(1) Pursuant to the provisions of Florida Statutes § 627.728, 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 The report shall be on Form OIR-B3-493, http://www.flrules.org/Gateway/reference.asp?No=Ref-08271, “”Report of Rescinded Policy,”” rev. 06/2017, which is hereby adopted and incorporated by reference.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 The insurer shall retain its files on each rescinded policy for three (3) calendar years from the date of the report to the Office.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.

Terms Used In Florida Regulations 69O-167.002

  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Fraud: Intentional deception resulting in injury to another.
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
    (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 Florida Statutes § 627.7282 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 Florida Statutes § 627.7282, 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.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307(1), 624.424, 626.9541(1)(o)3.a., 627.420, 627.421, 627.728, 627.7282 FS. History-New 7-23-88, Amended 9-18-90, Formerly 4-28.005, 4-167.002, Amended 7-30-17.