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Florida Statutes, Rules & Regulations Pertinent to Personal Lines Insurance Questions and Answers 100% Accurate
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Florida Statutes, Rules & Regulations Pertinent to Personal Lines Insurance
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Florida Statutes, Rules & RegulationsPertinent to Personal Lines Insurance
Insurance Contracts - answer risk-shifting contract, legal because the owner has an
"insurable interest" in the thing being insured (you can't insure a building you don't own,
you must have a financial interest).
Renewal - answer45 days advanced written notice of the renewal premium mailed to
the 1st named insured.
Nonrenewal - answer The insurance company is limited as to reason it may non-renew,
can NOT be an Act of God; an insured may choose not to renew by withholding
payment. Non-renewal notice must state reason why policy is not to be renewed.
Residential property, requires 120 days advanced written notice. Personal auto: 1st 90
days 20 days written notice; after 90 days
Cancellation - answer Unable to cancel a personal auto policy after 90 days except
when there has been a material misstatement, a nonpayment of premium, a failure to
comply with underwriting requirements established by the insurer within 90 days of the
date of effectuation of coverage, or a substantial change in the risk covered by the
policy or when the cancellation is for all insureds under such policies for a given class of
insureds. Must give 45 days notice prior to the effective date of cancellation or
termination.
Proof of Loss - answeran official inventory of the loss. May be required by an insurance
company in exchange for payment of a claim.
Payment of Claims - answerInsurer has 90 days to pay or deny a claim unless failure to
pay is caused by factors beyond insurers control. After 90 days or 15 days after there
are no longer factors beyond insurers control interest begins to accrue from the date
insurer received notification of the claim.
Premium Financing - answerA general lines agent may make reasonable service
charges for financing insurance premium. May not exceed $3 per installment. Maximum
service charge shall not exceed $36 per year. May charge 18% simple interest per year
on unpaid balance; or average unpaid balance as billed. Interest may be billed in equal
installments.
Property - answerLine of insurance designed to cover many types of coverages and
handle risk that a person will suffer financial loss because something the person owns is
damaged or destroyed.
, Hurricane Deductible - answerOne deductible per season, may require insureds to
maintain receipts for losses within the deductible to apply to subsequent hurricane
losses. If more than one policy with same insurer, highest deductible applies to
subsequent hurricane losses. For example renewal offered with a lower deductible,
notify insured in writing lower deductible does not apply until Jan 1 of the following
calendar year. A certificate of security may be required for property that is financed.
Personal lines residential property valued at less than $500,000 hurricane deductible
cannot exceed 10% unless insured selects in writing or mortgagee/lienholder approves
a higher deductible. If separate hurricane deductible applies requires BOLDFACED 18
PT type.
Wind Mitigation/Code Issues - answerGable roofs ineligible for discount; hip roofs cut
wind and receive wind mitigation discount; roof coverings must be tested, approved and
installed to code to qualify; largest discount is for concrete decking; must use straps and
clips in accordance with code requirements. In wind-borne debris region: hurricane
shutters, impact resistant glass, impact resistant doors, impact resistant skylights must
pass large missile test and be approved to receive discount; multiple story buildings
lower 60 feet of building considered an opening unless glazing is impact-resistant glass
or protected with an impact-resistant covering meeting FBC or Miami Dade
requirements. Openings in lower 30 feet must meet large missile test upper 30 feet
must meet small missile test. Consumer will need to contract with licensed inspector
who completes the OIR-B1-1802 Uniform Mitigation Verification Inspection Form, all
licensed residential property insurance companies in Florida MUST accept this form
Catastrophic Ground Collapse (Sinkhole) - answerMust provide this coverage, may
require an inspection before endorsing sinkhole on to the policy. Insurer may restrict
catastrophic groundcover collapse to the principal building as defined in the policy.
Must have ALL of the following to make a claim under catastrophic ground cover
collapse:
1. abrupt collapse of the ground cover
2. A depression clearly visible to the naked eye
3. Structural damage to covered building including the foundation; AND
4. The insured structure is condemned and ordered to be vacated by governmental
agency authorized by law to issue the order.
Hurricane Occurrence - answerBegins when a storm is named and ends 72 hours after
the last hurricane watch or warning expires.
Fungi - answercovered under Coverage A up to $10,000 for total of all losses payable
under Section I for fungi, wet or dry rot, yeast or bacteria. Cost to remove, cost to tear
out and replace to gain access, cost of testing air to confirm absence, presence or level
of fungi, wet or dry rot, yeast or bacteria during or after removal, repair, restoration or
replacement provided only if there is a reason to believe there is the presence of fungi,
wet or dry rot, yeast or bacteria. You only have $10,000 in coverage and the insurance
company can deduct the amount the insurance company spent investigating the loss.
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