Florida Senate Bill 420

Written by Shannon M. Anderson, Esq.

Florida Senate Bill 420 would allow private passenger motor vehicle policies to exclude certain identified individuals from specific coverages under certain circumstances. The name policyholder must consent to the excluded identified individual and list them on the policy declaration page or endorsement; otherwise, it is invalid. The following coverages these identified individuals could be excluded from are:

  • PIP coverage that would ordinarily be applicable to the identified individual
  • Property damage coverage
  • Bodily injury coverage
  • Uninsured motorist coverage for damages the identified individual sustained; and
  • Any other coverage a policyholder is not required to have.

The individual will not be excluded from coverage if injured while not operating the vehicle, it is unfairly discriminatory under the Florida Insurance Code, or it is inconsistent with the underwriting rules filed by insurer.

Under current law, an insurer is not allowed to exclude mandatory coverage of a named individual, up to the minimum coverage. The Office of Insurance Regulations requires an insurer to provide coverage to satisfy the minimum financial requirements, even if an exclusion of an identified individuals is listed.

The effect of this legislative change on consumer is the potential for lower premium prices and more choices. The policyholder could elect to exclude a driver in their household that would increase premium cost or potentially inhibit the policyholder from obtaining insurance from the preferred insurer. However, this could cause individuals who suffer from the injuries due to the excluded driver, not to recover for said injuries. It would also prevent the excluded driver from receiving PIP coverage for injuries incurred, unless the excluded driver has a separate policy. Additionally, it may prevent medical providers from obtaining reimbursement for services rendered to the excluded driver.

This bill is currently moving through the Florida Senate Chamber. It unanimously passed the Banking and Insurance Committee and will not be heard in the Judiciary.

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