PDF: 
download | view
DEPARTMENT
OF INSURANCE
Division
of Insurer Services
RULE
TITLE: Required
Preinsurance Inspection of Private‑Passenger
Motor‑Vehicles
SPECIFIC
REASONS FOR FINDING AN IMMEDIATE DANGER TO
THE PUBLIC HEALTH, SAFETY AND WELFARE:
The
Department finds an immediate danger to the public
health, safety and welfare in that the legislature enacted
Chapter
90119,
in particular section 41, requiring preinspection of private
passenger motor vehicles effective October
1, 1990. The Department has been diligently
working to draft and implement this section,
however it has been unable to meet this deadline.
The
new law requires the Department develop procedures,
forms and notices as needed to implement the statute. Such
procedures
are needed immediately to provide uniformity and
consistency among insurers and to provide uniformity in the
type of
notice consumer insureds receive
REASONS
FOR CONCLUDING THAT THE PROCEDURE USED
IS FAIR UNDER THE CIRCUMSTANCES:
An
emergency rule is fair under the circumstances as
the best method to provide acceptable interim procedures, forms
and notice of the preinsurance inspection requirement
and
the penalty of suspension of motor vehicle insurance
coverage for failure to comply.
4ER90‑5
Required preinsurance inspection of private passenger
motor vehicles.
(1)
Private passenger motor vehicle insurers providing
physical damage coverage, including collision or comprehensive
coverage,
shall comply with .Section 627.744 Florida‑ Statutes
regarding preinsurance inspections requirements. Certain
preinsurance inspections are excluded as prescribed by
Section 627.744 (2) ‑ (a) ‑ (h), Florida
Statutes. If a vehicle which has been previously
inspected by an
insurer transfers to another insurer under common ownership with
the original insurer, a re‑inspection of the vehicle
will not be required. The preinsurance inspection form
shall be transferred to the new insurer and retained with
its policyholder records. The original
insurer will‑xetain a copy of the preinsurance
inspection form as provided in section (5)
below. The counties with an estimated population
in 1988 over 500,000 were Duval, Palm Beach, Broward,
Dade, Orange Hillsborough, and Pinellas.
(2) "Private
passenger motor vehicle" shall be defined
as in Section 627.732(1)(a).
(3)
The inspection shall be performed at no specific cost or
charge to the applicant.
(4)
The inspection shall be recorded on form D14‑507
entitled "Florida Motor Vehicle Preinsurance Inspection
Form." An insurer may, however, use its own form(s)
and any additional information deemed necessary by the
insurer as long as the form(s) used by each insurer has
all the information as contained in form DI4‑507.
The insurer may also attach photographs of the inspected
vehicle evidencing whether there is pre‑existing
damage to the vehicle. Form DI4‑507 is adopted
and incorporated by reference.
(5)
The pre insurance inspection form or a copy ,thereof shall
be retained by the insurer with the insured's policy records
at the insurer's home office, regional office, or district
office. When the insurer is a surplus lines company, these
records shall be kept in the Florida office of the surplus
lines agent for that insurer. The original signed preinsurance
inspection form shall be maintained by the insurer/surplus
lines agent and shall be made available to the Department
upon request.
(6)
The preinsurance inspection form must be completed by a
person or organization authorized by the insurer other
than the applicant or insured. Such person
or organization may be an employee of the insurer, the
agent/producer or employee thereof, or an inspection service
including employees thereof. The competency and trustworthiness
of the person or organization authorized by the insurer
to conduct preinspections shall be the responsibility of
the insurer.
(7) in
addition to the inspection form, the preinsurance inspection
shall include at least (a), (b), or (c) as follows which
will be for the purpose of positively identifying the vehicle
to be insured:
(a)
The taking of a physical imprint of the vehicle
identification
number (VIN) of the motor vehicle by a representative
of the insurer other than the applicant or insured.
A physical
imprint is defined as a tracing or a mold of the
actual VIN label (normally located on the dash)
of the motor vehicle
and seen through the windshield from the outside
looking into the vehicle. The taking of a physical
imprint shall
be made by physical contact with the motor vehicle.
(b)
The taking of a close‑up photograph of the VIN label
(where such VIN label is usually located on the dash of
the vehicle) or the photographing of the Environmental
Protection Agency/Federal Certification (EPA) sticker (usually
found on the operator's side door jamb). Such close‑up
photograph shall be taken by a representative
of the insurer other than the applicant
or insured. The photograph must
be of a sufficient clarity and quality
that the information contained on the
dash VIN label or the EPA sticker including
the VIN is legible and easily readable.
The VIN recorded
on the preinsurance inspection form shall
be obtained from a location on the vehicle
other than the location being
photographed.
(c)
The attesting to the authenticity of the VIN
by both the insured and the insurer's representative
who shall not be the insured.If
this option is selected, each inspector
must individually observe the VIN
(usually imprinted on a label on the dash)
of the vehicle and record same
on form DI4‑507. Each
inspector must also individually
observe and attest to the VIN as displayed
on the EPA sticker (usually affixed
to the operator side door jamb),
and the VIN as recorded
on the vehicle registration form.
Such attestation shall be accomplished by
signing .the statement. appearing.
on
the space provided on the vehicle
inspection form. If discrepancies are noted such
as a missing VIN, a defaced VIN,
or an inconsistency
in the VINs; such discrepancies
shall be noted on the motor vehicle preinsurance
inspection form.
