SB 54 — Motor Vehicle Insurance

(c) In the amount of $10,000 because of injury to, or destruction of, property of others in any one crash;

(c) Notwithstanding paragraph (a), the following owners or operators may instead establish and continuously maintain the ability to respond in damages for liability on account of accidents arising out of the use of the motor vehicle in the amount of $15,000 for bodily injury to, or the death of, one person in any one crash and, subject to such limits for one person, in the amount of $30,000 for bodily injury to, or the death of, two or more persons in any one crash;

and $10,000 for damage to, or destruction of, property of others in any one crash:

1. An owner or operator who has a household income that is 200 percent or less of the most current federal poverty guidelines established by the United States Department of Health and Human Services;

or 2. An owner or operator who meets the definition of a full time student in a secondary education program under s.

1011.61(1)(a) or meets the definition of a full-time student in a postsecondary education program under s.

1009.40.

8. A motorcycle as defined in s.

320.01(26), unless s.

324.051 applies;

in such case, paragraph (1)(a) and the applicable proof of insurance provisions of s.

320.02 apply.

1. At least $125,000 for bodily injury to, or the death of, one person in any one crash and, subject to such limits for one person, in the amount of $250,000 for bodily injury to, or the death of, two or more persons in any one crash, and $50,000 for damage to, or destruction of, property of others in any one crash;

and $50,000 for damage to, or destruction of, property of others in any one crash;

10761027 Upon request by the department, the applicant shall must provide the department at the applicant’s principal place of business in this state access to the applicant’s underlying financial information and financial statements that provide the basis of the certified public accountant’s certification.

Section 19. Subsection19. Paragraph (b) of subsection (2) of section 324.051, Florida Statutes, is amended,amended and subsection (4) is added to that section, to read:

suspensions of licenses and registrations.— (2)(a) Thirty(2) days(b) This aftersubsection receiptdoes of notice of any accident described in paragraph (1)(a) involving a motor vehicle within this state, the department shall suspend, after due notice and opportunity to be heard, the license of each operator and all registrations of the owner of the vehicles operated by such operator whether or not involvedapply: in such crash and, in the case of a nonresident owner or operator, shall suspend such nonresident’s operating privilege in this state, unless such operator or owner shall, prior to the expiration of such 30 days, be found by the department to be exempt from the operation of this chapter, based upon evidence satisfactory to the department that:

1. The motor vehicle was legally parked at the time of such crash.

2. The motor vehicle was owned by the United States Government, this state, or any political subdivision of this state or any municipality therein.

3. Such operator or owner has secured a duly acknowledged written agreement providing for release from liability by all parties injured as the result of said crash and has complied with one of the provisions of s.

324.031.

4. Such operator or owner has deposited with the department security to conform with s.

324.061 when applicable and has complied with one of the provisions of s.

324.031.

5. One year has elapsed since such owner or operator was suspended pursuant to subsection (3), the owner or operator has complied with one of the provisions of s.

324.031, and no bill of complaint of which the department has notice has been filed in a court of competent jurisdiction.

(b) This subsection does shall not apply:

11451067 No such policy or bond shall be effective under this subsection unless it contains limits of not less than those specified in s.

(4) As used in this section, the term “motor vehicle” includes a motorcycle as defined in s.

320.01(26).

1. Wholly owned by a physician licensed under chapter 458 or chapter 459459, or by the physician and the spouse, parent, child, or sibling of the physician;

2. Wholly owned by a dentist licensed under chapter 466466, or by the dentist and the spouse, parent, child, or sibling of the dentist;

3. Wholly owned by a chiropractic physician licensed under chapter 460460, or by the chiropractic physician and the spouse, parent, child, or sibling of the chiropractic physician;

16091529 INSURANCE FRAUD NOTICE.—A person commits a fraudulent insurance act, as defined in s.

Section 33. Section33. Paragraph 559.920,(b) Floridaof Statutes,subsection is(1) reordered and subsection (8) of section 624.155, Florida Statutes, are amended to read:

