HB 1439

1	A bill to be entitled
2	An act relating to motor vehicle insurance; amending s.
3	324.021, F.S.; revising provisions relating to proof of
4	financial responsibility for rented or leased motor
5	vehicles; providing lessors and lessees of rented and
6	leased motor vehicles with certain responsibilities
7	relating to the provision and obtaining of liability
8	insurance; revising who is deemed the owner of a motor
9	vehicle for purposes of determining financial
10	responsibility; revising applicability of certain
11	provisions relating to financial responsibility of an
12	owner of commercial motor vehicles; providing an effective
13	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
30	of $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; and
34	(d)  With respect to commercial motor vehicles and
35	nonpublic sector buses, in the amounts specified in ss. 627.7415
36	and 627.742, respectively; and
37	(e)  With respect to rented or leased motor vehicles, in
38	the 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	subparagraph be deemed the owner of the motor vehicle for the
81	purpose of determining liability for the operation of the
82	vehicle or the acts of the operator in connection therewith only
83	up to $100,000 per person and up to $300,000 per incident for
84	bodily 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 subparagraph limits 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
134	subsidiary of the same parent company as that of the renting or
135	leasing 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 subparagraph limits on liability in
147	subparagraphs (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., and that is 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.

CODING: Words stricken are deletions; words underlined are additions.