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Senate Bill sb1294
Florida Senate - 2006
SB 1294
By
Senator Fasano
11-962-06
A bill to be entitled
An act relating to motor vehicle
insurance; amending s.
627.744, F.S.; deleting
a provision that exempts policies issued in certain counties
from the requirement that a private passenger vehicle undergo a
preinsurance inspection; deleting a requirement that a physical
imprint or other record be made of the vehicle identification
number; requiring that a preinsurance inspection include certain
color images of the vehicle; providing for suspension of
physical damage coverage if the preinsurance inspection is not
completed within a specified period; requiring notice and an
adjustment in the premium upon suspension of physical damage
coverage; providing an effective date.
Be It Enacted by the Legislature of
the State of Florida:
Section 1. Section
627.744,
Florida Statutes, is amended to read:
627.744
Required preinsurance inspection of private passenger motor
vehicles.--
(1) A private passenger motor
vehicle insurance policy providing physical damage coverage,
including collision or comprehensive coverage, may not be issued
in this state unless the insurer has inspected the motor vehicle
in accordance withthis section.
(2) This
section does not apply:
(a) To a
policy for a policyholder who has been insured for 2 years or
longer, without interruption, under a private passenger motor
vehicle policy that which provides physical damage coverage, if
the agent of the insurer verifies the previous coverage.
(b) To a new, unused motor vehicle
purchased from a licensed motor vehicle dealer or leasing
company, if the insurer is provided with:
1. A bill of sale or buyer's order
that which contains a full description of the motor vehicle,
including all options and accessories; or
2. A copy of the title which
establishes transfer of ownership from the dealer or leasing
company to the customer and a copy of the window sticker or the
dealer invoice showing the itemized options and equipment and
the total retail price of the vehicle.
For the purposes of this paragraph,
the physical damage coverage on the motor vehicle may not be
suspended during the term of the policy due to the applicant's
failure to provide the required documents. However, payment of
a claim is conditioned upon the receipt by the insurer of the
required documents, and no physical damage loss occurring after
the effective date of the coverage is payable until the
documents are provided to the insurer.
(c) To a temporary substitute
motor vehicle.
(d) To a motor vehicle that which
is leased for less than 6 months, if the insurer receives the
lease or rental agreement containing a description of the leased
motor vehicle, including its condition. Payment of a physical
damage claim is conditioned upon receipt of the lease or rental
agreement.
(e) To a vehicle that is 10 years
old or older, as determined by reference to the model year.
(f) To any renewal policy.
(g) To a motor vehicle policy
issued in a county with
a 1988 estimated
population of less than 500,000.
(g)(h) To any other vehicle or
policy exempted by rule of the commission. The commission may
base a rule under this paragraph only on a determination that
the likelihood of a fraudulent physical damage claim is remote
or that the inspection would cause a serious hardship to the
insurer or the applicant.
(h)(i) When the insurer's
authorized inspection service has no inspection facility either
in the municipality in which the automobile is principally
garaged or within 10 miles of such municipality.
(i)(j) When the insured vehicle is
insured under a commercially rated policy that insures five or
more vehicles.
(j)(k) When an insurance producer
is transferring a book of business from one insurer to another.
(k)(l) When an individual
insured's coverage is being transferred and initiated by a
producer to a new insurer.
(3) This subsection does not
prohibit an insurer from requiring a preinsurance inspection of
any motor vehicle as a condition of issuance of physical damage
coverage.
(4) The inspection required by
this section shall be provided by the insurer or by a person or
organization authorized by the insurer. The applicant may be
required to pay the cost of the inspection, not to exceed $5.
The inspection shall be recorded on a form prescribed by the
commission, and the insurer shall be provided with direct and
timely access to the inspection and
the images via the
Internet or the form
or a copy shall be retained by the insurer with its policy
records for the insured. The insurer shall provide a copy of
the form to the insured upon request. Any inspection fee paid
directly by the applicant may not be considered part of the
premium. However, an insurer that provides the inspection at no
cost to the applicant may include the expense of the inspection
within a rate filing.
(5) The inspection shall include
at least the following:
(a) Taking a physical imprint of
the vehicle
identification number of the vehicle
or otherwise recording
the vehicle identification number in a
manner prescribed by
the commission.
(a)(b) Recording the presence of
accessories required by the commission to be recorded.
(b)(c) Recording the locations of
and a description of existing damage to the vehicle.
(c) Taking two color images at
oblique angles, clearly
showing all four sides of the vehicle
and any observable prior
damage, and taking one color image of
the Motor Vehicle Safety
Standard Label, which includes the
vehicle identification
number. As used in this paragraph, the
term "color image"
means any technology producing a clear
visual image in color,
including, but not limited to, an
instant-type photograph, a
photograph using the film process, a
digital photograph, or
other digital-imaging process that may
be accessed, stored,
and retrieved via the
Internet.
(6) An insurer may defer an
inspection for 10 business
30 calendar days
following the effective date of coverage for a new policy, but
not for a renewal policy, and for additional or replacement
vehicles to an existing policy, if an inspection at the time of
the request for coverage would create a serious inconvenience
for the applicant and such hardship is documented in the
insured's policy record.
(7)(a) The physical damage
coverage, including
collision and comprehensive coverage,
for which preinspection
is required under this section shall
be suspended if the
preinsurance inspection is not
completed within 10 business
days after the effective date of the
coverage. Suspension of
coverage applies to
all insureds, owners, and lienholders.
(b) If physical damage coverage,
including collision
and comprehensive
coverage, is suspended, the insurer shall:
1. No later than the 30th calendar
day after the
effective date of suspension, mail a
notice of suspension of
physical damage coverage to the
insured, the producer of
record, and any
lienholder of record;
2. Obtain a certificate of mailing
or other evidence
of mailing the notice of suspension of
physical damage
coverage to the insured and retain the
certificate and copy of
the notice with the
insurer's policy records for the insured;
and
3. Make a pro rata adjustment to
the premium in the
form of a premium refund or credit if
the physical damage
coverage is suspended for more than 10
days. A refund of
premium, if applicable, shall be sent to the
insured within 45
days after the effective date
of the suspension.
(c) A reinstatement of physical
damage coverage is
effective only upon inspection and
payment by the insured to
the insurer of the adjusted premium
for the physical damage
coverage in full or in accordance with
the insurer's normal
payment plan. Such reinstatement is
effective at the time of
inspection.
(8)(7) The commission may, by
rule, establish such procedures and notice requirements that it
finds necessary to administer implement this section.
Section 2. This act shall take
effect October 1, 2006.
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SENATE
SUMMARY
Deletes a
provision exempting policies issued in certain counties from the
requirement that a private passenger motor vehicle undergo a
preinsurance inspection. Deletes a requirement that a physical
imprint or other record be made of the vehicle identification
number. Requires that a preinsurance inspection include certain
color images of the vehicle. Requires that physical damage
coverage be suspended if the preinsurance inspection is not
completed within 10 business days. Requires an adjustment in the
premium upon suspension of physical damage coverage.