Florida Senate - 2023 SB 586



By Senator Grall





29-00580-23 2023586__
1 A bill to be entitled
2 An act relating to motor vehicle insurance; repealing
3 ss. 627.730, 627.731, 627.7311, 627.732, 627.733,
4 627.734, 627.736, 627.737, 627.739, 627.7401,
5 627.7403, and 627.7405, F.S., which comprise the
6 Florida Motor Vehicle No-Fault Law; repealing s.
7 627.7407, F.S., relating to application of the Florida
8 Motor Vehicle No-Fault Law; amending s. 316.2122,
9 F.S.; conforming a provision to changes made by the
10 act; amending s. 316.646, F.S.; revising a requirement
11 for proof of security on a motor vehicle and the
12 applicability of the requirement; amending s. 318.18,
13 F.S.; conforming a provision to changes made by the
14 act; amending s. 320.02, F.S.; revising the motor
15 vehicle insurance coverages that an applicant must
16 show to register certain vehicles with the Department
17 of Highway Safety and Motor Vehicles; conforming a
18 provision to changes made by the act; revising
19 construction; amending s. 320.0609, F.S.; conforming a
20 provision to changes made by the act; amending s.
21 320.27, F.S.; defining the term “garage liability
22 insurance”; revising garage liability insurance
23 requirements for motor vehicle dealer license
24 applicants; conforming a provision to changes made by
25 the act; amending s. 320.771, F.S.; revising garage
26 liability insurance requirements for recreational
27 vehicle dealer license applicants; amending ss.
28 322.251 and 322.34, F.S.; conforming provisions to
29 changes made by the act; amending s. 324.011, F.S.;
30 revising legislative intent; amending s. 324.021,
31 F.S.; revising and providing definitions; revising
32 minimum coverage requirements for proof of financial
33 responsibility for specified motor vehicles;
34 conforming provisions to changes made by the act;
35 amending s. 324.022, F.S.; revising minimum liability
36 coverage requirements for motor vehicle owners or
37 operators; revising authorized methods for meeting
38 such requirements; deleting a provision relating to an
39 insurer’s duty to defend certain claims; revising the
40 vehicles that are excluded from the definition of the
41 term “motor vehicle”; providing security requirements
42 for certain excluded vehicles; conforming provisions
43 to changes made by the act; amending s. 324.0221,
44 F.S.; revising coverages that subject a policy to
45 certain insurer reporting and notice requirements;
46 conforming provisions to changes made by the act;
47 creating s. 324.0222, F.S.; providing that driver
48 license or motor vehicle registration suspensions for
49 failure to maintain required security which are in
50 effect before a specified date remain in full force
51 and effect; providing that such suspended licenses or
52 registrations may be reinstated as provided in a
53 specified section; amending s. 324.023, F.S.;
54 conforming cross-references; amending s. 324.031,
55 F.S.; specifying a method of proving financial
56 responsibility by owners or operators of motor
57 vehicles other than for-hire passenger transportation
58 vehicles; revising the amount of a certificate of
59 deposit required to elect a certain method of proof of
60 financial responsibility; revising liability coverage
61 requirements for a person electing to use such method;
62 amending s. 324.032, F.S.; revising financial
63 responsibility requirements for owners or lessees of
64 for-hire passenger transportation vehicles; amending
65 s. 324.051, F.S.; making technical changes; specifying
66 that motor vehicles include motorcycles for purposes
67 of the section; amending ss. 324.071 and 324.091,
68 F.S.; making technical changes; amending s. 324.151,
69 F.S.; revising requirements for motor vehicle
70 liability insurance policies relating to coverage, and
71 exclusion from coverage, for certain drivers and
72 vehicles; conforming provisions to changes made by the
73 act; making technical changes; defining terms;
74 amending s. 324.161, F.S.; revising requirements for a
75 certificate of deposit that is required if a person
76 elects a certain method of proving financial
77 responsibility; amending s. 324.171, F.S.; revising
78 the minimum net worth requirements to qualify certain
79 persons as self-insurers; conforming provisions to
80 changes made by the act; amending s. 324.251, F.S.;
81 revising a short title and an effective date; amending
82 s. 400.9905, F.S.; revising the definition of the term
83 “clinic”; amending ss. 400.991 and 400.9935, F.S.;
84 conforming provisions to changes made by the act;
85 amending s. 409.901, F.S.; revising the definition of
86 the term “third-party benefit”; amending s. 409.910,
87 F.S.; revising the definition of the term “medical
88 coverage”; amending s. 456.057, F.S.; conforming a
89 provision to changes made by the act; amending s.