559.920 Unlawful acts and practices.—It shall be a violation of this act for any motor vehicle repair shop or employee thereof to do any of the following:

(1) Engage or attempt to engage in repair work for compensation of any type without first being registered with or having submitted an affidavit of exemption to the department.;

(2) Make or charge for repairs which have not been expressly or impliedly authorized by the customer.;

(3) Misrepresent that repairs have been made to a motor vehicle.;

(4) Misrepresent that certain parts and repairs are necessary to repair a vehicle.;

(5) Misrepresent that the vehicle being inspected or diagnosed is in a dangerous condition or that the customer’s continued use of the vehicle may be harmful or cause great damage to the vehicle.;

(6) Fraudulently alter any customer contract, estimate, invoice, or other document.;

(7) Fraudulently misuse any customer’s credit card.;

(8) Make or authorize in any manner or by any means whatever any written or oral statement which is untrue, deceptive or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue, deceptive or misleading.;

(9) Make false promises of a character likely to influence, persuade, or induce a customer to authorize the repair, service, or maintenance of a motor vehicle.;

(10) Substitute used, rebuilt, salvaged, or straightened parts for new replacement parts without notice to the motor vehicle owner and to her or his insurer if the cost of repair is to be paid pursuant to an insurance policy and the identity of the insurer or its claims adjuster is disclosed to the motor vehicle repair shop.;

(11) Cause or allow a customer to sign any work order that does not state the repairs requested by the customer or the automobile’s odometer reading at the time of repair.;

(12) Fail or refuse to give to a customer a copy of any document requiring the customer’s signature upon completion or cancellation of the repair work.;

(13) Willfully depart from or disregard accepted practices and professional standards.;

(14) Have repair work subcontracted without the knowledge or consent of the customer unless the motor vehicle repair shop or employee thereof demonstrates that the customer could not reasonably have been notified.;

(15) Conduct the business of motor vehicle repair in a location other than that stated on the registration certificate.;

(16) Rebuild or restore a rebuilt vehicle without the knowledge of the owner in such a manner that it does not conform to the original vehicle manufacturer’s established repair procedures or specifications and allowable tolerances for the particular model and year.;

or (17) With respect to the replacement or repair of a motor vehicle windshield:

(a) Threaten, coerce, or intimidate an insured into selecting a particular motor vehicle glass repair facility or motor vehicle repair shop;

(b) Waive or offer to waive the insured’s deductible or offer a rebate, gift, gift card, cash, coupon, or anything of value to a third party in exchange for a referral of an insured to the motor vehicle glass repair facility or motor vehicle repair shop in connection with any claim under an insurance policy;

or (c) Waive or offer to waive the insured’s deductible or offer a rebate, gift, gift card, cash, coupon, or anything of value to an insured in exchange for the insured filing a motor vehicle windshield claim under an insurance policy.

(19)(17) Perform any other act that is a violation of this part or that constitutes fraud or misrepresentation.

(18) Violate any provision of s.

713.585.

Section 34. Paragraph (b) of subsection (1) and subsection (8) of section 624.155, Florida Statutes, are amended to read:

1. Except for a third-party bad faith failure to settle a claim subject to s.

18581708 Notwithstanding the provisions of the above to the contrary, a person pursuing a remedy under this section need not prove that such act was committed or performed with such frequency as to indicate a general business practice.

Section 35. Section34. Section 624.156, Florida Statutes, is created to read:

(2) DUTY OF GOOD FAITH.—In handling claims, an insurer hasstands as a fiduciary dutyfor to its insured and must handle claims in good faith.

(f) Release the insured from any further liability upon the insurer’s acceptance of a demand for settlement which is not withdrawn pursuant to paragraph (8)(e) or paragraph (8)(g)(8)(g), or accepted pursuant to paragraph (8)(f).

(c) Whether any other insurance exists thatwhich may cover some or all of the damages sustained by the claimant.

(b) Except(b) The as provided in paragraph (7)(b), the claimant may not examine the insured regarding liability.

