House Bill 1127c1

    Florida House of Representatives - 1998             CS/HB 1127

        By the Committee on Financial Services and Representatives
    Jones and Lippman





  1                      A bill to be entitled

  2         An act relating to motor vehicle insurance;

  3         amending s. 627.743, F.S.; requiring an insurer

  4         to provide notice to the owner of a damaged

  5         vehicle as to the consequences of failure to

  6         use the insurance proceeds in accordance with a

  7         security agreement; providing an exception;

  8         amending s. 627.7295, F.S.; providing an

  9         exception to minimum down payment requirements;

10         providing an effective date.

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12  Be It Enacted by the Legislature of the State of Florida:

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14         Section 1.  Section 627.743, Florida Statutes, is

15  amended to read:

16         627.743  Payment of third-party claims.--

17         (1)  Before making any payment on a claim for damage to

18  an automobile for a total loss, regardless of amount, which

19  automobile is owned by a person who is not named as an insured

20  in the policy under which payment is made, the insurer shall

21  first cause a search of the records of the Department of

22  Highway Safety and Motor Vehicles to be made in order to

23  determine whether the damaged vehicle is subject to any liens.

24  If the search discloses the existence of any liens, payment of

25  the claim shall be made jointly to the owner of the damaged

26  vehicle and the first lienholder of record.  The insurer is

27  shall not be subject to the requirements of this section if

28  the owner of the damaged vehicle presents to the insurer a

29  title certificate for such vehicle.

30         (2)  When making any payment on a claim for damage to

31  an automobile for a partial loss, the insurer shall have

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1998             CS/HB 1127

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  1  printed either on the loss estimate, if prepared by the

  2  insurer, or on the check or draft, the following:  "Failure to

  3  use the insurance proceeds in accordance with the security

  4  agreement, if any, could be violation of s. 812.014, Florida

  5  Statutes.  If you have any questions, contact your lending

  6  institution." However, this subsection does not apply if the

  7  insurer does not prepare the loss estimate.

  8         Section 2.  Subsection (7) of section 627.7295, Florida

  9  Statutes, is amended to read:

10         627.7295  Motor vehicle insurance contracts.--

11         (7)  A policy of private passenger motor vehicle

12  insurance or a binder for such a policy may be initially

13  issued in this state only if the insurer or agent has

14  collected from the insured an amount equal to 2 months'

15  premium.  An insurer, agent, or premium finance company may

16  not directly or indirectly take any action resulting in the

17  insured having paid from the insured's own funds an amount

18  less than the 2 months' premium required by this subsection.

19  This subsection applies without regard to whether the premium

20  is financed by a premium finance company or is paid pursuant

21  to a periodic payment plan of an insurer or an insurance

22  agent.  This subsection does not apply if an insured or member

23  of the insured's family is renewing or replacing a policy or a

24  binder for such policy written by the same insurer or a member

25  of the same insurer group.  This subsection does not apply to

26  an insurer that issues private passenger motor vehicle

27  coverage primarily to active duty or former military personnel

28  or their dependents. This subsection and subsection (4) do not

29  apply if an insured has had a policy in effect for at least 6

30  months, the insured's agent is terminated by the insurer that

31  issued the policy, and the insured obtains coverage on the

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    Florida House of Representatives - 1998             CS/HB 1127

    614-121-98






  1  policy's renewal date with a new company through the

  2  terminated agent. This subsection does not apply to payment of

  3  premiums by an employer on behalf of an employee pursuant to a

  4  payroll deduction plan.

  5         Section 3.  This act shall take effect October 1 of the

  6  year in which enacted.

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