HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 719 Motor Vehicle Insurance
SPONSOR(S): Judiciary Committee, Civil Justice & Property Rights Subcommittee, Grall
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 18 Y, 0 N, As CS Mawn Jones
2) Judiciary Committee 18 Y, 2 N, As CS Mawn Kramer
SUMMARY ANALYSIS
The Florida Motor Vehicle No-Fault Law requires certain vehicle owners to obtain personal injury protection
insurance coverage (“PIP”), which provides $10,000 in medical, disability, and funeral expenses, without
regard to fault, subject to a limit of $2,500 for non-emergency medical care. In exchange for providing PIP
coverage, vehicle owners and operators are immune from tort claims within PIP coverage limits.
A vehicle owner must also obtain at least $10,000 in property damage coverage (“PD”), and, at the time of an
accident, show proof of bodily injury (“BI”) coverage of at least $10,000 due to the bodily injury or death of any
one person and $20,000 for the bodily injury or death of two or more persons. An insurance policy or allowable
form of self-insurance is acceptable proof of BI coverage.
CS/CS/HB 719 repeals PIP. By repealing PIP, the bill removes PIP’s tort liability limitation, making drivers at
fault in an accident fully liable for any damages they cause. Due to this change, the bill also expands the scope
of legal liabilities covered under an uninsured/underinsured motorist policy.
In place of PIP, the bill requires BI coverage at the time of vehicle registration with a minimum coverage limit of
$25,000 due to the bodily injury or death of any one person and $50,000 for the bodily injury or death of two or
more persons. The minimum PD coverage limit remains unchanged at $10,000. However, the minimum
security limits for self-insurance of BI and PD requirements are increased, as are the minimum coverage limits
applicable to garage liability policies and commercial motor vehicle coverage.
Motor vehicle policies issued on or after January 1, 2022, may not include PIP coverage. However,
suspensions, revocations, and anti-fraud measures for actions occurring under the PIP law continue. The bill
provides for the transition of motor vehicle insurance policies issued before January 1, 2022, from PIP to BI/PD
and requires insurers to give their policyholders a notice describing the effect of the bill’s changes by
September 1, 2021. The notice is subject to approval by the Office of Insurance Regulation (“OIR”).
The bill provides that resident relatives must be included in coverage provided by a motor vehicle liability
policy. It also allows insurers to exclude named individuals and motor vehicles that are not identified in the
policy from coverage under specified circumstances.
Further, the bill requires insurers to offer medical payments coverage at specified limits with specified
deductibles and provides that a policyholder is deemed to have $10,000 in such coverage unless the
policyholder opts out in writing; modifies bad faith failure to settle requirements; authorizes a claimant to file an
enforcement action if an insurer fails to comply with specified disclosure requirements; and allows for a
$10,000 setoff on noneconomic damages for a defendant under specified circumstances.
An appropriation of $83,651 is provided to OIR to implement changes made by the bill. The bill will have an
indeterminate fiscal impact on state and local governments. The bill will have an indeterminate fiscal impact on
the private sector.
The bill provides an effective date of January 1, 2022, except as otherwise expressly provided.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Financial Responsibility Law
Florida’s Financial Responsibility Law requires proof of ability to pay monetary damages for bodily
injury (“BI”) and property damage (“PD”) liability arising out of a motor vehicle accident or serious traffic
violation.1 The owner or operator of a motor vehicle, including a motorcycle, is not required to show
proof of BI coverage at the time of vehicle registration. Instead, proof of such coverage is only required
after an accident.2 At that time, a driver proves financial responsibility by furnishing an active motor
vehicle liability policy, a certificate showing a qualifying security deposit with the Department of
Highway Safety and Motor Vehicles (“DHSMV”), or proof of qualifying self-insurance.3
A motor vehicle owner or operator must hold minimum:
 BI coverage of at least $10,000 in the event of the bodily injury to or death of one person and
$20,000 in the event of the bodily injury to or death of two or more persons; and
 PD coverage of at least $10,000, in the event of damage to property of others; or
 $30,000 in combined BI and PD coverage.4
These coverage amounts are often referred to in a summary manner as $10,000/$20,000/$10,000 or
10/20/10.