(9) SAFE HARBOR.—WhenHARBOR.—In oneany claimthird-party arisesaction outfor ofbad afaith singlefailure occurrence,to settle, an insurer ismay not liablebe inheld aliable bad faith failure to settle action if theit insurer tenders its policy limits within 6030 days afterof receiving a demand for settlement under subsection (6).

(a) When competing claims arise out of a single occurrence and the sum of the competing claims exceeds the policy limits, an insurer is not liable in a bad faith failure to settle action if the insurer initiates an interpleader action at policy limits within 60 days after receiving notice of the competing claims.

If the court finds for one or more of the claimants, the court must award the claimants their respective pro rata share of the interpleaded funds.

(b) This subsection does not affect an insurer’s duties to its insured other than duties related to bad faith failure to settle.

No other damages, including,including but not limited to,to punitive damages, may be awarded in a thirdthird-party party bad faith failure to settle action.

(13) ENFORCEMENT.—If a judgment creditor has served a demand for settlement under subsection (6)(6), and the judgment exceeds the insured’s limits of liability, the judgment creditor must be subrogated to the rights of the insured against the insurer for common law bad faith.

Section 36. Paragraphs35. Paragraphs (i) and (o) of subsection (1) of section 626.9541, Florida Statutes, are amended to read:

Section 37. Paragraph36. Paragraph (a) of subsection (1) of section 626.989, Florida Statutes, is amended to read:

Section 38. Subsection37. Subsection (1) of section 627.06501, Florida Statutes, is amended to read:

Section 39. Subsection38. Subsection (15) is added to section 627.0651, Florida Statutes, to read:

Section 40. Subsection39. Subsection (1) of section 627.0652, Florida Statutes, is amended to read:

Section 41. Subsections40. Subsections (1), (3), and (6) of section 627.0653, Florida Statutes, are amended to read:

Section 42. Section41. Section 627.4132, Florida Statutes, is amended to read:

Section 43. Subsection42. Subsection (1) of section 627.4137, Florida Statutes, is amended to read:

24372275 In addition, the insured, or her or his insurance agent, upon written request of the claimant or the claimant’s attorney, shall disclose the name and coverage of each known insurer to the claimant and shall forward such request for information as required by this subsection to all affected insurers.

Section 44. Section43. Section 627.7263, Florida Statutes, is amended to read:

24672305 “The valid and collectible liability insurance and medical payments coverage personal injury protection insurance of an any authorized rental or leasing driver is primary for the limits of liability and personal injury protection coverage required under section 324.021(7), Florida Statutes, and the medical payments coverage limit specified under section 627.7265 by ss.

324.021(7) and 627.736, Florida Statutes.” Section 45. Section44. Section 627.7265, Florida Statutes, is created to read:

Section 46. Subsections45. Subsections (1) and (7) of section 627.727, Florida Statutes, are amended to read:

Section 47. Section46. Subsection (1) and paragraphs (a) and (b) of subsection (2) of section 627.7275, Florida Statutes, isare amended to read:

3. Coverage(b) The thatpolicies providesdescribed bodilyin injuryparagraph liability(a) coveragemust andshall propertybe damageissued liabilityfor coverageat inleast 6 months and, as to the amountsminimum specifiedcoverages inrequired s.under this section, may not be canceled by the insured for any reason or by the insurer after 60 days, during which period the insurer is completing the underwriting of the policy.

324.022(1)(c).

An insurer may deliver or issue for delivery only a policy providing such coverage to an applicant or insured who, before the issuance or renewal of the policy, represents to the insurer in writing or electronically that such person:

a. Has a household income that is 200 percent or less of the most current federal poverty guidelines established by the United States Department of Health and Human Services.

An insurer must, before accepting such representation, provide written or electronic notice to the applicant or insured regarding the dollar amounts that constitute a household income that is 200 percent of the most current federal poverty guidelines.

An insurer is not required to verify the veracity of the applicant’s or insured’s representation.