90 456.072, F.S.; revising specified grounds for
91 discipline for certain health professions; defining
92 the term “upcode”; amending s. 624.155, F.S.;
93 providing an exception to the circumstances under
94 which a person who is damaged may bring a civil action
95 against an insurer; adding a cause of action against
96 insurers in certain circumstances; providing that a
97 person is not entitled to judgments under multiple bad
98 faith remedies; creating s. 624.156, F.S.; providing
99 that the section applies to bad faith failure to
100 settle third-party claim actions against any insurer
101 for a loss arising out of the ownership, maintenance,
102 or use of a motor vehicle under specified
103 circumstances; providing construction; providing that
104 insurers have a duty of good faith; providing
105 construction; defining the term “bad faith failure to
106 settle”; requiring insurers to meet best practices
107 standards; providing circumstances under which a
108 notice is not effective; providing that the burden is
109 on the party bringing the bad faith claim; specifying
110 best practices standards for insurers upon receiving
111 actual notice of certain incidents or losses;
112 specifying certain requirements for insurer
113 communications to an insured; requiring an insurer to
114 initiate settlement negotiations under certain
115 circumstances; specifying requirements for the insurer
116 when multiple claims arise out of a single occurrence
117 under certain conditions; providing construction;
118 requiring an insurer to attempt to settle a claim on
119 behalf of certain insureds under certain
120 circumstances; providing for a defense to bad faith
121 actions; providing that insureds have a duty to
122 cooperate; requiring an insured to take certain
123 reasonable actions necessary to settle covered claims;
124 providing requirements for disclosures by insureds;
125 requiring insurers to provide certain notice to
126 insureds within a specified timeframe; providing that
127 insurers may terminate certain defenses under certain
128 circumstances; providing that a trier of fact may not
129 attribute an insurer’s failure to settle certain
130 claims to specified causes under certain
131 circumstances; specifying conditions precedent for
132 claimants filing bad faith failure to settle third
133 party claim actions; providing that an insurer is
134 entitled to a reasonable opportunity to investigate
135 and evaluate claims under certain circumstances;
136 providing that insurers may not be held liable for the
137 failure to accept a settlement offer within a certain
138 timeframe if certain conditions are met; providing
139 that an insurer is not required to automatically
140 tender policy limits within a certain timeframe in
141 every case; requiring the party bringing a bad faith
142 failure to settle action to prove every element by the
143 greater weight of the evidence; specifying burdens of
144 proof for insurers relying on specified defenses;
145 limiting damages under certain circumstances;
146 providing construction; amending s. 626.9541, F.S.;
147 conforming a provision to changes made by the act;
148 revising certain prohibited acts related to specified
149 insurance coverage payment requirements; amending s.
150 626.989, F.S.; revising the definition of the term
151 “fraudulent insurance act”; amending s. 627.06501,
152 F.S.; revising coverages that may provide for a
153 reduction in motor vehicle insurance policy premium
154 charges under certain circumstances; amending s.
155 627.0651, F.S.; specifying requirements for rate
156 filings for motor vehicle liability policies that
157 implement requirements in effect on a specified date;
158 requiring such filings to be approved through a
159 certain process; amending s. 627.0652, F.S.; revising
160 coverages that must provide a premium charge reduction
161 under certain circumstances; amending s. 627.0653,
162 F.S.; revising coverages that are subject to premium
163 discounts for specified motor vehicle equipment;
164 amending s. 627.4132, F.S.; revising coverages that
165 are subject to a stacking prohibition; amending s.
