No news on the big PIP bill yet, but SB 420 passed!  Here’s what you should know.

The new law provides:

An insurer may exclude an individual for all claims and/or lawsuits arising out of operation of a motor vehicle for the following coverages:

• No-Fault
• Bodily injury
• Property damage
• Uninsured motorist
• Any other coverage which is not required by law to be purchased

In order to exclude a person:

• The named insured must identify the individual on the declaratory page and/or an endorsement (the named insured cannot be excluded)
• The named insured must consent in writing to exclude the person
• An excluded driver must establish, maintain, and show proof of financial ability to respond for damages arising out of the ownership, maintenance or use of the motor vehicle as required by Chapter 324, Fla. Stat., and maintain security as required by §627.733, Fla. Stat.

An insurer can not exclude coverage:

• For the named insured
• For an identified individual who is injured while not operating a motor vehicle
• For any person excluded solely because of race, color, religion, sex, national origin, age, or handicap
• If the exclusion is not consistent with the insurer’s underwriting filed pursuant to §627.0651(13)(a), Fla. Stat. 

Section 627.736, Fla. Stat., (the PIP statute) was amended to allow this exclusion in PIP policies.

Potential issues to consider before denying coverage for an excluded individual:

• Verify the excluded person is listed on the declaratory page or on an endorsement
• Verify there is written consent from the named insured for the exclusion. This is likely going to be similar to a UM coverage rejection/selection form
• Verify proof of financial ability to respond to damages for the excluded person were in fact established and maintained

The new law takes effect July 1, 2021.

For more information and/or questions, please contact us at info@kubickidraper.com.