ENROLLED
       2014 Legislature                                          SB 490
       
       
       
       
       
       
                                                              2014490er
    1  
    2         An act relating to motor vehicle liability policy
    3         requirements; amending s. 627.7275, F.S.; extending
    4         the period during which the policy may be cancelled by
    5         the insurer; specifying minimum limits for such
    6         policy; deleting a provision requiring an insured who
    7         obtains additional coverage to obtain a new 6-month
    8         noncancelable policy; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Subsection (2) of section 627.7275, Florida
   13  Statutes, is amended to read:
   14         627.7275 Motor vehicle liability.—
   15         (2)(a) Insurers writing motor vehicle insurance in this
   16  state shall make available, subject to the insurers’ usual
   17  underwriting restrictions:
   18         1. Coverage under policies as described in subsection (1)
   19  to an any applicant for private passenger motor vehicle
   20  insurance coverage who is seeking the coverage in order to
   21  reinstate the applicant’s driving privileges in this state if
   22  when the driving privileges were revoked or suspended pursuant
   23  to s. 316.646 or s. 324.0221 due to the failure of the applicant
   24  to maintain required security.
   25         2. Coverage under policies as described in subsection (1),
   26  which also provides liability coverage for bodily injury, death,
   27  and property damage arising out of the ownership, maintenance,
   28  or use of the motor vehicle in an amount not less than the
   29  limits described in s. 324.021(7) and conforms to the
   30  requirements of s. 324.151, to an any applicant for private
   31  passenger motor vehicle insurance coverage who is seeking the
   32  coverage in order to reinstate the applicant’s driving
   33  privileges in this state after such privileges were revoked or
   34  suspended under s. 316.193 or s. 322.26(2) for driving under the
   35  influence.
   36         (b) The policies described in paragraph (a) shall be issued
   37  for a period of at least 6 months and, as to the minimum
   38  coverages required under this section, may shall not be canceled
   39  cancelable by the insured for any reason or by the insurer after
   40  60 a period not to exceed 30 days, during which period the
   41  insurer is completing the must complete underwriting of the
   42  policy. After the insurer has completed underwriting the policy
   43  within the 30-day period, the insurer shall notify the
   44  Department of Highway Safety and Motor Vehicles that the policy
   45  is in full force and effect and is the policy shall not be
   46  cancelable for the remainder of the policy period. A premium
   47  shall be collected and the coverage is shall be in effect for
   48  the 60-day 30-day period during which the insurer is completing
   49  the underwriting of the policy whether or not the person’s
   50  driver license, motor vehicle tag, and motor vehicle
   51  registration are in effect. Once the noncancelable provisions of
   52  the policy become effective, the coverages for bodily injury,
   53  property damage, and personal injury protection may not be
   54  reduced below the minimum limits required under s. 324.021 or s.
   55  324.023 coverage or risk shall not be changed during the policy
   56  period and the premium shall be nonrefundable. If, during the
   57  pendency of the 2-year proof of insurance period required under
   58  s. 324.0221 or during the 3-year proof of financial
   59  responsibility required under s. 324.131, whichever is
   60  applicable, the insured obtains additional coverage or coverage
   61  for an additional risk or changes territories, the insured must
   62  obtain a new 6-month noncancelable policy in accordance with the
   63  provisions of this section. However, if the insured must obtain
   64  a new 6-month policy and obtains the policy from the same
   65  insurer, the policyholder shall receive credit on the new policy
   66  for any premium paid on the previously issued policy.
   67         (c) This subsection controls to the extent of any conflict
   68  with any other section.
   69         (d) An insurer issuing a policy subject to this section may
   70  cancel the policy if, during the policy term, the named insured,
   71  or any other operator, who resides in the same household or
   72  customarily operates an automobile insured under the policy, has
   73  his or her driver driver’s license suspended or revoked.
   74         (e) Nothing in This subsection does not require requires an
   75  insurer to offer a policy of insurance to an applicant if such
   76  offer would be inconsistent with the insurer’s underwriting
   77  guidelines and procedures.
   78         Section 2. This act shall take effect July 1, 2014.