69H-2.010. Property Damage Coverage for State-Owned Vehicles

(1) The following definitions shall apply to the property damage coverage established in this rule:

(a) “Accidental loss” – A loss that is unintended by a law enforcement officer covered by this rule.

(b) “Actual cash value” – Replacement cost minus depreciation.

(c) “At fault” – A law enforcement officer shall be deemed “at fault” if the “contributing cause” code on a Florida Traffic Crash Report, Long Form, is anything other than code “01,” no improper driving action.

(d) “Motor vehicle” – Any self-propelled vehicle with two or more wheels, which is of a type both designed and required to be licensed for use on the highways of this state and any trailer or semi trailer designed for use with such vehicle. The term includes a “private passenger motor vehicle,” which is any motor vehicle which is a sedan, station wagon, or jeep-type vehicle and, if not used primarily for occupational, professional or business purposes, a motor vehicle of the pickup, panel, van, camper, or motor home type. The term also includes a “commercial motor vehicle,” which is any motor vehicle that is not a private passenger motor vehicle. The term does not include a mobile home or any motor vehicle which is used in mass transit, other than public school transportation, and designed to transport more than five passengers exclusive of the operator of the motor vehicle and which is owned by a municipality, a transit authority, or a political subdivision of the State.

(e) “Property damage” – Physical damage to the covered motor vehicle due to collision or impact with another vehicle or object or due to other accidental loss.

(2) Coverage Provided.

(a) The State Risk Management Trust Fund will pay for property damage to a motor vehicle owned by a state agency when this property damage occurs while the motor vehicle is being used by a law enforcement officer, as defined in Section 943.10, F.S., for off-duty work for which the officer must reimburse the state, subject to the exclusions and deductible amounts, as defined in paragraphs (2)(d) and (2)(e) of this rule. The Fund will pay reasonable repair costs or the actual cash value of the vehicle whichever is less.

(b) If an independent appraisal of the property damage is required, the Fund will pay for this expense. If the accidental loss results in the motor vehicle being declared a total loss, the Fund will pay the state agency the actual cash value of the motor vehicle, minus any applicable deductible amounts, and the Fund shall retain the salvage value of the motor vehicle.

(c) The Fund will reduce the payments for property damage to the state agency by any applicable deductible amount when the law enforcement officer is determined to be at fault in causing property damage to the motor vehicle.

(d) Any proceedings to appeal the determination of fault will be pursued with the employing agency.

(e) Exclusions: The Fund will not pay for property damage if:

1. The law enforcement officer was not in the course and scope of approved off-duty activities when the property damage occurred;

2. The law enforcement officer is found to have acted in bad faith, with malicious purpose, or in a manner exhibiting wanton and willful disregard of human rights, safety or property;

3. The law enforcement officer does not have to reimburse the State for use of the motor vehicle;

4. The property damage is due to wear and tear or mechanical breakdown;

5. The property damaged is equipment owned by the State and unattached to the motor vehicle; or

6. The property damaged is the personal property of the law enforcement officer.

(f) Limit of Liability: The Fund’s limit of liability will be the lesser of the actual cash value of the damaged property or an amount necessary to repair or replace the property with other property of like kind and quality. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total loss. If a repair or replacement results in better than like kind and quality, the Fund will not pay for the betterment.

(g) Secondary coverage: The coverage set forth in this rule is secondary to any primary coverage available from any other source. A claim must first be presented under all existing primary coverages available to the claimant, after which a claim under this rule may be made.

(3) Premium Assessments and Reimbursement.

(a) The Division will determine the exposure base for the calculation of costs of providing physical damage coverage according to the number of law enforcement officers using state motor vehicles while performing off-duty employment.

(b) The Division will determine the experience base by the dollar amount paid on claims.

(c) Each state agency shall, no later than July 1 each fiscal year, report to the Division the estimated number of law enforcement officers using state motor vehicles while performing their off-duty employment for the upcoming fiscal year. A state agency shall use Form DFS-D0-861, “Exposure Base Inquiry Survey,” (Effective 07/23), incorporated by reference in Rule 69H-2.003, F.A.C., in the Division’s Insurance Management System at https://live.origamirisk.com/.

(d) Premium calculation.

1. The Division will calculate the total premium based on agencies’ experience and exposure, except for the first year. Assessment amounts will fluctuate each year depending on exposure and experience criteria.

2. The assessment amount will be the total anticipated cash payments to be made for property damage payments during the fiscal year, plus an additional charge to offset the Division’s operating costs. The Division will calculate this additional charge by multiplying the total anticipated annual property damage payments by an industry average operating cost percentage.

3. The Division will apply any surplus or deficit amounts assessed in the fiscal year, less the administrative portion of the assessment, against the following fiscal year assessment.

4. The Division will assess each state agency according to its proportionate amount of the entire statewide assessment.

(e) Invoices.

1. Each fiscal year, the Division will invoice each state agency for the total amount of its assessment.

2. Each state agency shall pay the assessed amount to the Division within thirty days following the state agency’s receipt of the assessment invoice. Payments will be provided from one of the agencies’ standard operating categories.

3. Each state agency will administer and collect the law enforcement officers’ portion of the agency assessment. The Division shall have no role in this administration and collection. Reimbursements will not be given to officers who leave state employment during the covered fiscal year. The premium is annualized, and will not be prorated for those officers who leave state employment or who request coverage during the covered fiscal year.

(4) Deductible Assessment.

(a) The Division will apply a deductible amount toward the costs of repairs and/or total loss payments, for accidents in which the off-duty officer is determined to be at fault.

(b) The Division will adjust the deductible amount at the beginning of each fiscal year. The amount of the deductible shall not exceed $500 per incident. The Division will notify state agencies of the deductible amount no later than July 1 of each fiscal year.

(5) Claims Processing.

(a) Accidents shall be reported to the Division, using Form DFS-D0-261, “Automobile Accident Report,” (Effective 07/23), incorporated herein by reference. Copies of the form are available from the Division of Risk Management, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0338, or online at https://myfloridacfo.com/Division/Risk/, or http://www.flrules.org/Gateway/reference.asp?No=Ref-15476.

(b) The state agency will submit all supporting documentation for the accident to the Division, including at a minimum the following:

1. The name of the state agency employing the law enforcement officer;

2. A statement certifying that:

a. The employee is a law enforcement officer as defined in Section 943.10, F.S.;

b. The state agency approved the off-duty employment;

c. The law enforcement officer was required to reimburse the agency for use of the motor vehicle; and,

d. The law enforcement officer purchased coverage by payment of a premium for the fiscal year in which the accident occurred, verified by a receipt from the agency showing such payment or a copy of the law enforcement officer’s pay stub showing such payment.

3. If the form described in paragraph (5)(a) of this rule is unavailable, then an opinion as to whether the state agency believes the law enforcement officer was at fault in causing the property damage;

4. Photographs of the vehicle damage if feasible;

5. If other than a total loss of the motor vehicle occurs, then two estimates for vehicle repairs, and invoices for the repairs; and,

6. All available accident reports.

(c) The Division will adjust the claim and issue payment for the repairs to the state agency, according to its Policies and Procedures.

(d) In the event of a total loss claim the Division will dispose of the salvage and retain any salvage value.

(e) The Division will pursue subrogation on claims caused by the negligence of another party, and will retain any funds recouped by it.

Rulemaking Authority 284.311 FS. Law Implemented 284.30, 284.311, 284.36 FS. History–New 5-4-05, Amended 7-18-23.