A driver’s license and vehicle registration are subject to suspension for failure to comply with the PD
coverage requirement.5 A driver’s license and registration suspended for such reasons may be
reinstated by obtaining a liability policy and paying a fee to the DHSMV.6
All states have financial responsibility laws requiring persons involved in motor vehicle accidents (or
serious traffic infractions) to furnish proof of BI and PD liability insurance. However, minimum coverage
amounts vary among the states.
Florida Motor Vehicle No-Fault Law
Florida’s Motor Vehicle No-Fault Law (“No-Fault Law”)7 requires motorists to carry no-fault insurance
known as personal injury protection (“PIP”) coverage. PIP provides immediate medical, surgical,
funeral, and disability insurance benefits up to the coverage limits after a motor vehicle accident,
regardless of who is at fault. In return for providing such benefits, the No-Fault Law limits the right to
sue in connection to a motor vehicle accident for damages less than available PIP benefits. Most
Florida motorists must carry $10,000 of PIP coverage.8
1 Ch. 324, F.S.
2 Ss. 320.02 and 324.011, F.S.
3 Ss. 324.031, 324.061, 324.161, and 324.171, F.S. Businesses that choose to self-insure the financial responsibility requirements must
deposit $30,000 per vehicle, up to a maximum of $120,000, with the DHSMV and maintain excess insurance with limits of
$125,000/$250,000/$300,000. Individuals that choose to self-insure must deposit $30,000 with the DHSMV. Individuals and businesses
can also obtain a certificate of self-insurance to satisfy the financial responsibility requirements. Individuals must have an
unencumbered net worth of $40,000 and businesses must have either an unencumbered net worth of $40,000 for the first vehicle and
$20,000 for each additional vehicle or a sufficient net worth as determined by DHSMV rule. Currently, the applicable rule provides that
$40,000 for the first vehicle and an amount less than $20,000 for each additional vehicle is sufficient if the applicant carries excess
insurance in the amounts of $25,000/$50,000/$100,000. The amount applicable to each additional vehicle is determined annually under
a “Manual of Financial Responsibility Rates” (Revised 05-89) adopted by rule by the Office of Insurance Regulation. Rule 15A-3.011,
F.A.C.
4 S. 324.022, F.S.
5 S. 324.0221(2), F.S. Failure to maintain PIP coverage results in suspension of the driver’s license and vehicle registration.
6 S. 324.0221(3), F.S.
7 Ss. 627.730-627.7405, F.S.
8 S. 627.7275, F.S.
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 PIP General Provisions
Required Coverage All owners or registrants of motor vehicles with four or more wheels,
except school buses, limos, and taxicabs, are required to carry PIP.9
Individuals Covered The named insured, relatives living in the same household, persons
operating the vehicle, passengers in the vehicle, and persons struck
and injured outside the vehicle.
Tort Limitation Limited exemption from tort liability; injured persons may pursue
certain tort claims as specified by the PIP law.
Benefits $10,000 in emergency medical and disability benefits (limited to
$2,500 in medical benefits for non-emergency medical conditions) and
$5,000 in death benefits. Coverage of 60 percent of lost income due
to disability, not to exceed the $10,000 overall benefit limit.
Timely Treatment Medical benefits are paid only if initial treatment is received within 14
days of the accident.
Timely Payment Payments are overdue if not paid within 30 days of insurer receipt of
written notice.
Medical Reimbursement 80 percent of reasonable medical expenses paid to eligible medical
providers.10
Excluded Treatment Massage and acupuncture are not covered. Services, supplies, or
care that are not reimbursable under Medicare or workers’
compensation are also not covered.
Attorney Fees Prevailing insureds and beneficiaries may receive a reasonable
attorney fee award.
PIP in Other States
Over the last 20 years or so, 25 jurisdictions have repealed their No-Fault laws or made them non-
compulsory.11 Only 16 jurisdictions have compulsory PIP laws, only nine have No-Fault laws, and only
five, including some that do not have compulsory PIP laws, give the insured the option to choose No-
Fault protections:
Jurisdiction Compulsory PIP No-Fault
Delaware Yes No
District of Columbia No Optional
Florida Yes Yes
Hawaii Yes Yes
Kansas Yes Yes
Kentucky No Optional
Maryland Yes No
Massachusetts Yes Yes
Michigan Yes Yes
Minnesota Yes Yes
New Jersey Yes Optional
New York Yes Yes
North Dakota Yes Yes
9 This includes non-resident owners who keep a vehicle in Florida for more than 90 days during the previous 365 days. S. 627.733(2),
F.S.
