69O-167.004: Required Preinsurance Inspection of Private Passenger Motor Vehicles
PURPOSE AND EFFECT: To adopt amendments to the rule to reflect legislative changes and update forms.
SUMMARY: Preinsurance Inspection of Private Passenger Motor Vehicles.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 624.308(1), 627.744(5) FS.
LAW IMPLEMENTED: 624.307(1), 627.744 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: February 26, 2008, 9:30 a.m.
PLACE: 142 Larson Building, 200 East Gaines Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Brian Bogner, P&C Product Review, Office of Insurance Regulation, E-mail brian.bogner@fldfs.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Brian Bogner, P&C Product Review, Office of Insurance Regulation, E-mail brian.bogner@fldfs.com
THE FULL TEXT OF THE PROPOSED RULE IS:
69O-167.004 Required Preinsurance Inspection of Private Passenger Motor Vehicles.
(1) Private passenger motor vehicle insurers providing physical damage coverage, including collision or comprehensive coverage, shall comply with Section 627.744, Florida Statutes, regarding preinsurance inspection requirements. Certain preinsurance inspections are excluded as prescribed by Sections 627.744(2)(a)-(l)(h), Florida Statutes.
(a) through (f) No change.
(2) through (3) No change.
(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 seventh 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 performed at no cost or charge to the applicant.
(5)(6) 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)(7) 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
(7)(8) 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)(9) 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)(10) An insurer may defer an inspection for thirty (30) seven (7) 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, if an inspection at the time of the request for coverage would create a serious inconvenience for the applicant. The insurance file shall contain information necessary to identify those circumstances resulting in serious inconvenience.
(a) through (g) No change.
(10)(11)(a) In addition to the notice requirements as set forth in subsection (10), 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)(12) 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)(13) 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)(14) 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 FJUA.
(14)(15) 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)(16)(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 (16)(a) above.
(16)(17) 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)(18) 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)(19) Forms OIR-B1-505, “Notice of Mandatory Pre-insurance Inspection Requirement” (07/00) (7/91), OIR-B1-506, “Notice of Suspended Insurance Coverage” (07/00) (7/91), OIR-B1-507, “Florida Motor Vehicle Preinsurance Inspection Form” (01/2008) (10/90), and OIR-B1-508, “Acknowledgement of Preinsurance Inspection” (07/00) (7/91), are adopted and incorporated by reference and shall become effective upon adoption of this rule.
(19)(20) 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 https://www.floir.com; or
(b) by writing the Bureau of Property and Casualty Product Review Forms and Market Conduct Review, Division of Insurer Services, 00, (850)413-3146.
Specific Authority 624.308(1), 627.744(5) FS. Law Implemented 624.307(1), 627.744 FS. History–New 1-23-91, Formerly 4-28.006, Amended 4-28-92, Formerly 4-167.004, Amended_________.