Current through Reg. 50, No. 187; September 24, 2024
(1) Private passenger motor vehicle insurers
providing physical damage coverage, including collision or comprehensive
coverage, shall comply with Section
627.744, F.S., regarding
preinsurance inspection requirements. Certain preinsurance inspections are
excluded as prescribed by Sections
627.744(2)(a)-(l),
F.S.
(a) A preinsurance inspection is not
required if:
1. The agent/producer or insurer
is transferring a book of business from one insurer to another
insurer(s);
2. Such transfer was
not initiated or within the control of the insured; and
3. The transfer of the block of business is
documented in each policyholder's record.
(b)
1. A
reinspection is not required when an individual insured's coverage is being
transferred by an independent insurance agent to a new insurer and the agent
provides the new insurer with a copy of the inspection report completed on
behalf of the previous insurer, provided:
a.
The independent agent represents both insurers, and
b. The insured vehicle was physically
inspected by the previous insurer.
2. If the new insurer does not receive a copy
of the inspection report sixty (60) days prior to the first annual renewal
date, the insurer shall, upon renewal of the physical damage insurance, require
an inspection as set forth in this rule.
(c) If a vehicle which has been previously
inspected by an insurer transfers to another insurer under common ownership
with the original insurer, a reinspection of the vehicle will not be required.
The preinsurance inspection form, or an electronically or photographically
reproduced copy, shall be transferred to the new insurer and retained with its
policyholder records as provided in subsection (7) below.
(d) Except as to an insurer whose files and
established office procedures indicate compliance with Section
627.744, F.S., and the
provisions of this rule, an insurer shall indicate in the policyholder's file
the reason a vehicle is being exempted from the preinsurance inspection
requirements of this rule. This paragraph shall apply only to motor vehicle
policies issued on a private passenger motor vehicle garaged in the counties
listed in paragraph (1)(e).
(e) The
preinsurance inspection requirement applies to a motor vehicle policy issued on
a private passenger motor vehicle principally garaged in Duval, Palm Beach,
Broward, Dade, Orange, Hillsborough, and Pinellas counties.
(f) A reinspection is not required when a
family member transfers title to another family member and the agent or insurer
provides the transferee's insurer with a copy of the inspection report
completed on behalf of the transferor's insurer. However, if the transferee's
insurer does not receive a copy of the inspection report sixty (60) days prior
to the first annual renewal date, the insurer shall, upon renewal of the
physical damage insurance, require an inspection as set forth in this rule. If
an initial inspection was not performed, then such inspection is required if
not otherwise exempt.
(2)
"Private passenger motor vehicle" shall be defined as one which is:
(a) Owned or registered by a natural person,
or one or more related individuals resident of the same household;
and
(b) A four-wheel motor vehicle
which:
1. Is licensed for use on public
roads;
2. Has a load capacity of
1,500 pounds or less;
3. Is not
used as a public or livery conveyance for passengers; and
4. Is not rented to
others.
(3)
(a) "Private passenger motor vehicle
insurance policy" is one that insures private passenger motor vehicles as
defined in paragraphs (2)(a) and (b) above.
(b) For the purposes of this rule, a private
passenger motor vehicle insurance policy shall not include vendors single
interest nor commercial auto fleet policies covering five (5) or more
vehicles.
(4) Suspension
of insurance coverage applies only to the physical damage coverage and is
defined as a discontinuance of physical damage coverage immediately following
the thirtieth calendar day if the inspection has not been completed and until
the physical damage coverage is reinstated by completion of the inspection.
During the period of suspension there is no physical damage coverage.
(5) The inspection shall be recorded on Form
OIR-B1-507. An insurer may, however, use its own form(s) and any additional
information deemed necessary by the insurer as long as the form(s) used by each
insurer has substantially the same information as that contained in Form
OIR-B1-507. The insurer may also attach photographs of the inspected vehicle
evidencing whether there is pre-existing damage to the vehicle.
(6) The preinsurance inspection form, or an
electronically or photographically reproduced copy, shall be retained by the
insurer with the insured's policy records at the insurer's home office,
regional office, or district office for a period of three (3) years. When the
insurer is a surplus lines company, these records shall be kept in the Florida
office of the surplus lines agent for that insurer. The original signed
preinsurance inspection form shall be maintained by the insurer/surplus lines
agent and shall be made available to the Office upon request. A copy of the
inspection form, without any optional accompanying photographs, shall be made
available to the insured upon request.
