Efforts continue in the Florida legislature to repeal the state’s no-fault automobile insurance system, in effect since 1971, with a mandatory bodily injury liability regime. On April 14, 2021, the Florida Senate voted 38-1 to pass Senate Bill 54, which would replace the current Florida requirement of $10,000 in PIP benefits with mandatory bodily injury liability coverage. Significant aspects of SB 54 include:

• Requiring bodily injury liability limits of $25,000 per person and, subject to the per-person limit, $50,000 in bodily injury limits for two or more people in any one crash.
• Retaining the existing $10,000 financial responsibility requirement for property damage.
• Requiring $5,000 in medical payments (MedPay) coverage with provisions relating to offering higher limits and deductibles. Notably, SB 54 requires insurers to reserve the first $5,000 of MedPay benefits for 30 days to pay physicians and dentists who provide emergency or hospital inpatient care.
• Provisions relating to insurer claim handling and bad-faith insurance actions.

A companion bill – HB 719 – had been pending in the Florida House, but was substituted with SB 54, which the House passed on April 26 by a vote of 99-11. Of note, one House amendment would permit insureds to opt out of purchasing MedPay coverage. This and other amendments will head back to the Senate for approval.If the no-fault repeal legislation passes and is signed by the governor, the new bodily injury liability system could take effect in Florida on January 1, 2022.This matter is developing rapidly. CCC Casualty will continue to closely monitor legislative developments and work closely with our customers in the event of any changes to the handling of Florida claims. As the situation develops, we will update this post with the most up-to-date information.Links to proposed legislation:SB 54:CS/CS/SB 54, 1st Eng. (flsenate.gov)HB 719:PDF (flsenate.gov)This update provides a brief overview of certain aspects of bills currently pending in the Florida legislature regarding repeal of Florida’s no-fault automobile insurance system. This update does not discuss all aspects of the pending bills and is not intended as a comprehensive overview. The reader is directed to language of the bills themselves for more specific and/or additional information. This update does not constitute, and should not be construed as, legal advice.CCC Casualty solutions are provided by AIS, a CCC Company.