However, an insurer may not deny or exclude liability coverage under the policy solely because such representation of the applicant or insured was false.

b. Meets the definition of a full-time student in a secondary education program under s.

1011.61(1)(a), or meets the definition of a full-time student in a postsecondary education program under s.

1009.40.

An insurer must, before accepting such representation, provide written or electronic notice to the applicant or insured regarding the number of educational hours that meet the definition of a full-time student.

An insurer is not required to verify the veracity of the applicant’s or insured’s representation.

However, an insurer may not deny or exclude liability coverage under the policy solely because such representation of the applicant or insured was false.

(b) The policies described in subparagraphs (a)1.

and (a)2.

must paragraph (a) shall be issued for at least 6 months and, as to the minimum coverages required under this section, may not be canceled by the insured for any reason or by the insurer after 60 days, during which period the insurer is completing the underwriting of the policy.

(c) ThisSection subsection47. Effective controlsupon tothis theact extentbecoming ofa anylaw, conflictsection with627.7278, anyFlorida otherStatutes, section.is created to read:

(d) An insurer issuing a policy subject to this section may cancel the policy if, during the policy term, the named insured, or any other operator who resides in the same household or customarily operates an automobile insured under the policy, has his or her driver license suspended or revoked.

(e) This subsection does not require an insurer to offer a policy of insurance to an applicant if such offer would be inconsistent with the insurer’s underwriting guidelines and procedures.

Section 48. Effective upon this act becoming a law, section 627.7278, Florida Statutes, is created to read:

324.022(1),324.021(7). as amended by this act.

324.022 on December 31, 2021, but which does not meet minimum security requirements on or after January 1, 2022, is deemed to meet minimumthe security requirements untilof suchs. policy is renewed, nonrenewed, or canceled on or after January 1, 2022.

324.022 until such policy is renewed, nonrenewed, or canceled on or after January 1, 2022.

(c) Persons(c) Bodily subjectinjury liability coverage protects the insured, up to the financialcoverage responsibilitylimits, requirementsagainst loss if the insured is legally responsible for the death of s.or bodily injury to others in a motor vehicle accident.

324.022(d) Effective whoJanuary have1, a2022, householdeach incomepolicyholder of 200motor percentvehicle orliability lessinsurance ofpurchased theas federalproof povertyof guidelinesfinancial orresponsibility whomust arebe full-timeoffered secondarymedical orpayments postsecondarycoverage studentsbenefits may instead maintain minimum security requirements that enablecomply thewith persons. to respond to damages for liability on account of accidents arising out of the use of a motor vehicle in the following amounts:

1. Fifteen thousand dollars for bodily injury to, or the death of, one person in any one crash and, subject to such limits for one person, in the amount of $30,000 for bodily injury to, or the death of, two or more persons in any one crash;

and 2. Ten thousand dollars for damage to, or destruction of, the property of others in any one crash.

(d) Bodily injury liability coverage protects the insured, up to the coverage limits, against loss if the insured is legally responsible for the death of or bodily injury to others in a motor vehicle accident.

(e) Effective January 1, 2022, each policyholder of motor vehicle liability insurance purchased as proof of financial responsibility must be offered medical payments coverage benefits that comply with s.

The insurer may also offer medical payments coverage at other limits greater than $5,000$5,000, and may offer coverage with a deductible of up to $500.

(f) The(e) The policyholder may obtain uninsured and underinsured motorist coveragecoverage, thatwhich provides benefits, up to the limits of such coverage, to a policyholder or other insured entitled to recover damages for bodily injury, sickness, disease, or death resulting from a motor vehicle accident with an uninsured or underinsured owner or operator of a motor vehicle.

(g) If(f) If the policyholder’s new or renewal motor vehicle insurance policy is effective before January 1, 2022, and contains personal injury protection and property damage liability coverage as required by state law before January 1, 2022, but does not meet minimum security requirements on or after January 1, 2022, the policy is deemed to meet minimum security requirements until it is renewed, nonrenewed, or canceled on or after January 1, 2022.