166 627.4137, F.S.; requiring that insurers disclose
167 certain information at the request of a claimant’s
168 attorney; authorizing a claimant to file an action
169 under certain circumstances; providing for the award
170 of reasonable attorney fees and costs under certain
171 circumstances; amending s. 627.7263, F.S.; revising
172 coverages that are deemed primary, except under
173 certain circumstances, for the lessor of a motor
174 vehicle for lease or rent; revising a notice that is
175 required if the lessee’s coverage is to be primary;
176 creating s. 627.7265, F.S.; specifying persons whom
177 medical payments coverage must protect; specifying the
178 minimum medical expense limits; specifying coverage
179 options that an insurer is required and authorized to
180 offer; providing construction relating to limits on
181 certain other coverages; requiring insurers, upon
182 receiving certain notice of an accident, to hold a
183 specified reserve for certain purposes for a certain
184 timeframe; providing that the reserve requirement does
185 not require insurers to establish a claim reserve for
186 accounting purposes; prohibiting an insurer providing
187 medical payments coverage benefits from seeking a lien
188 on a certain recovery and bringing a certain cause of
189 action; authorizing insurers to include policy
190 provisions allowing for subrogation, under certain
191 circumstances, for medical payments benefits paid;
192 providing construction; specifying a requirement for
193 an insured for repayment of medical payments benefits
194 under certain circumstances; prohibiting insurers from
195 including policy provisions allowing for subrogation
196 for death benefits paid; amending s. 627.727, F.S.;
197 conforming provisions to changes made by the act;
198 revising the legal liability of an uninsured motorist
199 coverage insurer; amending s. 627.7275, F.S.; revising
200 required coverages for a motor vehicle insurance
201 policy; conforming provisions to changes made by the
202 act; creating s. 627.72761, F.S.; requiring motor
203 vehicle insurance policies to provide death benefits;
204 specifying requirements for such benefits; specifying
205 persons to whom such benefits may and may not be paid;
206 creating s. 627.7278, F.S.; defining the term “minimum
207 security requirements”; providing a prohibition,
208 requirements, applicability, and construction relating
209 to motor vehicle insurance policies as of a certain
210 date; requiring insurers to allow certain insureds to
211 make certain coverage changes, subject to certain
212 conditions; requiring an insurer to provide, by a
213 specified date, a specified notice to policyholders
214 relating to requirements under the act; amending s.
215 627.728, F.S.; conforming a provision to changes made
216 by the act; amending s. 627.7295, F.S.; revising the
217 definitions of the terms “policy” and “binder”;
218 revising the coverages of a motor vehicle insurance
219 policy for which a licensed general lines agent may
220 charge a specified fee; conforming provisions to
221 changes made by the act; amending s. 627.7415, F.S.;
222 revising additional liability insurance requirements
223 for commercial motor vehicles; amending s. 627.747,
224 F.S.; conforming provisions to changes made by the
225 act; amending s. 627.748, F.S.; revising insurance
226 requirements for transportation network company
227 drivers; conforming provisions to changes made by the
228 act; conforming cross-references; amending s.
229 627.7483, F.S.; conforming provisions to changes made
230 by the act; amending s. 627.749, F.S.; conforming a
231 provision to changes made by the act; amending s.
232 627.8405, F.S.; revising coverages in a policy sold in
233 combination with an accidental death and dismemberment
234 policy which a premium finance company may not
235 finance; revising rulemaking authority of the
236 Financial Services Commission; amending ss. 627.915,
237 628.909, 705.184, and 713.78, F.S.; conforming
238 provisions to changes made by the act; amending s.
239 817.234, F.S.; revising coverages that are the basis
240 of specified prohibited false and fraudulent insurance
241 claims; conforming provisions to changes made by the
242 act; deleting provisions relating to prohibited
243 changes in certain mental or physical reports;
244 providing an appropriation; providing effective dates.
245
246 Be It Enacted by the Legislature of the State of Florida:
247
248 Section 1. Sections 627.730, 627.731, 627.7311, 627.732,
249 627.733, 627.734, 627.736, 627.737, 627.739, 627.7401, 627.7403,
250 and 627.7405, Florida Statutes, are repealed.
251 Section 2. Section 627.7407, Florida Statutes, is repealed.
252 Section 3. Paragraph (e) of subsection (2) of section
253 316.2122, Florida Statutes, is amended to read:
254 316.2122 Operation of a low-speed vehicle, mini truck, or
255 low-speed autonomous delivery vehicle on certain roadways.—
256 (2) The operation of a low-speed autonomous delivery
257 vehicle on any road is authorized with the following
258 restrictions:
259 (e) A low-speed autonomous delivery vehicle must be covered
260 by a policy of automobile insurance which provides the coverage
261 required by s. 627.749(2)(a)1. and, 2., and 3. The coverage
262 requirements of this paragraph may be satisfied by automobile
263 insurance maintained by the owner of a low-speed autonomous
264 delivery vehicle, the owner of the teleoperation system, the
265 remote human operator, or a combination thereof.
266 Section 4. Subsection (1) of section 316.646, Florida
267 Statutes, is amended to read:
268 316.646 Security required; proof of security and display
269 thereof.—
270 (1) Any person required by s. 324.022 to maintain liability
271 security for property damage, liability security, required by s.
272 324.023 to maintain liability security for bodily injury, or
273 death, or required by s. 627.733 to maintain personal injury
274 protection security on a motor vehicle shall have in his or her
275 immediate possession at all times while operating a such motor
276 vehicle proper proof of maintenance of the required security
277 required under s. 324.021(7).
278 (a) Such proof must sha