Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-167 - PROPERTY AND CASUALTY INSURANCE CONTRACTS
Section 69O-167.002 - Private Passenger Motor Vehicle Insurance; Completion of Underwriting Notice of Incorrect Premium, Return of Unearned Premium

(1) Pursuant to the provisions of Section 627.728, F.S., any insurer which issues a policy of private passenger motor vehicle insurance in this state shall be required to complete the underwriting of the policy and make a final determination of the correct premium for the coverage set forth in the insurance application within sixty (60) days after the effectuation of coverage. The requirements of this subsection shall not apply in the event that an incorrect premium was charged due to material misrepresentation or fraud on the part of the insured in the application for insurance. Insurers asserting a common law right of rescission or otherwise asserting rights to void insurance policies ab initio shall, within 90 days of rescinding a policy, report electronically through the Florida Office of Insurance Regulation Industry Portal at http://www.floir.com/iportal. The report shall be on Form OIR-B3-493, http://www.flrules.org/Gateway/reference.asp?No=Ref-08271, "Report of Rescinded Policy," rev. 06/2017, which is hereby adopted and incorporated by reference. The report shall be filed electronically through the Florida Office of Insurance Regulation Industry Portal at http://www.floir.com/iportal. The insurer shall retain its files on each rescinded policy for three (3) calendar years from the date of the report to the Office. Each file shall contain a copy of the initial application, a copy of the policy, copies of any claim forms filed, all documentation used by the insurer as a basis for its rescission, including the basis for any denial of coverage; and the name, business address and telephone number of any independent claims adjusting service where files may be located, if no longer in the possession of the insurer.

(2) In the event that an insurer issues a policy of private passenger motor vehicle insurance and timely determines that the policyholder has been charged an incorrect premium, the insurer shall provide notice to the policyholder as provided in Section 627.7282, F.S. Such notice shall include a period of time no less than ten (10) days and no greater than forty-five (45) days within which the policyholder has the option to pay the additional amount of premium due or to cancel the policy and demand a refund of any unearned premiums. The maximum 45-day time period shall not apply in the event the amount of the additional premium due is equal to or less than five percent of the correct premium.

(3) If the policyholder fails to timely respond to the notice referred to in subsection (2), above, the insurer shall cancel the policy as required in Section 627.7282, F.S., on a date no less than fourteen (14) days and no greater than forty-five (45) days after the notice, and return any unearned premium to the insured.