Zebersky & Payne, Fort Lauderdale Insurance Attorneys FAQs

What are types of coverage are in typical Florida auto insurance policies?
Does the No-Fault Law still exist in Florida?
How does Florida’s No-Fault Law cover persons under motor vehicle liability policies?
What is Personal Injury Protection insurance (PIP)?
To what extent can the Personal Injury Protection insurance (PIP) be claimed?
What is Uninsured or Underinsured motorist coverage?
What do homeowners’ policies cover?
What is underwriting an insurance policy?
What are the types of life insurance?
What is Term Life Insurance?

 

What are types of coverage are in typical Florida auto insurance policies?

All automobile owners in Florida are required to buy a minimum amount of bodily injury and property damage liability insurance before they can legally drive their cars. Most states have financial responsibility laws, which means that someone involved in an automobile accident will be required to furnish proof of insurance.

The mandatory requirements for Florida include minimum amounts of the following types of coverage:

• bodily injury liability (BIL) coverage of $125,000 per person, $250,000 per occurrence
• physical damage liability (PDL) coverage of $50,000
• personal injury protection (PIP) insurance coverage of $10,000

Does the No-Fault Law still exist in Florida?

Yes. Although the law was temporarily repealed on October 1, 2007, state lawmakers reenacted the law, which is effective from January 2008. Florida requires drivers to carry personal injury protection (PIP) insurance, effective January 1, 2008.

As part of the legislation restoring PIP coverage, insurance companies must notify policyholders as to how the mandatory restoration of PIP/no-fault will affect them. The notice must clearly inform the policyholder on these points:

• Florida law requires drivers to maintain PIP insurance coverage, which pays, covered medical expenses for injuries sustained in a motor vehicle crash by the policyholder, passengers, and relatives residing in the policyholder's household.

• if a policyholder fails to maintain PIP coverage, the State of Florida may suspend the policyholder's driver license and vehicle registration.

 
How does Florida’s No-Fault Law cover persons under motor vehicle liability policies?

Generally, no-fault laws divide persons covered under motor vehicle liability policies into two groups or classifications: direct insured and indirect insured. Direct insureds include individuals who entered into the contract with the insurance company and to whom the policy was issued. This includes an insured's spouse, relatives, and other household members. Whether someone falls into this category of coverage is determined by examining his or her relationship to the named insured.

Although  no-fault laws vary on who is covered and the terms used to describe them, the statutes commonly designate that:

• relatives of the named insured must reside or live in the named insured's household
• spouses are covered by the named insured's policy unless and until there is a divorce
• employees are usually covered by their employers' policies

Indirect insureds are individuals who have some relationship or connection to the insured vehicle. They include operators or drivers, occupants or passengers, and this group also includes pedestrians, persons walking along the streets, and sometimes motorcyclists.

What is Personal Injury Protection insurance (PIP)?

Personal Insurance Protection insurance coverage pays for medical expenses, lost wages, and the cost of replacing services normally performed by someone injured in an auto accident, regardless of fault. It may also cover funeral costs.

Not all states require PIP coverage, but states with no fault laws like Florida have limited the right to sue for non-monetary damages, such as pain and suffering. In most states, those covered by a PIP policy usually include:

• the policyholder
• the policyholder’s relatives in the same household
• any passengers
• other authorized drivers
• the policyholder and family members if they are injured while riding in someone else’s car or as pedestrians when struck by another vehicle

To what extent can the Personal Injury Protection insurance (PIP) be claimed?

Motor vehicle owners and operators in Florida are required to carry PIP for $ 10,000 for losses sustained by the insured or covered person as a result of bodily injury, sickness, disease, or death arising out of the ownership, maintenance, or use of a motor vehicle.

By law, PIP coverage pays the following benefits, up to the $ 10,000 limit:

• 80 % of reasonable and medically necessary medical expenses  
• 60 % of disability benefits for lost gross income and earning capacity
• 100 % of replacement services (such as child care, housekeeping, etc.); and
• $5,000 per individual death benefit

What is Uninsured or Underinsured motorist coverage?

Uninsured motorist coverage covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in an accident that is not your fault. Uninsured coverage will reimburse you, a member of your family or a designated driver for medical expenses, lost wages and other injury-related losses if an uninsured or hit-and-run driver hits one of you.

Underinsured motorist coverage is designed to protect an insured from bad drivers. Underinsured coverage pays you for damages that are more than the amount of coverage carried by a driver who has insufficient insurance to pay for your total loss. It will protect you far beyond PIP, as it will pay 100% of your medical bills and lost wages, as well as for your pain and suffering, up to whatever limits of coverage you carry.

What do homeowners’ policies cover?

An insurance policy will "indemnify" you for losses covered under the policy.  A homeowner's policy should typically cover:

• losses to real property because of fire, lightning, vandalism, windstorms, freezing, and other perils covered under the policy
• losses to personal items in the home that are damaged or destroyed by theft or the perils covered by the policy
• personal property lost or stolen outside the home, such as goods stolen from your car
• personal liability coverage for "bodily injury" in case a person is injured on the property

A renter's policy will cover many of the same things, subject to additional exclusions or limitations on the real property coverage since the insured is renting.

What is underwriting an insurance policy?

Underwriting an insurance policy is the process of approving an application for life insurance. This decision is based on many factors; however, an insurance company can deny an application for any legal reason.  The decision to approve an application and to determine its cost depends mainly on the risk category of the applicant. Risk considerations include the applicant's:

• Age
• Condition of health
• Income
• Health habits
• Marital status
• Number of children

The higher the risk classification, the higher the premium. Applicants with certain conditions may find it difficult, more expensive, or impossible to purchase life insurance. For example, a person with a history of cancer or AIDS may not be able to purchase life insurance.

What are the types of life insurance?

There are many varieties of life insurance: term, whole, universal, and variable life to mention a few. These policies satisfy the diverse needs of consumers shopping for premium rates, various payment options, and differing levels of risk. The most basic types of life insurance are term and permanent life insurance.

What is Term Life Insurance?

Term life insurance covers a short and specific period such as one year or five years. The insured pays a fixed premium or increasing premium for the period of the term. For example, an insured may pay a premium of $150 per year for five years for a $100,000 death benefit policy.  In return, the insurance company agrees to pay the $100,000 death benefit to the named beneficiary if the insured person dies during the term of the policy.  If the policy matures, and the insured has not died, the insurance company does not make any payment.  Key features of term life insurance include:

• A term life insurance policy does not build up any cash value
• It is not an asset of the insured
• The insured cannot surrender the policy early and withdraw any cash.