of an 42 agreement for the conditional sale or lease thereof with the 43 right of purchase upon performance of the conditions stated in 44 the agreement and with an immediate right of possession vested 45 in the conditional vendee or lessee, or in the event a mortgagor 46 of a vehicle is entitled to possession, then such conditional 47 vendee or lessee or mortgagor shall be deemed the owner for the 48 purpose of this chapter. 49 (b) Owner/lessor.—Notwithstanding any other provision of 50 the Florida Statutes or existing case law: 51 1. The lessor, under an agreement to lease a motor vehicle 52 for 1 year or longer which requires the lessee to obtain 53 insurance acceptable to the lessor which contains limits not 54 less than $100,000/$300,000 bodily injury liability and $50,000 55 property damage liability or not less than $500,000 combined 56 property damage liability and bodily injury liability, shall not 57 be deemed the owner of said motor vehicle for the purpose of 58 determining financial responsibility for the operation of said 59 motor vehicle or for the acts of the operator in connection 60 therewith; further, this subparagraph shall be applicable so 61 long as the insurance meeting these requirements is in effect. 62 The insurance meeting such requirements may be obtained by the 63 lessor or lessee, provided, if such insurance is obtained by the 64 lessor, the combined coverage for bodily injury liability and 65 property damage liability shall contain limits of not less than 66 $1 million and may be provided by a lessor’s blanket policy. 67 2. The lessor, under an agreement to rent or lease a motor 68 vehicle for a period of less than 1 year, shall require the 69 lessee to obtain insurance to respond in damages for liability 70 arising out of the use of the motor vehicle due to the 71 negligence of the lessee, or any permissive user of the motor 72 vehicle, with limits of not less than $500,000 combined property 73 damage liability and bodily injury liability. The lessor may 74 provide coverage for bodily injury liability and property damage 75 liability to the lessee through a policy issued by an insurer 76 licensed to transact insurance in this state and purchased by 77 the lessee for a premium separately set forth in the lease or 78 rental agreement. The lessor has a continuing duty to ensure 79 that the lessee has obtained insurance consistent with this 80 subparagraphbe deemed the owner of the motor vehicle for the81purpose of determining liability for the operation of the82vehicle or the acts of the operator in connection therewith only83up to $100,000 per person and up to $300,000 per incident for84bodily injury and up to $50,000 for property damage. If, at the 85 time any liability arises out of the use of the motor vehicle, 86 the lessee or the operator of the motor vehicle is uninsured or 87 has any insurance with limits less than $500,000 combined 88 property damage liability and bodily injury liability, the 89 lessor shall be liable for up to $100,000 per person and up to 90 $300,000 per incident for bodily injury, up to $50,000 for 91 property damage, and up to an additional $500,000 in economic 92 damages only arising out of the use of the motor vehicle. The 93 additional specified liability of the lessor for economic 94 damages shall be reduced by amounts actually recovered from the 95 lessee, from the operator, and from any insurance or self 96 insurance covering the lessee or operator. If the lessee does 97 not obtain coverage consistent with this subparagraph, the 98 lessor shall be deemed liable for any amounts not recovered from 99 the lessee arising out of the use of the motor vehicle or the 100 acts of the operator in connection therewith. Nothing in this 101 subparagraph shall be construed to affect the liability of the 102 lessor for its own negligence. 103 3. The owner who is a natural person and loans a motor 104 vehicle to any permissive user shall be liable for the operation 105 of the vehicle or the acts of the operator in connection 106 therewith only up to $100,000 per person and up to $300,000 per 107 incident for bodily injury and up to $50,000 for property 108 damage. If the permissive user of the motor vehicle is uninsured 109 or has any insurance with limits less than $500,000 combined 110 property damage and bodily injury liability, the owner shall be 111 liable for up to an additional $500,000 in economic damages only 112 arising out of the use of the motor vehicle. The additional 113 specified liability of the owner for economic damages shall be 114 reduced by amounts actually recovered from the permissive user 115 and from any insurance or self-insurance covering the permissive 116 user. Nothing in this subparagraph shall be construed to affect 117 the liability of the owner for his or her own negligence. 118 (c) Application.— 119 1. The financial responsibility and insurance requirements 120 of subparagraphlimits on liability in subparagraphs(b)2. and 121 the limits on liability in subparagraph (b)3. do not apply to an 122 owner of motor vehicles that are used for commercial activity in 123 the owner’s ordinary course of business, other than a rental 124 company that rents or leases motor vehicles. For purposes of 125 this paragraph, the term “rental company” includes only an 126 entity that is engaged in the business of renting or leasing 127 motor vehicles to the general public and that rents or leases a 128 majority of its motor vehicles to persons with no direct or 129 indirect affiliation with the rental company. The term also 130 includes a motor vehicle dealer that provides temporary 131 replacement vehicles to its customers for up to 10 days. The 132 term “rental company” also includes: 133 a. A related rental or leasing company that is a subsidiary 134 of the same parent company as that of the renting or leasing 135 company that rented or leased the vehicle. 136 b. The holder of a motor vehicle title or an equity 137 interest in a motor vehicle title if the title or equity 138 interest is held pursuant to or to facilitate an asset-backed 139 securitization of a fleet of motor vehicles used solely in the 140 business of renting or leasing motor vehicles to the general 141 public and under the dominion and control of a rental company, 142 as described in this subparagraph, in the operation of such 143 rental company’s business. 144 2.Furthermore,With respect to commercial motor vehicles 145 as defined in s. 627.732, the financial responsibility and 146 insurance requirements of subparagraphlimits on liability in147subparagraphs(b)2. and the limits on liability in subparagraph 148 (b)3. do not apply if, at the time of the incident, the 149 commercial motor vehicle is being used in the transportation of 150 materials found to be hazardous for the purposes of the 151 Hazardous Materials Transportation Authorization Act of 1994, as 152 amended, 49 U.S.C. ss. 5101 et seq., andthatis required 153 pursuant to such act to carry placards warning others of the 154 hazardous cargo, unless at the time of lease or rental either: 155 a. The lessee indicates in writing that the vehicle will 156 not be used to transport materials found to be hazardous for the 157 purposes of the Hazardous Materials Transportation Authorization 158 Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or 159 b. The lessee or other operator of the commercial motor 160 vehicle has in effect insurance with limits of at least 161 $5,000,000 combined property damage and bodily injury liability. 162 Section 2. This act shall take effect July 1, 2011.