Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-196 - PREMIUM FINANCE COMPANIES
Section 69O-196.028 - Cancellation of Insurance Contract Upon Default
Current through Reg. 50, No. 187; September 24, 2024
Section 627. 842, F.S., provides that the only acceptable grounds for cancelling an insured's insurance policy is "nonpayment of premium." Therefore, no insured's policy is to be cancelled for nonpayment of miscellaneous charges. To further clarify the Office's position in this matter, the following guidelines are provided:
(1) If the insured makes his regularly scheduled premium installment payment in full, but fails to include a late charge, or any other miscellaneous fee, the premium finance company must accept the payment and apply it to the installment payment due. The premium finance company may not cancel for nonpayment of the late charge. However, it may notify the insured in writing that there is an outstanding late charge and demand payment of same.
(2) Each payment when received shall be applied first to the installment payment due for that month and last to any miscellaneous charges.
(3) Each payment is considered to stand alone and is applied when received according to the guidelines of this section.
Rulemaking Authority 624.308(1), 627.848(1) FS. Law Implemented 624.307(1), 627.842, 627.848 FS.
New 7-27-95, Formerly 4-196.028.
