9.5 The FR-44 Requirement, PAP Part A Liability and Part B Medical Payments

1. Enhanced Financial Responsibility for DUI: The FR-44 Requirement (F.S. § 324.023)

Following severe alcohol-related traffic fatalities, the Florida Legislature enacted F.S. § 324.023, establishing dramatically higher liability limits for anyone convicted of Driving Under the Influence (DUI) under F.S. § 316.193 on or after October 1, 2007.

Enhanced DUI Statutory Limits

Any person convicted of DUI must establish and maintain the following heightened limits:

• $100,000 Bodily Injury Liability per person
• $300,000 Bodily Injury Liability per accident
• $50,000 Property Damage Liability per accident
• (100/300/50 Split Limits) OR a $350,000 Combined Single Limit (CSL)

The FR-44 Filing Certification

Proof of these enhanced limits cannot be submitted on an ordinary SR-22 form. The driver must secure an FR-44 Certificate of Financial Responsibility.

If an insurer cancels or non-renews an FR-44 policy, it must immediately notify the FLHSMV electronically, resulting in an instant suspension of the driver's license and vehicle registration.

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2. Part A: Liability Coverage Mechanics

Under PAP Part A, the insurer agrees to pay damages for bodily injury or property damage for which an insured becomes legally responsible because of an auto accident. The policy also establishes two vital insurer obligations: the duty to defend and supplementary payments.

Split Limits vs. Combined Single Limit (CSL)

• Split Limits (e.g., 25/50/25):
  • First number ($25,000): Maximum BI paid to any one person in a single crash.
  • Second number ($50,000): Maximum BI paid for all persons combined in a single crash.
  • Third number ($25,000): Maximum Property Damage Liability paid for all damaged property of others.
• Combined Single Limit (CSL): A single dollar limit (e.g., $100,000 CSL) that applies to all bodily injury and property damage claims arising from a single accident, without individual per-person caps.

The Insurer's Duty to Defend

The insurer has the explicit right and duty to defend any lawsuit brought against an insured seeking damages covered by the policy, even if the allegations are groundless, false, or fraudulent.

• Defense Costs Are In Addition to Policy Limits: Legal defense expenses (attorney fees, court costs, expert witness fees, depositions) do not erode or reduce the policy liability limits available to pay settlements or judgments.
• Termination of Duty: The insurer's duty to defend ends only when the applicable limit of liability has been exhausted by actual payment of judgments or formal settlements.

Supplementary Payments (Paid in Addition to Limits)

PAP Part A provides supplementary payments that do not reduce the liability limits:

1. Up to $250 for the cost of bail bonds required because of an accident resulting in bodily injury or property damage.
2. Premiums on appeal bonds and bonds to release attachments in suits defended by the insurer.
3. Post-judgment interest accruing after entry of a judgment, until the insurer tenders its limits.
4. Up to $200 per day for actual loss of earnings when the insured attends trials or hearings at the insurer's request.
5. Other reasonable expenses incurred at the insurer's request.

Core Part A Exclusions

Part A liability does not cover:

• Intentional injury or damage caused by the insured.
• Damage to property owned or being transported by the insured.
• Damage to property rented to, used by, or in the care of the insured (except rented private residences or garages).
• Bodily injury to an employee of the insured arising out of employment (covered by Workers' Compensation).
• Using a vehicle as a public or livery conveyance (driving for Uber, Lyft, or delivering food for DoorDash/UberEats without a commercial rideshare endorsement).
• Commercial use of vans or trucks in business operations.
• Vehicles with fewer than four wheels (motorcycles, dirt bikes).

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3. Part B: Medical Payments Coverage (Med Pay)

PAP Part B Medical Payments coverage pays reasonable and necessary medical and funeral expenses incurred within three years from the date of an accident. Coverage applies without regard to fault to:

• The named insured and resident family members while occupying any motor vehicle or when struck as a pedestrian.
• Any other person while occupying the covered auto.

Florida Med Pay Operates as Excess Over PIP

In most non-no-fault states, Med Pay is primary. However, in Florida, PIP is primary by statute.

• Florida Med Pay acts as excess coverage over PIP.
• It specifically bridges the financial gaps left by PIP:
  1. It pays the 20% medical copayment not covered by PIP (since PIP pays 80%).
  2. It pays medical expenses that exceed the $10,000 PIP policy limit (or $2,500 non-EMC limit).
  3. It can cover the policyholder's PIP deductible.

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