(7) The preinsurance inspection form, or an
electronically or photographically reproduced copy, shall be completed by a
person or organization authorized by the insurer other than the applicant or
insured. Such person or organization may be an employee of the insurer, the
agent/producer or employee thereof, or an inspection service, including
employees thereof. The competency and trustworthiness of the person or
organization authorized by the insurer to conduct preinspections shall be the
responsibility of the insurer.
(8)
In addition to the inspection form, the preinsurance inspection shall include
at least paragraph (a), (b), or (c) as follows, which will be for the purpose
of positively identifying the vehicle to be insured:
(a) The taking of a physical imprint of the
vehicle identification number (VIN) of the motor vehicle by a representative of
the insurer other than the applicant or insured. A physical imprint is defined
as a tracing or a mold of the actual VIN label (normally located on the dash of
the motor vehicle and seen through the windshield from the outside looking into
the vehicle).
(b) The taking of a
close-up photograph of the VIN label (where the VIN label is usually located on
the dash of the vehicle) or the photographing of the Environmental Protection
Agency/Federal Certification (EPA) sticker (usually found on the operator's
side door jamb). Such close-up photograph shall be taken by a representative of
the insurer other than the applicant or insured. The photograph shall be of a
sufficient clarity and quality that the information contained on the dash VIN
label or the EPA sticker, including the VIN, is legible and easily readable.
The VIN recorded on the preinsurance inspection form shall be obtained from a
location on the vehicle other than the location being photographed.
(c) The attesting to the authenticity of the
VIN by both the insured and the insurer's representative, who shall not be the
insured. If this option is selected, each inspector shall individually observe
the VIN (usually imprinted on a label on the dash) of the vehicle and record
same on Form OIR-B1-507, or a form which contains substantially the information
on Form OIR-B1-507. Each inspector shall also individually observe and attest
to the VIN as displayed on the EPA sticker (usually affixed to the operator
side door jamb), and the VIN as recorded on the vehicle registration form. Such
attestation shall be accomplished by signing the statement appearing on the
space provided on the vehicle inspection form. If discrepancies are noted, such
as a missing VIN, a defaced VIN, or an inconsistency in the VINs, such
discrepancies shall be noted on the motor vehicle preinsurance inspection
form.
(9) An insurer may
defer an inspection for thirty (30) calendar days following the effective date
of coverage for a new policy or the actual notice to the insurer or its agent
of additional or replacement vehicle(s) to an existing policy, as permitted by
Section 627.744(6),
F.S. The insurance file shall contain information necessary to identify those
circumstances justifying the deferral.
(a)
The applicant shall be notified of the requirement for the inspection by Form
OIR-B1-505 or Form OIR-B1-508 or a form which contains substantially the
information in Form OIR-B1-505 or Form OIR-B1-508. Failure to obtain the
inspection within the time period shall result in suspension of physical damage
insurance coverage immediately following the time period, which consequences
shall be disclosed at the time of application, or by mail posted no later than
the next business day in the case of a telephonic binder, to the applicant on
Form OIR-B1-506, or a form which contains substantially the information on Form
OIR-B1-506. Such suspension shall continue until the inspection is
effected.
(b) Suspension of
coverage shall apply to all insureds, owners, and lienholders. However, where
the lienholder is a federal or state financial institution this rule shall not
limit the payment of claims in any manner.
(c)
1.
Failure of the insurer or agent to give the insured notice as required in this
rule shall not result in a suspension of coverage for the insured. The failure
of the insurer to act promptly does not relieve it of its obligation to
inspect.
2. After a suspension of
coverage, the physical damage coverage is not restored by virtue of an insurer
or agent's failure(s) to comply with this rule.
(d) A reinstatement of physical damage
coverage shall only be effective upon inspection and if due, payment by the
insured to the insurer of the adjusted premium for the physical damage coverage
in full or in accordance with the insurer's normal payment plan, at the
insurer's option.
(e) Whenever
physical damage coverage is suspended for more than fourteen (14) days, the
insurer shall make a pro rata premium adjustment (return premium or credit)
which shall be mailed to the insured no later than 45 days after the effective
date of the suspension. However, when lienholder protection continues, as
referenced in paragraph (b) above, no premium adjustment shall be
due.
(f) Whenever physical damage
coverage is suspended, the insurer shall mail to the insured, the producer of
record, and any lienholder other than a state or federal financial institution,
a Notice of Suspension of Insurance Coverage, Form OIR-B1-506, or a form which
contains substantially the information in Form OIR-B1-506, no later than the
30th calendar day after the effective date of the suspension.
