HB 915

1	A bill to be entitled
2	An act relating to required preinsurance inspections of
3	private passenger motor vehicles; amending s. 627.744,
4	F.S.; deleting an exception from application to motor
5	vehicle policies issued in certain counties; requiring
6	that insurers have access to inspection information and
7	images; requiring taking color images of a vehicle and the
8	vehicle identification number; providing a definition;
9	providing for suspension of physical damage coverage under
10	certain circumstances; providing requirements of insurers
11	suspending physical damage coverage; requiring return of
12	premium; providing requirements for reinstatement of such
13	coverage; providing an effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Section 627.744, Florida Statutes, is amended
18	to read:
19	627.744  Required preinsurance inspection of private
20	passenger motor vehicles.--
21	(1)  A private passenger motor vehicle insurance policy
22	providing physical damage coverage, including collision or
23	comprehensive coverage, may not be issued in this state unless
24	the insurer has inspected the motor vehicle in accordance with
25	this section.
26	(2)  This section does not apply:
27	(a)  To a policy for a policyholder who has been insured
28	for 2 years or longer, without interruption, under a private
29	passenger motor vehicle policy which provides physical damage
30	coverage, if the agent of the insurer verifies the previous
31	coverage.
32	(b)  To a new, unused motor vehicle purchased from a
33	licensed motor vehicle dealer or leasing company, if the insurer
34	is provided with:
35	1.  A bill of sale or buyer's order which contains a full
36	description of the motor vehicle, including all options and
37	accessories; or
38	2.  A copy of the title which establishes transfer of
39	ownership from the dealer or leasing company to the customer and
40	a copy of the window sticker or the dealer invoice showing the
41	itemized options and equipment and the total retail price of the
42	vehicle.
43
44	For the purposes of this paragraph, the physical damage coverage
45	on the motor vehicle may not be suspended during the term of the
46	policy due to the applicant's failure to provide the required
47	documents. However, payment of a claim is conditioned upon the
48	receipt by the insurer of the required documents, and no
49	physical damage loss occurring after the effective date of the
50	coverage is payable until the documents are provided to the
51	insurer.
52	(c)  To a temporary substitute motor vehicle.
53	(d)  To a motor vehicle which is leased for less than 6
54	months, if the insurer receives the lease or rental agreement
55	containing a description of the leased motor vehicle, including
56	its condition. Payment of a physical damage claim is conditioned
57	upon receipt of the lease or rental agreement.
58	(e)  To a vehicle that is 10 years old or older, as
59	determined by reference to the model year.
60	(f)  To any renewal policy.
61	(g)  To a motor vehicle policy issued in a county with a
62	1988 estimated population of less than 500,000.
63	(g)(h)  To any other vehicle or policy exempted by rule of
64	the commission. The commission may base a rule under this
65	paragraph only on a determination that the likelihood of a
66	fraudulent physical damage claim is remote or that the
67	inspection would cause a serious hardship to the insurer or the
68	applicant.
69	(h)(i)  When the insurer's authorized inspection service
70	has no inspection facility either in the municipality in which
71	the automobile is principally garaged or within 10 miles of such
72	municipality.
73	(i)(j)  When the insured vehicle is insured under a
74	commercially rated policy that insures five or more vehicles.
75	(j)(k)  When an insurance producer is transferring a book
76	of business from one insurer to another.
77	(k)(l)  When an individual insured's coverage is being
78	transferred and initiated by a producer to a new insurer.
79	(3)  This subsection does not prohibit an insurer from
80	requiring a preinsurance inspection of any motor vehicle as a
81	condition of issuance of physical damage coverage.
82	(4)  The inspection required by this section shall be
83	provided by the insurer or by a person or organization
84	authorized by the insurer. The applicant may be required to pay
85	the cost of the inspection, not to exceed $5. The inspection
86	shall be recorded on a form prescribed by the commission. The
87	insurer shall have direct and timely access via the Internet to
88	the inspection form and the images taken pursuant to subsection
89	(5) or retain, and the form or a copy of the form shall be
90	retained by the insurer with its policy records for the insured.
91	The insurer shall provide a copy of the form to the insured upon
92	request. Any inspection fee paid directly by the applicant may
93	not be considered part of the premium. However, an insurer that
94	provides the inspection at no cost to the applicant may include
95	the expense of the inspection within a rate filing.
96	(5)  The inspection shall include at least the following:
97	(a)  Taking two color images at oblique angles, clearly
98	showing all four sides of the vehicle and any observable prior
99	damage, and taking one color image of the Motor Vehicle Safety
100	Standard label, including a physical imprint of the vehicle
101	identification number of the vehicle or otherwise recording the
102	vehicle identification number in a manner prescribed by the
103	commission. The term "color image" means any acceptable
104	technology producing a clear visual image in color, including,
105	but not limited to, an instant-type photograph, a film
106	photograph, or a digital photograph or other digital imaging
107	process that may be accessed, stored, and retrieved via the
108	Internet.
109	(b)  Recording the presence of accessories required by the
110	commission to be recorded.
111	(c)  Recording the locations of and a description of
112	existing damage to the vehicle.
113	(6)  An insurer may defer an inspection for 30 calendar
114	days following the effective date of coverage for a new policy,
115	but not for a renewal policy, and for additional or replacement
116	vehicles to an existing policy, if an inspection at the time of
117	the request for coverage would create a serious inconvenience
118	for the applicant and such hardship is documented in the
119	insured's policy record.
120	(7)(a)  Notwithstanding subsection (6), the physical damage
121	coverage, including collision and comprehensive, for which
122	preinsurance inspection is required under this section shall be
123	suspended if the preinsurance inspection is not completed within
124	10 business days after the effective date of the coverage.
125	Suspension of coverage shall apply to all insureds, owners, and
126	lienholders.
127	(b)  Whenever physical damage coverage, including collision
128	and comprehensive, is suspended, the insurer shall:
129	1.  No later than the 30th calendar day after the effective
130	date of the suspension, mail to the insured, the producer of
131	record, and any lienholders of record a notice of suspension of
132	physical damage coverage.
133	2.  Obtain a certificate of mailing or other evidence of
134	mailing of the notice of suspension to the insured and shall
135	retain the certificate and copy of the notice with its policy
136	records for the insured.
137	3.  Make a pro rata premium adjustment by premium refund or
138	credit whenever there is a suspension of physical damage
139	coverage for more than 10 days. A refund of premium, if
140	applicable, shall be sent to the insured within 45 days after
141	the effective date of suspension.
142	(c)  A reinstatement of physical damage coverage shall be
143	effective only upon inspection and payment by the insured to the
144	insurer of the adjusted premium for the physical damage coverage
145	in full or in accordance with the insurer's normal payment plan.
146	Any such reinstatement shall be effective at the time of
147	inspection.
148	(8)(7)  The commission may, by rule, establish such
149	procedures and notice requirements that it finds necessary to
150	implement this section.
151	Section 2.  This act shall take effect October 1, 2006.

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