Florida Statute 627.8405 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

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627.8405 Prohibited acts; financing companies.—No premium finance company shall, in a premium finance agreement or other agreement, finance the cost of or otherwise provide for the collection or remittance of dues, assessments, fees, or other periodic payments of money for the cost of:

(1) A membership in an automobile club. The term “automobile club” means a legal entity which, in consideration of dues, assessments, or periodic payments of money, promises its members or subscribers to assist them in matters relating to the ownership, operation, use, or maintenance of a motor vehicle; however, this definition of “automobile club” does not include persons, associations, or corporations which are organized and operated solely for the purpose of conducting, sponsoring, or sanctioning motor vehicle races, exhibitions, or contests upon racetracks, or upon racecourses established and marked as such for the duration of such particular events. The words “motor vehicle” used herein have the same meaning as defined in chapter 320.

(2) An accidental death and dismemberment policy sold in combination with a personal injury protection and property damage only policy.

(3) Any product not regulated under the provisions of this insurance code.

This section also applies to premium financing by any insurance agent or insurance company under part XVI. The commission shall adopt rules to assure disclosure, at the time of sale, of coverages financed with personal injury protection and shall prescribe the form of such disclosure.

History.—ss. 604, 809(2nd), ch. 82-243; s. 79, ch. 82-386; s. 117, ch. 83-216; s. 114, ch. 92-318; s. 21, ch. 93-410; s. 3, ch. 95-424; s. 2, ch. 97-204; s. 16, ch. 2000-370; s. 1223, ch. 2003-261.

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Amendments to 627.8405

Annotations, Discussions, Cases:

Cases Citing Statute 627.8405

Total Results: 3

CAPITAL NAT. FINANCIAL v. Dept. of Ins.

690 So. 2d 1335, 1997 Fla. App. LEXIS 2137, 1997 WL 115318

District Court of Appeal of Florida | Filed: Mar 12, 1997 | Docket: 436930

Cited 2 times | Published

of Insurance ruling that Capital violated section 627.8405(1), Florida Statutes (1993). We reverse. The

Lemy v. Direct General Finance Co.

884 F. Supp. 2d 1236, 2012 U.S. Dist. LEXIS 114337, 2012 WL 3326342

District Court, M.D. Florida | Filed: Aug 14, 2012 | Docket: 65984125

Published

of Insurance Regulation (“the Office”); and Section 627.8405, which prohibits the financing of an automobile

Lemy v. Direct General Finance Co.

885 F. Supp. 2d 1265, 2012 WL 2339702, 2012 U.S. Dist. LEXIS 84507

District Court, M.D. Florida | Filed: Jun 19, 2012 | Docket: 65984240

Published

Direct General and the underwriters violated Section 627.8405, which bars the sale of a finance agreement

This Florida statute resource is curated by Graham W. Syfert, Esq., a Jacksonville, Florida personal injury and workers' compensation attorney. Attorney Syfert regularly works with Chapter 627 in the context of insurance coverage law and represents clients throughout Northeast Florida. For legal consultation, call 904-383-7448.