(g) The insurer shall obtain a certificate of
mailing or other evidence of mailing the Notice of Suspension to the insured,
the producer/agent of record, and any lienholder other than as described in
paragraph (b) above, and shall retain the certificate or other evidence of
mailing and copy of the Notice for a period of three (3)
years.
(10)
(a) In addition to the notice requirements as
set forth in subsection (9), the insurer or agent/producer shall furnish the
applicant, at the time coverage is effected, with an up-to-date list of
inspection sites where the inspection can be conducted, provided that
inspection service is not available at the originating agent's place of
business.
(b) The list shall
include the names, addresses, and business phone numbers of persons or
organizations authorized by the insurer that are reasonably convenient to the
insurer.
(c) In the case of
telephonic binders, the location of reasonably convenient inspection sites may
be provided by telephone, provided documentation of verbal notice is contained
in the applicant's policy record.
(d) The consequences of the applicant's
failure to obtain a timely inspection shall be furnished promptly to the
applicant by providing Form OIR-B1-506, or a form which contains substantially
the information in Form OIR-B1-506. Documentation of such notice, including the
name of the person giving the notice and the identity of the site(s) provided,
shall be contained in the applicant's policy record.
(e) The insurer shall make a list of all
persons or organizations authorized by the insurer available to the Office upon
request.
(11) Inspections
required or permitted pursuant to this regulation shall be made by a person or
organization authorized by the insurer at a time and place reasonably
convenient to the applicant and should not subject the insured/applicant to an
unreasonable delay.
(12) Any
preinsurance inspection forms issued by the insurer to the applicant for
presentation to a person or organization authorized by the insurer shall not
contain the Vehicle Identification Number (VIN) of the vehicle to be
inspected.
(13) Any decision to
defer or not to defer an inspection pursuant to this regulation shall not be
based on the age, race, sex, or marital status of the applicant or the
customary operators of the vehicle, the principal place of garaging, or the
fact that a policy has been placed in the Florida Joint Underwriting
Association.
(14) The insurer or
the insured's authorized representative who performs the inspection shall
maintain a control system or office procedures reasonably designed to prevent
the use of forms to fraudulently indicate the performance of inspections which
have not in fact occurred, which may include the use of sequentially numbered
reports.
(15)
(a) The inspection report, or the relevant
data therefrom, shall be reviewed by the insurer to compare previous damage,
prior condition, options, and mileage of the motor vehicle on physical damage
claims which occur within three (3) years of the issuance of the policy
whenever:
1. The appraisal indicates prior
damage;
2. The vehicle is a total
loss or unrecovered theft; or
3.
The damage exceeds $2,000 for all claims.
(b) A copy, which may be an electronically or
photographically reproduced copy, of the inspection report, or the relevant
data therefrom, shall be utilized in the settlement of all claims referenced in
paragraph (15)(a) above.
(16) A person or organization authorized by
the insurer shall not be deemed trustworthy if there exists any conflict of
interest which may prevent him or her from conducting a thorough and accurate
inspection. It shall be a conflict of interest for a person or organization
authorized by the insurer to accept, in connection with an inspection, anything
of value from any source other than the insurer.
(17) When a private passenger automobile
insured for physical damage coverage has been in an accident or otherwise
damaged, an insurer may require that the vehicle be made available for
inspection prior to continuing physical damage coverage.
(18) Forms OIR-B1-505, "Notice of Mandatory
Pre-insurance Inspection Requirement" (7/00), OIR-B1-506, "Notice of Suspended
Insurance Coverage" (1/08), OIR-B1-507, "Florida Motor Vehicle Preinsurance
Inspection Form" (7/00), and OIR-B1-508, "Acknowledgement of Requirement for
Preinsurance Inspection" (5/08), are adopted and incorporated by
reference.
(19) Form OIR-B1-505,
Form OIR-B1-506, Form OIR-B1-507, and Form OIR-B1-508 may be obtained from:
(a) The Office's website located at
http://www.floir.com, by clicking on
search and entering the form number; or
(b) Property and Casualty Product Review, 200
East Gaines Street, Tallahassee, Florida 32399-0330, (850)
413-3146.
Rulemaking Authority 624.308(1), 627.744(5) FS. Law
Implemented 624.307(1), 627.744 FS.
New 1-23-91, Formerly 4-28.006, Amended 4-28-92, Formerly
4-167.004, Amended 9-16-08.
