FL H1525

Repeals Florida's No-Fault Motor Vehicle Law (sections 627.730–627.7405, F.S.), eliminating mandatory Personal Injury Protection (PIP) coverage for all policies issued or renewed on or after July 1, 2023, and replaces it with mandatory bodily injury liability coverage under a restructured financial responsibility framework renamed the "Financial Responsibility Law of 2022."

Establishes new mandatory minimum insurance requirements of $25,000/$50,000 for bodily injury per person/per crash and $10,000 for property damage (or a $60,000 combined single limit) for all motor vehicle owners and operators, significantly increasing coverage from the prior system that required only $10,000 in property damage liability alongside PIP.

Creates mandatory death benefit coverage of $5,000 per deceased person and new medical payments coverage with a minimum $5,000 limit, which insurers must offer at $5,000 and $10,000 levels with no-deductible and optional deductible (up to $500) options; medical payments insurers are prohibited from placing liens on tort recoveries but retain limited subrogation rights against at-fault third parties.

Sets higher minimum coverage for specialized vehicles: for-hire passenger transportation vehicles must carry $125,000/$250,000/$50,000; commercial motor vehicles must carry $60,000–$300,000 depending on gross vehicle weight; and transportation network company (TNC) drivers must carry $1 million in primary liability while engaged in prearranged rides.

Increases self-insurance and certificate of deposit thresholds substantially — certificate of deposit amounts rise from $30,000 to $60,000 per vehicle (maximum $240,000), and minimum net worth for self-insurers increases from $40,000 to $100,000 for individuals, with scaled increases for entities with multiple vehicles.

Creates a $10,000 noneconomic damages setoff (s. 768.852) against uninsured motorists who lacked required coverage for more than 30 days before a crash, with exceptions for defendants who were intoxicated, acted intentionally or with gross negligence, fled the scene, or were committing a felony; the setoff does not apply to wrongful death claims.

Mandates a detailed transition process requiring insurers to notify policyholders of all changes by April 1, 2023; grandfathers pre-July 1, 2023 policies with PIP as compliant until renewal, nonrenewal, or cancellation; and requires insurers to allow mid-term coverage changes to eliminate PIP and add new mandatory coverages with appropriate premium refunds.

Updates insurance fraud statutes to replace all PIP references with medical payments coverage, maintaining existing penalties including second-degree felony charges with 2-year minimum imprisonment for staged accident schemes and unlawful solicitation of accident victims, and a 5-year license revocation plus 10-year reimbursement ban for health care practitioners convicted of motor vehicle insurance fraud.

Revises uninsured motorist coverage to explicitly include damages for pain, suffering, mental anguish, disfigurement, and loss of enjoyment of life — eliminating the prior No-Fault tort threshold requirement — and updates numerous cross-references across Florida statutes governing vehicle registration, dealer insurance, rental/leasing companies, autonomous vehicles, peer-to-peer car sharing, Medicaid, and health care clinic licensing.

Appropriates $83,651 in nonrecurring funds from the Insurance Regulatory Trust Fund to the Office of Insurance Regulation for implementation, with an overall effective date of July 1, 2023.