Opinion ID: 78339
Heading Depth: 2
Heading Rank: 1

Heading: State Regulatory System

Text: Waters argues Progressive's failure to notify the Florida Department of Highway Safety and Motor Vehicles (FDHSMV) that the Policy expired before the date of the accident extended the Policy's coverage. We disagree. Under Florida law, motor carriers operating commercial vehicles interstate must register directly with the FDHSMV or a similar agency in a reciprocal state. Fla. Stat. §§ 207.004(1)(a), 207.0281. Commercial motor vehicles are subject to higher liability insurance coverage requirements than ordinary automobiles and must prove compliance with those higher limits when registering. Fla. Stat. §§ 320.02(5)(a); 627.7415(4). Critical to this case, each motor carrier must maintain a liability insurance policy in full force and effect and the policy may not be canceled on less than 30 days' written notice by the insurer to the [FDHSMV]. Fla. Stat. § 320.02(5)(e). As the district court found, Florida Statutes section 320.02(5)(e) applies when an existing policy is cancelled, but not when a policy expires because of non-renewal by the insured. The distinction between these two terms is recognized by insurance treatises and Florida law. See 3-16 Holmes' Appleman on Insurance 2d § 16.7 (2009) ([Cancellation] is to be distinguished from the use of the term `termination'....); 2 Couch on Insurance § 30:2 (3d ed. 2008) (The right to cancel is distinct from a policy's lapse, or expiration by its own terms.); Safeco Ins. Co. v. Oehmig, 305 So.2d 52, 54 (Fla. 1st DCA 1974) (construing a notice of cancellation required by Florida Statutes section 627.728, which expressly distinguishes between cancellations and nonrenewals). By the plain terms of the Florida statute, we find Progressive's failure to notify the FDHSMV of the Policy's expiration did not result in the continuation of insurance coverage beyond September 11, 2005. Accordingly, we affirm the district court's order granting summary judgment to Progressive on the state law issue.