Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69V - Finance › Chapter 69V-160 - FLORIDA CONSUMER FINANCE ACT › Section 69V-160.025 - Property Insurance on Loans

Current through Reg. 50, No. 138; July 16, 2024
(1)
				Coverage. When, at the written request of the borrower, the licensee places
				insurance to protect household goods and appliances used as collateral for a
				loan, the policy shall include coverage against the perils of fire and
				broad-form extended coverage. At the option of the borrower, the policy may
				contain the following coverages: transportation and change of location;
				burglary; and rental reimbursement in event of loss.
(2) Issuer. A licensee may provide property
				insurance only on written authorization signed by the borrower through a duly
				licensed agent and an insurance company qualified by the Insurance Commissioner
				to do business in the State of Florida.
(3) Insurance voluntary. The borrower shall
				not be required to purchase a policy from any certain company, agent, broker or
				person as a condition precedent to the granting of a loan. Purchase of property
				insurance, from the licensee, shall be entirely voluntary on the part of the
				borrower and so stated in a signed application requesting the licensee to place
				property insurance on the collateral.
(4) Forms and rates. The policy forms and
				rates charged must be in compliance with the Florida Insurance Code and
				regulations of the Commissioner of Insurance. The licensee shall retain, on the
				premises of the lending institution office, complete copies of the policy forms
				used and manuals of rates charged.
(5) Limitation. Property insurance may not be
				placed where there are not specific household or appliance goods offered as
				collateral or where the borrower has valid and collectible fire and extended
				coverage insurance on the same collateral to offer the licensee.
(6) Delivery of policy. The licensee shall
				deliver or cause to be delivered to the borrower evidence of insurance at the
				time the loan is made and deliver or cause to be delivered to the borrower a
				copy of the policy within fifteen days from the date the loan was
				made.
(7) Amount. The amount of
				property insurance shall be limited to the amount of indebtedness or the
				reasonable value of the property insured, whichever is less.
(8) Unearned premium. The unearned premium
				resulting in cancellations shall be computed and refunded in accordance with
				the cancellation provisions of the insurance policy placed by the licensee on
				behalf of the borrower. Any minimum retained premium shall not exceed $3.00. A
				pro rata refund shall be allowed on loan renewals.
(9) Total losses. On total losses, the
				property insurance shall pay the original amount of insurance, regardless of
				the value of the property or the amount owing at the time such total loss
				occurs. Partial losses shall be settled on an actual cost to repair or replace
				basis and there shall be no deductions from the amount of settlement for
				depreciation or betterment.
(10)
				Description. Where the licensee provides property insurance on specific
				household or appliance goods, the credit files of the licensee shall contain a
				description sufficient for identification of all the property insured as
				collateral.
(11) Collateral
				Insurance. When real or personal property, other than household goods and
				appliances, are used as collateral for a loan and the borrower is required, by
				the loan contract, to keep the collateral insured, a physical damage policy may
				be required naming the licensee as "Loss Payee." Should such insurance expire
				or be cancelled, the borrower may be required to furnish the licensee with
				replacement coverage. Should the borrower fail to furnish such a policy on
				written request, either a vendor's single interest or a dual interest
				replacement policy may be obtained by the licensee and the premium charged to
				the loan account.
Rulemaking Authority 20.05(5), 516.22(1) FS. Law
					 Implemented 516.031(3) FS.
New 9-1-75, Amended 8-16-83, Formerly 3D-160.25,
					 3D-160.025, Amended 10-29-12.