10 Insurers may limit reimbursements to a fee schedule tied to the Medicare allowed amount. S. 627.736(5)(a)1., F.S. For many
services, 80 percent of 200 percent of the Medicare allowed amount is the standard reimbursement.
11 National Association of Insurance Commissioners, Final Auto Study Group Report (Nov. 18, 2014) and Insurance Information
Institute, Compulsory Auto/Uninsured Motorists (Sept. 2017), http://www.iii.org/issue-update/compulsory-auto-uninsured-motorists (last
visited April 13, 2021).
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 Oregon Yes No
Pennsylvania No Optional
Texas Yes Optional
Utah Yes Yes
Virgin Islands Yes No
Washington Yes No
Recent Legislative History
The Legislature revised the PIP law multiple times after a statewide grand jury found rampant PIP
fraud, including in 2001 and 2003. The 2003 legislation provided for PIP repeal through a sunset
provision effective October 1, 2007, and a bill extending PIP’s sunset was vetoed, resulting in the law
expiring in 2007. However, after a 2007 Special Session, the PIP law was revived effective January 1,
2008, and the Legislature again revised the PIP law in 2012.
PIP Reform
The reforms enacted between 2001 and 2012 included:
 Establishing requirements for and limiting access to motor vehicle crash reports;
 Limiting medical services, reimbursement, and eligible providers;
 Requiring provider licensing;
 Requiring pre-suit demand letters;
 Increasing criminal penalties;
 Defining certain activities by claims handlers as unfair and deceptive trade practices;
 Limiting benefits for emergency and non-emergency medical conditions; and
 Limiting attorney fees.
The 2012 reform required insurers to make rate filings by October 1, 2012, and January 1, 2014, that
provided a minimum of 10 percent and 25 percent decreases in PIP premiums, respectively. However,
this reform allowed insurers to file and the Office of Insurance Regulation (OIR) to approve smaller
decreases or increases, if appropriately justified. This resulted in an estimated average statewide rate
decrease in PIP premiums of 13.2 percent, as of January 22, 2014.
PIP Repeal Proposals
The PIP law has been the subject of multiple repeal proposals over the last several years. The Florida
House of Representatives (“House”) considered bills in 2013, 2014, 2015, and 2017 that would have
repealed PIP and required increased BI coverage under the Financial Responsibility Law.12 A 2016 bill
would have repealed PIP, effective January 1, 2019, but would have maintained current BI and PD
requirements. Except for 2017, the House bills died in the Insurance & Banking Subcommittee. CS/HB
1063 (2017) passed the House on April 19, 2017, and died in the Senate Appropriations Subcommittee
on Health and Human Services. In 2020, the House considered HB 771, which passed all committees
of reference but died on the House floor.
12 Ch. 324, F.S.
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 Recent Changes
As part of a pair of broader insurance-related bills, the Legislature amended the PIP law in 2015 and
2016. HB 165 (2015) clarified the application of the PIP medical reimbursement fee schedule. HB 165
(2015) and HB 659 (2016) each created an additional exemption from a licensure requirement under
the PIP law that allows reimbursement of certain health care clinics for PIP-related medical services.
Recent OIR Reports
PIP Data Call
HB 119 (2012) required OIR to perform a comprehensive PIP data call and to report the results. 35
insurers representing 83.5 percent of the market participated in the data call, including the top 25
insurers by market share; however, the report did not rely on information from several insurers due to
data quality issues. OIR published its data call analysis on January 1, 2015, addressing:
1. Quantity of personal injury protection claims.
2. Type or nature of claimants.
3. Amount and type of personal injury protection benefits paid and expenses incurred.
4. Type and quantity of, and charges for, medical benefits.
5. Direct earned premiums for personal injury protection coverage, pure loss ratios, pure premiums,
and other information related to premiums and losses.
6. Licensed drivers and accidents.
7. Fraud and enforcement.
While OIR did not provide a summary of their findings in the body of the report, it summarized its
findings in a press release dated January 5, 2015:13
The findings showed a general decrease in the per-claim costs and the overall
number of claims (frequency and severity) for PIP since the implementation of
HB 119 on January 1, 2013. The regional analysis concludes th