(8)
An insurer may defer an inspection for
seven (7) calendar days following (a) the
effective date of coverage
for a new policy or (b) the actual notice
to the insurer or its agent of additional
or replacement vehicle(s) to
an existing policy, if an inspection at the
time of the request for coverage would create
a serious inconvenience
for the applicant. The applicant shall be
notified of the requirement for the inspection
by a form which contains
substantially the information in. Form DI4‑505 or
Form DI4‑508. Failure to obtain the inspection within
such time period shall result in suspension of the insurance
coverage immediately following the time period, which consequences
shall be disclosed to the applicant on form DI4‑506.
Such suspension shall continue until the inspection is
effected. Whenever physical damage coverage is suspended
for more than 14 days, the insurer shall make a pro‑rata
premium adjustment (return premium or credit) which shall
be mailed to the insured no later than 45 days after the
effective date of the suspension. Form DI4‑505, DI4‑506,
and DI4‑508 are adopted and incorporated by
reference.
(9)
Form DI4‑505, Form DI4‑506, Form DI4‑507,
and Form DI4508 may be obtained by writing to the
Bureau of Property and Casualty. Forms and Market Conduct
Review 312A Larson Building, Tallahassee, Florida 32399‑0300.
The effective date of this emergency rule
is October 1, 1990.
Specific
Authority 62.4.308(1), FS. and 627.744 (5),
as created in Section 41, Chapter 90‑119, Laws of Florida. Law
Implemented 627.744 as created in Section 41, Chapter 90‑119,
Laws of Florida.
THIS
RULE TAKES EFFECT UPON BEING FILED WITH THE SECRETARY
OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN
THE RULE. THE EFFECTIVE DATE IS OCTOBER 1, 1990.
CERTIFICATION
OF
DEPARTMENT
OF INSURANCE AND TREASURER
EMERGENCY
RULES
FILED
WITH THE DEPARTMENT OF STATE
I
do hereby certify that an immediate danger to the
public health, safety or welfare requires an emergency
action
and that the attached rule is necessitated by the
immediate danger. I further certify that the procedures
used in the
promulgation of this emergency rule were fair under
the circumstances‑and that the rule otherwise complies
with subsection 120.54(9), Florida Statutes. The
adoption of this rule was authorized by the head of the
agency and
this rule is hereby adopted upon its filing with
the Department of State:
Specific
Rulemaking Authority: 624.308
FS.627.744
FS
Law Being Implemented or Made Specific: 627.744 FS
Under the
provision of paragraph 120.54 (9) (d), this rule takes effect
upon filing unless a later, time and date, not to exceed
20 days from filing, it set out below:
Effective:
October 1, 1990
Treasurer
and Insurance
Commissioner
Number
of pages certified
STATEMENT
OF THE DEPARTMENT'S REASONS THE
PROCEDURE IS FAIR UNDER
THE CIRCUMSTANCES
The
Department of Insurance believes that adopting
an emergency rule is the fairest method to provide notice,
uniformity,
and consistency in the procedures and practices
of implementing the newly required preinsurance inspection
of private passenger
motor vehicles. The effective date of the
act did not allow the Department sufficient time to develop
and implement
the forms and procedures for preinsurance
inspection. The statute requires insurers perform certain
functions on
particular forms to be prescribed by the
Department:‑ The
insurer, being that it is subject by statute
to regular examination, seeks a clear direction and mandate
on implementation
prior to the statutes' effective date. Therefore,
the Department believes an emergency rule to provide such
direction is
the fairest way to address this need.
CERTIFICATION
OF FORMS
INCORPORATED
BY REFERENCE
AND
FILED WITH THE SECRETARY OF STATE
BY
THE DEPARTMENT OF INSURANCE
Pursuant
to Rule 1S‑1.005, Rules of the Department of State,
I do hereby certify that attached are true and correct
copies of the following forms, incorporated by reference
in Rule 4ER90‑5:
DEPARTMENT
OF INSURANCE
Treasurer
and Insurance
Commissioner
Number of Pages Certified
Date
STATEMENT
OF FACTS FINDING IN
IMMEDIATE
DANGER TO THE PUBLIC
HEALTH,
SAFETY OR WELFARE
The
Department of Insurance hereby states that the following
circumstances constitute an immediate danger to the public
health, safety or welfare:
During
the 1990 legislative session, the Legislature for the first
time required inspection of private passenger automobiles
prior to insurers providing physical damage, including
collisionor
comprehensive coverage.This requirement
becomes effective on October 1, 1990. No
specific procedures exist for identifying non‑exempted
counties, the style and format of the required
preinsurance
inspection
form, the retention by insurers of copies
of the preinsurance inspection form, clearly identifying
the insurer's responsibility
for proper completion of the form, the methods
of
properly identifying a vehicle and the methodology
of deferring
inspection for additional or replacement
vehicles. Further, there are no existing forms
to accomplish inspection,
inspection deferments or insurance suspensions.
The
purpose of physical damage coverages is to assure payment
to the insured for damage to or total loss of his automobile.
The purpose of requiring preinsurance inspection was to
stem the escalating incidences of fraudulent private passenger
automobile damage and theft claims in certain areas of
the State of Florida and thereby assure the stability of
physical damage insurance rates. If interim procedures
to implement preinsurance inspections are not immediately
implemented then the insuring public and insurers well
suffer great public harm as the result of delays in employing
uniform procedures for inspecting automobiles and properly
suspending and reinstating coverages. Additionally, diverse,
conflicting and unfair procedures may occur, as each insurer
would determine what the procedural means of the inspection
process would be. It is essential to provide for a uniform
set of procedures that would apply to all affected persons
equally in order to insure against discriminatory or inadequate
practices.
