Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1012
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/26/2017           .                                

       The Committee on Appropriations (Brandes) recommended the
    1         Senate Amendment to Amendment (167518) (with title
    2  amendment)
    4         Between lines 566 and 567
    5  insert:
    6         Section 11. Effective January 1, 2019, section 627.744,
    7  Florida Statutes, is amended to read:
    8         627.744 Required Preinsurance inspection of private
    9  passenger motor vehicles.—
   10         (1) A private passenger motor vehicle insurance policy
   11  providing physical damage coverage, including collision or
   12  comprehensive coverage, may not be issued in this state unless
   13  the insurer has inspected the motor vehicle in accordance with
   14  this section.
   15         (2) This section does not apply:
   16         (a) To a policy for a policyholder who has been insured for
   17  2 years or longer, without interruption, under a private
   18  passenger motor vehicle policy that provides physical damage
   19  coverage for any vehicle if the agent of the insurer verifies
   20  the previous coverage.
   21         (b) To a new, unused motor vehicle purchased or leased from
   22  a licensed motor vehicle dealer or leasing company. The insurer
   23  may require:
   24         1. A bill of sale, buyer’s order, or lease agreement that
   25  contains a full description of the motor vehicle; or
   26         2. A copy of the title or registration that establishes
   27  transfer of ownership from the dealer or leasing company to the
   28  customer and a copy of the window sticker.
   30  For the purposes of this paragraph, the physical damage coverage
   31  on the motor vehicle may not be suspended during the term of the
   32  policy due to the applicant’s failure to provide or the
   33  insurer’s option not to require the documents. However, if the
   34  insurer requires a document under this paragraph at the time the
   35  policy is issued, payment of a claim may be conditioned upon the
   36  receipt by the insurer of the required documents, and no
   37  physical damage loss occurring after the effective date of the
   38  coverage may be payable until the documents are provided to the
   39  insurer.
   40         (c) To a temporary substitute motor vehicle.
   41         (d) To a motor vehicle which is leased for less than 6
   42  months, if the insurer receives the lease or rental agreement
   43  containing a description of the leased motor vehicle, including
   44  its condition. Payment of a physical damage claim is conditioned
   45  upon receipt of the lease or rental agreement.
   46         (e) To a vehicle that is 10 years old or older, as
   47  determined by reference to the model year.
   48         (f) To any renewal policy.
   49         (g) To a motor vehicle policy issued in a county with a
   50  1988 estimated population of less than 500,000.
   51         (h) To any other vehicle or policy exempted by rule of the
   52  commission. The commission may base a rule under this paragraph
   53  only on a determination that the likelihood of a fraudulent
   54  physical damage claim is remote or that the inspection would
   55  cause a serious hardship to the insurer or the applicant.
   56         (i) When the insurer’s authorized inspection service has no
   57  inspection facility either in the municipality in which the
   58  automobile is principally garaged or within 10 miles of such
   59  municipality.
   60         (j) When the insured vehicle is insured under a
   61  commercially rated policy that insures five or more vehicles.
   62         (k) When an insurance producer is transferring a book of
   63  business from one insurer to another.
   64         (l) When an individual insured’s coverage is being
   65  transferred and initiated by a producer to a new insurer.
   66         (3) This subsection does not prohibit an insurer from
   67  requiring a preinsurance inspection of any motor vehicle as a
   68  condition of issuance of physical damage coverage.
   69         (3)(4) The inspection required by this section shall be
   70  provided by the insurer or by a person or organization
   71  authorized by the insurer. The applicant may be required to pay
   72  the cost of the inspection, not to exceed $5. The inspection
   73  shall be recorded on a form prescribed by the commission, and
   74  the form or a copy shall be retained by the insurer with its
   75  policy records for the insured. The insurer shall provide a copy
   76  of the form to the insured upon request. Any inspection fee paid
   77  directly by the applicant may not be considered part of the
   78  premium. However, an insurer that provides the inspection at no
   79  cost to the applicant may include the expense of the inspection
   80  within a rate filing.
   81         (4)(5) The inspection shall include at least the following:
   82         (a) Taking a physical imprint of the vehicle identification
   83  number of the vehicle or otherwise recording the vehicle
   84  identification number in a manner prescribed by the commission.
   85         (b) Recording the presence of accessories required by the
   86  commission to be recorded.
   87         (c) Recording the locations of and a description of
   88  existing damage to the vehicle.
   89         (5)(6) An insurer may defer an inspection for 30 calendar
   90  days following the effective date of coverage for a new policy,
   91  but not for a renewal policy, and for additional or replacement
   92  vehicles to an existing policy, if an inspection at the time of
   93  the request for coverage would create a serious inconvenience
   94  for the applicant and such hardship is documented in the
   95  insured’s policy record.
   96         (6)(7) The commission may, by rule, establish such
   97  procedures and notice requirements that it finds necessary to
   98  implement this section.
   99         (7)Notwithstanding any other provision of this section, an
  100  insurer may opt out of the inspection requirements of this
  101  section. An insurer opting out of the inspection must file a
  102  manual rule with the office indicating that the insurer will not
  103  participate in the inspection program under this section. An
  104  insurer that files such a manual rule with the office may
  105  establish its own preinsurance inspection requirements as a
  106  condition to issuing a private passenger motor vehicle insurance
  107  policy. The insurer’s preinsurance inspection requirements must
  108  be included in the manual rule filed with the office. An insurer
  109  opting out of the inspection requirements of this section may
  110  not require an applicant to pay for the cost of an inspection.
  111         (8) The Division of Insurance Fraud of the Department of
  112  Financial Services shall provide a report of data from the
  113  required preinsurance inspection of motor vehicles to the
  114  Governor, the President of the Senate, and the Speaker of the
  115  House of Representatives by December 1, 2016.
  116         (a) The data must include, but need not be limited to:
  117         1. A written estimate of the total cost incurred by
  118  insurers and policyholders in order to comply with the
  119  inspections.
  120         2. A written estimate of the total cost incurred by
  121  insurers to have their motor vehicles inspected.
  122         3. Documentation regarding the total premium savings for
  123  policyholders as a result of the inspections.
  124         4. Documentation of the total number of inspected motor
  125  vehicles that had a preexisting condition.
  126         5. Documentation regarding the potential fraud in motor
  127  vehicle claims incurred within the first 125 days after issuance
  128  of a new policy.
  129         6. Documentation of the total number of referrals of
  130  fraudulent acts to the National Insurance Crime Bureau by
  131  preinsurance inspectors during the past 5 years.
  132         (b) The Legislature may use the report data in determining
  133  the future public necessity for this section.
  135  ================= T I T L E  A M E N D M E N T ================
  136  And the title is amended as follows:
  137         Delete line 656
  138  and insert:
  139         statements to include contact information; amending s.
  140         627.744, F.S.; deleting a provision that provides
  141         construction; authorizing insurers to opt out of the
  142         preinsurance inspection requirements for private
  143         passenger motor vehicles; requiring insurers opting
  144         out to file a certain manual rule with the Office of
  145         Insurance Regulation; authorizing such insurers to
  146         establish their own preinsurance inspection
  147         requirements, which must be included in the filed
  148         manual rule; prohibiting such insurers from requiring
  149         applicants to pay for the cost of inspections;
  150         deleting an obsolete provision; amending s.