Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 420
Barcode 710386
CHAMBER ACTION
Senate House
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1 Comm: RE .
04/23/2006 01:51 PM .
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11 The Committee on Banking and Insurance (Baker) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 627.744, Florida Statutes, is
19 amended to read:
20 627.744 Voluntary Required preinsurance inspection of
21 private passenger motor vehicles.--
22 (1) A private passenger motor vehicle insurance
23 company may require a preinsurance inspection of any motor
24 vehicle to be covered by the company as part of the company's
25 fraud prevention program and as a condition of issuance of
26 policy providing physical damage coverage for the motor
27 vehicle, including collision or comprehensive coverage, may
28 not be issued in this state unless the insurer has inspected
29 the motor vehicle in accordance with this section.
30 (2) This section does not apply:
31 (a) To a policy for a policyholder who has been
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 420
Barcode 710386
1 insured for 2 years or longer, without interruption, under a
2 private passenger motor vehicle policy which provides physical
3 damage coverage, if the agent of the insurer verifies the
4 previous coverage.
5 (b) To a new, unused motor vehicle purchased from a
6 licensed motor vehicle dealer or leasing company, if the
7 insurer is provided with:
8 1. A bill of sale or buyer's order which contains a
9 full description of the motor vehicle, including all options
10 and accessories; or
11 2. A copy of the title which establishes transfer of
12 ownership from the dealer or leasing company to the customer
13 and a copy of the window sticker or the dealer invoice showing
14 the itemized options and equipment and the total retail price
15 of the vehicle.
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17 For the purposes of this paragraph, the physical damage
18 coverage on the motor vehicle may not be suspended during the
19 term of the policy due to the applicant's failure to provide
20 the required documents. However, payment of a claim is
21 conditioned upon the receipt by the insurer of the required
22 documents, and no physical damage loss occurring after the
23 effective date of the coverage is payable until the documents
24 are provided to the insurer.
25 (c) To a temporary substitute motor vehicle.
26 (d) To a motor vehicle which is leased for less than 6
27 months, if the insurer receives the lease or rental agreement
28 containing a description of the leased motor vehicle,
29 including its condition. Payment of a physical damage claim is
30 conditioned upon receipt of the lease or rental agreement.
31 (e) To a vehicle that is 10 years old or older, as
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 420
Barcode 710386
1 determined by reference to the model year.
2 (f) To any renewal policy.
3 (g) To a motor vehicle policy issued in a county with
4 a 1988 estimated population of less than 500,000.
5 (h) To any other vehicle or policy exempted by rule of
6 the commission. The commission may base a rule under this
7 paragraph only on a determination that the likelihood of a
8 fraudulent physical damage claim is remote or that the
9 inspection would cause a serious hardship to the insurer or
10 the applicant.
11 (i) When the insurer's authorized inspection service
12 has no inspection facility either in the municipality in which
13 the automobile is principally garaged or within 10 miles of
14 such municipality.
15 (j) When the insured vehicle is insured under a
16 commercially rated policy that insures five or more vehicles.
17 (k) When an insurance producer is transferring a book
18 of business from one insurer to another.
19 (l) When an individual insured's coverage is being
20 transferred and initiated by a producer to a new insurer.
21 (3) This subsection does not prohibit an insurer from
22 requiring a preinsurance inspection of any motor vehicle as a
23 condition of issuance of physical damage coverage.
24 (4) The inspection required by this section shall be
25 provided by the insurer or by a person or organization
26 authorized by the insurer, notwithstanding the Florida
27 Deceptive and Unfair Trade Practices Act. The applicant may be
28 required to pay the cost of the inspection, not to exceed $5.
29 The inspection shall be recorded on a form prescribed by the
30 commission, and the form or a copy shall be retained by the
31 insurer with its policy records for the insured. The insurer
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 420
Barcode 710386
1 shall provide a copy of the form to the insured upon request.
2 Any inspection fee paid directly by the applicant may not be
3 considered part of the premium. However, an insurer that
4 provides the inspection at no cost to the applicant may
5 include the expense of the inspection within a rate filing.
6 (5) The inspection shall include at least the
7 following:
8 (a) Taking a physical imprint of the vehicle
9 identification number of the vehicle or otherwise recording
10 the vehicle identification number in a manner prescribed by
11 the commission.
12 (b) Recording the presence of accessories required by
13 the commission to be recorded.
14 (c) Recording the locations of and a description of
15 existing damage to the vehicle.
16 (6) An insurer may defer an inspection for 30 calendar
17 days following the effective date of coverage for a new
18 policy, but not for a renewal policy, and for additional or
19 replacement vehicles to an existing policy, if an inspection
20 at the time of the request for coverage would create a serious
21 inconvenience for the applicant and such hardship is
22 documented in the insured's policy record.
23 (2)(7) The commission may, by rule, establish such
24 procedures and notice requirements that it finds necessary to
25 implement this section.
26 Section 2. This act shall take effect upon becoming a
27 law.
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30 ================ T I T L E A M E N D M E N T ===============
31 And the title is amended as follows:
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 420
Barcode 710386
1 Delete everything before the enacting clause
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3 and insert:
4 A bill to be entitled
5 An act relating to preinsurance inspection of
6 private passenger motor vehicles; amending s.
7 627.744, F.S.; providing for a voluntary
8 preinsurance inspection of certain motor
9 vehicles by an insurer; authorizing private
10 passenger motor vehicle insurance companies to
11 require a preinsurance inspection of a motor
12 vehicle as a condition of issuing physical
13 damage coverage; deleting provisions relating
14 to required inspections; providing an effective
15 date.
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