Senate Bill 2338

    Florida Senate - 1998                                  SB 2338

    By Senator Forman





    32-21B-98                                       See CS/HB 1127

  1                      A bill to be entitled

  2         An act relating to motor vehicle insurance;

  3         amending s. 627.743, F.S.; requiring insurers

  4         to search for liens before making payment on

  5         certain claims; providing an exception to joint

  6         payment requirements under certain

  7         circumstances; providing an effective date.

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

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11         Section 1.  Section 627.743, Florida Statutes, is

12  amended to read:

13         627.743  Payment of third-party claims.--Before making

14  any payment on a first-party or third-party claim for damage

15  to an automobile for a partial or total loss, if the damage

16  exceeds $500 regardless of amount, which automobile is owned

17  by a person who is not named as an insured in the policy under

18  which payment is made, the insurer shall first cause a search

19  of the records of the Department of Highway Safety and Motor

20  Vehicles to be made in order to determine whether the damaged

21  vehicle is subject to any liens.  If the search discloses the

22  existence of any liens, payment of the claim shall be made

23  jointly to the owner of the damaged vehicle and the first

24  lienholder of record.  The insurer shall not be subject to the

25  requirements of this section if the lienholder is located or

26  licensed in this state owner of the damaged vehicle presents

27  to the insurer a title certificate for such vehicle.

28         Section 2.  This act shall take effect October 1, 1998.

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






    Florida Senate - 1998                                  SB 2338
    32-21B-98                                       See CS/HB 1127




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  2                          HOUSE SUMMARY

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      Requires insurers to search for the existence of liens on
  4    any claim for automobile damage exceeding $500.  Exempts
      insurers from paying jointly to an owner and first
  5    lienholder if the lienholder is located or licensed in
      this state. See bill for details.
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