(h) A(g) A policyholder whose new or renewal policy becomes effective before January 1, 2022, but does not meet minimum security requirements on or after January 1, 2022, may change coverages under the policy so as to eliminate personal injury protection and to obtain coverage providing minimum security requirements, including bodily injury liability coverage, which are effective on or after January 1, 2022.

(i) If(h) If the policyholder has any questions, he or she should contact the person named at the telephone number provided in the notice.

Section 49. Paragraph48. Paragraph (a) of subsection (1) of section 627.728, Florida Statutes, is amended to read:

28872673 The term “policy” does not include a binder as defined in s.

Section 50. Section49. Subsection 627.7288,(1), paragraph (a) of subsection (5), and subsections (6) and (7) of section 627.7295, Florida Statutes, isare amended to read:

627.7288 Comprehensive coverage;

deductibles for deductible not to apply to motor vehicle glass.— (1) Authorized insurers must offer motor vehicle insurance that does not apply any The deductible provisions of the any policy of motor vehicle insurance to, delivered or issued in this state by an authorized insurer, providing comprehensive coverage or combined additional coverage that is shall not be applicable to damage to the windshield of any motor vehicle covered under such policy.

(2) An insurer may also offer, for an actuarially reasonable premium credit or discount, a separate deductible no greater than $200 for damage to the windshield of any motor vehicle covered under a motor vehicle insurance policy delivered or issued by the insurer in this state.

Section 51. Subsection (1), paragraph (a) of subsection (5), and subsections (6) and (7) of section 627.7295, Florida Statutes, are amended to read:

Section 52. Section50. Section 627.7415, Florida Statutes, is amended to read:

29962766 A violation of this section is a noncriminal traffic infraction, punishable as a nonmoving violation as provided in chapter 318.

Section 53. Section51. Section 627.747, Florida Statutes, is created to read:

627.747 Named driver exclusion.— (1) A private passenger motor vehicle policy may exclude an identified individual from the following coverages while the identified individual is operating a motor vehicle, provided that the identified individual is specifically excluded by name on the declarations page or by endorsementendorsement, and the policyholder consents in writing to the exclusion:

Section 54. Paragraphs52. Paragraphs (b), (c), and (g) of subsection (7), paragraphs (a) and (b) of subsection (8), and paragraph (b) of subsection (16) of section 627.748, Florida Statutes, are amended to read:

Section 55. Paragraph53. Paragraph (a) of subsection (2) of section 627.749, Florida Statutes, is amended to read:

Section 56. Section54. Section 627.8405, Florida Statutes, is amended to read:

31892959 This section also applies to premium financing by any insurance agent or insurance company under part XVI.

Section 57. Subsection55. Subsection (1) of section 627.915, Florida Statutes, is amended to read:

Section 58. Subsections56. Subsections (2) and (3) of section 628.909, Florida Statutes, are amended to read:

Section 59. Subsections57. Subsections (2), (6), and (7) of section 705.184, Florida Statutes, are amended to read:

33243094 CLAIM OF LIEN State of ........

33463116 However, the negligent inclusion or omission of any information in this claim of lien which does not prejudice the owner does not constitute a default that operates to defeat an otherwise valid lien.

Section 60. Subsection58. Subsection (4) of section 713.78, Florida Statutes, is amended to read:

Section 61. Paragraph59. Paragraph (a) of subsection (1), paragraph (c) of subsection (7), paragraphs (a), (b), and (c) of subsection (8), and subsections (9) and (10) of section 817.234, Florida Statutes, are amended to read:

Section 62. For60. For the 2021-2022 fiscal year, the sum of $83,651 in nonrecurring funds is appropriated from the Insurance Regulatory Trust Fund to the Office of Insurance Regulation for the purpose of implementing this act.

Section 63. Except61. Except as otherwise expressly provided in this act and except for this section, which shall take effect upon this act becoming a law, this act shall take effect January 1, 2022.