HB 0197

CS

CHAMBER ACTION

1	The Commerce Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to preinsurance inspection of private
7	passenger motor vehicles; amending s. 627.744, F.S.;
8	providing for a voluntary preinsurance inspection of
9	certain motor vehicles by an insurer; authorizing private
10	passenger motor vehicle insurance companies to require a
11	preinsurance inspection of a motor vehicle as a condition
12	of issuing physical damage coverage; deleting provisions
13	relating to required inspections; providing an effective
14	date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Section 627.744, Florida Statutes, is amended
19	to read:
20	627.744  Voluntary Required preinsurance inspection of
21	private passenger motor vehicles.--
22	(1)  A private passenger motor vehicle insurance company
23	may require a preinsurance inspection of any motor vehicle to be
24	covered by the company as part of the company's fraud prevention
25	program and as a condition of issuance of policy providing
26	physical damage coverage for the motor vehicle, including
27	collision or comprehensive coverage, may not be issued in this
28	state unless the insurer has inspected the motor vehicle in
29	accordance with this section.
30	(2)  This section does not apply:
31	(a)  To a policy for a policyholder who has been insured
32	for 2 years or longer, without interruption, under a private
33	passenger motor vehicle policy which provides physical damage
34	coverage, if the agent of the insurer verifies the previous
35	coverage.
36	(b)  To a new, unused motor vehicle purchased from a
37	licensed motor vehicle dealer or leasing company, if the insurer
38	is provided with:
39	1.  A bill of sale or buyer's order which contains a full
40	description of the motor vehicle, including all options and
41	accessories; or
42	2.  A copy of the title which establishes transfer of
43	ownership from the dealer or leasing company to the customer and
44	a copy of the window sticker or the dealer invoice showing the
45	itemized options and equipment and the total retail price of the
46	vehicle.
47
48	For the purposes of this paragraph, the physical damage coverage
49	on the motor vehicle may not be suspended during the term of the
50	policy due to the applicant's failure to provide the required
51	documents. However, payment of a claim is conditioned upon the
52	receipt by the insurer of the required documents, and no
53	physical damage loss occurring after the effective date of the
54	coverage is payable until the documents are provided to the
55	insurer.
56	(c)  To a temporary substitute motor vehicle.
57	(d)  To a motor vehicle which is leased for less than 6
58	months, if the insurer receives the lease or rental agreement
59	containing a description of the leased motor vehicle, including
60	its condition. Payment of a physical damage claim is conditioned
61	upon receipt of the lease or rental agreement.
62	(e)  To a vehicle that is 10 years old or older, as
63	determined by reference to the model year.
64	(f)  To any renewal policy.
65	(g)  To a motor vehicle policy issued in a county with a
66	1988 estimated population of less than 500,000.
67	(h)  To any other vehicle or policy exempted by rule of the
68	commission. The commission may base a rule under this paragraph
69	only on a determination that the likelihood of a fraudulent
70	physical damage claim is remote or that the inspection would
71	cause a serious hardship to the insurer or the applicant.
72	(i)  When the insurer's authorized inspection service has
73	no inspection facility either in the municipality in which the
74	automobile is principally garaged or within 10 miles of such
75	municipality.
76	(j)  When the insured vehicle is insured under a
77	commercially rated policy that insures five or more vehicles.
78	(k)  When an insurance producer is transferring a book of
79	business from one insurer to another.
80	(l)  When an individual insured's coverage is being
81	transferred and initiated by a producer to a new insurer.
82	(3)  This subsection does not prohibit an insurer from
83	requiring a preinsurance inspection of any motor vehicle as a
84	condition of issuance of physical damage coverage.
85	(4)  The inspection required by this section shall be
86	provided by the insurer or by a person or organization
87	authorized by the insurer, notwithstanding the Florida Deceptive
88	and Unfair Trade Practices Act. The applicant may be required to
89	pay the cost of the inspection, not to exceed $5. The inspection
90	shall be recorded on a form prescribed by the commission, and
91	the form or a copy shall be retained by the insurer with its
92	policy records for the insured. The insurer shall provide a copy
93	of the form to the insured upon request. Any inspection fee paid
94	directly by the applicant may not be considered part of the
95	premium. However, an insurer that provides the inspection at no
96	cost to the applicant may include the expense of the inspection
97	within a rate filing.
98	(5)  The inspection shall include at least the following:
99	(a)  Taking a physical imprint of the vehicle
100	identification number of the vehicle or otherwise recording the
101	vehicle identification number in a manner prescribed by the
102	commission.
103	(b)  Recording the presence of accessories required by the
104	commission to be recorded.
105	(c)  Recording the locations of and a description of
106	existing damage to the vehicle.
107	(6)  An insurer may defer an inspection for 30 calendar
108	days following the effective date of coverage for a new policy,
109	but not for a renewal policy, and for additional or replacement
110	vehicles to an existing policy, if an inspection at the time of
111	the request for coverage would create a serious inconvenience
112	for the applicant and such hardship is documented in the
113	insured's policy record.
114	(2)(7)  The commission may, by rule, establish such
115	procedures and notice requirements that it finds necessary to
116	implement this section.
117	Section 2.  This act shall take effect upon becoming a law.

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