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Motor Vehicle Coverage Exclusions: Named-Driver Exclusion


CS/SB 420

Named-Driver Exclusion

pp. 1–9, §§627.747, 324.151, 627.736, 627.7407, F.S.

Authorizes private passenger motor vehicle policyholders to exclude identified individuals from the following coverages under their policy:

  • Personal injury protection (PIP) coverage applicable to the identified individual’s injuries, lost wages, and death benefits;

  • Property damage liability coverage;

  • Bodily injury liability coverage when required by law;

  • Uninsured motorist coverage for any damages sustained by the excluded individual; and,

  • Any coverage the policyholder is not required by law to purchase.

However, a private passenger motor vehicle policy may not exclude coverage when:

  • The identified excluded individual is injured while not operating a motor vehicle;

  • The exclusion is unfairly discriminatory under the Florida Insurance Code; or,

  • The exclusion is inconsistent with the underwriting rules filed by the insurer.

The exclusion of an identified named driver is invalid unless the named policyholder consents in writing to the exclusion of a named driver and the excluded named drivers are listed on the policy’s declarations page or policy endorsement.

An individual excluded by name in an insurance policy would not be covered for damages that occur while operating a motor vehicle that is insured under the policy. An excluded driver, however, must separately comply with financial responsibility laws.

Current law requires insurance coverage that provides personal injury protection, or that is used to meet mandatory financial responsibility requirements, be issued to all driving age individuals residing in the same household.

Florida’s motor vehicle insurance laws do not currently authorize an insurer to exclude mandatory coverages of a named individual, up to minimum limits required under the laws. Thus, the Office of Insurance Regulation (OIR) requires that an insurer provide coverages satisfying minimum financial responsibilities requirements under Florida law, even when a named driver exclusion is elected.

Similar language is also contained in the Motor Vehicle Insurance bill (SB 54) that passed the Legislature this session.

Effective date: July 1, 2021

Chapter No. 2021-96, LOF

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