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Florida Motor Vehicle No-Fault Law OIR-07-12M |
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08/06/2007 |
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INFORMATIONAL MEMORANDUM OIR-07-12M
ISSUED - August 6, 2007
Florida Office of Insurance Regulation
Kevin M. McCarty, Commissioner
Florida Motor Vehicle No-Fault Law
(Intended for Insurance Carriers writing Motor Vehicle Insurance)
The purpose of this memorandum is to notify insurers of the
requirements of law as a result of the provisions of the “Florida Motor
Vehicle No-Fault Law”, Sections 627.730-627.7405, Florida Statutes,
which state that the law stands repealed effective October 1, 2007. If
the Legislature takes no action prior to October 1, 2007, the repeal
will take effect. This memorandum describes some actions that insurers
should take, in the event of a repeal, to facilitate an orderly
transition to a tort system of compensation for automobile accident
victims. Insurers are cautioned that this memorandum does not contain
legal advice (which should be sought from the insurer’s counsel).
Some insurers have filed and obtained approval for transitional policy language. You may locate these by going to www.fldfs.com/edms and searching for the keyword “PIP Sunset”.
Companies are encouraged to inform insureds, in a clear and unambiguous
manner, about the effects of the No-Fault repeal and about factors
consumers should consider in deciding what coverages and limits to
purchase in a tort environment. The potential for delays in
compensation pending a tortfeasor’s insurer’s investigation or for
unreimbursed losses for individuals who are at-fault and lacking
adequate health and disability insurance should be brought to the
insured’s attention. The increased exposure to lawsuits with the repeal
of tort exemption should also be addressed.
The Office of Insurance Regulation stresses that communications with
insureds must be accurate in all respects. For instance, insureds
should be cautioned that premiums quoted and statements about
compensation for automobile accident victims subsequent to October 1,
2007 are contingent on the repeal of the “Florida Motor Vehicle
No-Fault Law” which may not take effect if the Florida Legislature
amends the law prior to October 1, 2007.
If you have any questions regarding this Informational Memorandum,
please contact Mike Milnes, Deputy Director, Property and Casualty
Product Review, Florida Office of Insurance Regulation at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or (850) 413-5306.
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