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Florida Administrative Code (Last Updated: November 11, 2024) |
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69. Department of Financial Services |
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69O. OIR – Insurance Regulation |
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69O-196. Premium Finance Companies |
1Section 2627.842, F.S., 4provides 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:
47(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.
121(2) Each payment when received shall be applied first to the installment payment due for that month and last to any miscellaneous charges.
144(3) Each payment is considered to stand alone and is applied when received according to the guidelines of this section.
164Specific Authority 166624.308 FS. 168Law Implemented 170624.307(1), 171627.842, 172627.848 FS. 174History–New 7-27-95, Formerly 4-196.028.
