Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-167 - PROPERTY AND CASUALTY INSURANCE CONTRACTS › Section 69O-167.002 - Private Passenger Motor Vehicle Insurance; Completion of Underwriting Notice of Incorrect Premium, Return of Unearned Premium

Current through Reg. 50, No. 138; July 16, 2024
(1) Pursuant to the provisions of Section
				627.728, F.S., any insurer which
				issues a policy of private passenger motor vehicle insurance in this state
				shall be required to complete the underwriting of the policy and make a final
				determination of the correct premium for the coverage set forth in the
				insurance application within sixty (60) days after the effectuation of
				coverage. The requirements of this subsection shall not apply in the event that
				an incorrect premium was charged due to material misrepresentation or fraud on
				the part of the insured in the application for insurance. Insurers asserting a
				common law right of rescission or otherwise asserting rights to void insurance
				policies ab initio shall, within 90 days of rescinding a policy, report
				electronically through the Florida Office of Insurance Regulation Industry
				Portal at http://www.floir.com/iportal. The report shall be on Form OIR-B3-493,
http://www.flrules.org/Gateway/reference.asp?No=Ref-08271
,
				"Report of Rescinded Policy," rev. 06/2017, which is hereby adopted and
				incorporated by reference. The report shall be filed electronically through the
				Florida Office of Insurance Regulation Industry Portal at
				http://www.floir.com/iportal. The insurer shall retain its files on each
				rescinded policy for three (3) calendar years from the date of the report to
				the Office. Each file shall contain a copy of the initial application, a copy
				of the policy, copies of any claim forms filed, all documentation used by the
				insurer as a basis for its rescission, including the basis for any denial of
				coverage; and the name, business address and telephone number of any
				independent claims adjusting service where files may be located, if no longer
				in the possession of the insurer.
(2) In the event that an insurer issues a
				policy of private passenger motor vehicle insurance and timely determines that
				the policyholder has been charged an incorrect premium, the insurer shall
				provide notice to the policyholder as provided in Section
				627.7282, F.S. Such notice shall
				include a period of time no less than ten (10) days and no greater than
				forty-five (45) days within which the policyholder has the option to pay the
				additional amount of premium due or to cancel the policy and demand a refund of
				any unearned premiums. The maximum 45-day time period shall not apply in the
				event the amount of the additional premium due is equal to or less than five
				percent of the correct premium.
(3)
				If the policyholder fails to timely respond to the notice referred to in
				subsection (2), above, the insurer shall cancel the policy as required in
				Section 627.7282, F.S., on a date no
				less than fourteen (14) days and no greater than forty-five (45) days after the
				notice, and return any unearned premium to the insured.
Rulemaking Authority 624.308(1) FS. Law Implemented
					 624.307(1), 624.424, 626.9541(1)(o)3.a.,
					 627.420,
					 627.421,
					 627.728,
					 627.7282
					 FS.
New 7-23-88, Amended 9-18-90, Formerly 4-28.005, 4-167.002,
					 Amended 7-30-17.