Florida Statute 627.848 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXVII
INSURANCE

Chapter 627
INSURANCE RATES AND CONTRACTS

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F.S. 627.848

627.848 Cancellation of insurance contract upon default.—

(1) When a premium finance agreement contains a power of attorney or other authority enabling the premium finance company to cancel any insurance contract listed in the agreement, the insurance contract shall not be canceled unless cancellation is in accordance with the following provisions:

(a)1. Not less than 10 days’ written notice shall be mailed to each insured shown on the premium finance agreement of the intent of the premium finance company to cancel her or his insurance contract unless the defaulted installment payment is received within 10 days.

2. After expiration of such period, the premium finance company shall mail to the insurer a request for cancellation, specifying the effective date of cancellation and the unpaid premium balance due under the finance contract, and shall mail a copy thereof to the insured at her or his last known address as shown on the premium finance agreement.

(b) Every notice of cancellation shall include, in type or print of which its face shall not be smaller than 12 points, a statement that, if the insurance contract or contracts provide motor vehicle liability insurance required by the financial responsibility law, proof of financial responsibility is required to be maintained continuously for a period of 3 years, pursuant to chapter 324, and the operation of a vehicle without such financial responsibility is unlawful.

(c) Upon receipt of a copy of the cancellation notice by the insurer or insurers, the insurance contract shall be canceled as of the date specified in the cancellation notice with the same force and effect as if the notice of cancellation had been submitted by the insured herself or himself, whether or not the premium finance company has complied with the notice requirement of this subsection, without requiring any further notice to the insured or the return of the insurance contract.

(d) All statutory, regulatory, and contractual restrictions providing that the insured may not cancel her or his insurance contract unless she or he or the insurer first satisfies such restrictions by giving a prescribed notice to a governmental agency, the insurance carrier, a mortgagee, an individual, or a person designated to receive such notice for such governmental agency, insurance carrier, or individual shall apply when cancellation is effected under the provisions of this section. The insurer, in accordance with such prescribed notice when it is required to give such notice in behalf of itself or the insured, shall give notice to such governmental agency, person, mortgagee, or individual; and it shall determine and calculate the effective date of cancellation from the day it receives the copy of the notice of cancellation from the premium finance company.

(e) Whenever a financed insurance contract is canceled, the insurer shall, within 30 days of the cancellation date, return the unpaid balance due under the finance contract, up to the gross amount available upon the cancellation of the policy, to the premium finance company and any remaining unearned premium to the agent or the insured, or both, for the benefit of the insured or insureds. The insurer shall, within 30 days of the cancellation date, notify the insured and the agent of the amount of unearned premium returned to the premium finance company and the amount of unearned commission held by the agent. The premium finance company shall, within 15 days after the account has been overpaid, either refund to the insured for the insured’s benefit any refund due on his or her account or, if the refund is sent or credited to the agent, return or credit to the agent the amount of the overpayment and notify the insured of the refunded amount. Within 15 days of receipt of notification from the premium finance company, the agent shall return such amount including any unearned commission to the insured or with the written approval of the insured apply such amount to the purchase of other insurance products regulated by the office. The commission may adopt rules necessary to implement the provisions of this subsection.

(f) If an insurance contract is canceled by an insurer upon the receipt of a copy of the cancellation notice from a premium finance company, and if such premium finance company has failed to provide the notice required by this subsection, the insured shall have a cause of action against the premium finance company for damages caused by such failure to provide notice.

(2) Any court of this state rendering or affirming a judgment or decree against a premium finance company and in favor of any named or omnibus insured or beneficiary arising out of a wrongful or improper cancellation of an insurance policy by such premium finance company shall award reasonable attorney’s fees to the insured or beneficiary.

(3) The commission shall adopt a standard cancellation notice for use by premium finance companies in canceling insurance policies. The commission shall specify the color of the notice so as to promote usability and standardization.

History.—s. 1, ch. 63-16; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, 6, ch. 80-363; ss. 2, 3, ch. 81-318; ss. 611, 612, 809(2nd), ch. 82-243; s. 79, ch. 82-386; s. 23, ch. 83-288; s. 114, ch. 92-318; s. 22, ch. 93-410; s. 11, ch. 96-377; s. 1739, ch. 97-102; s. 3, ch. 97-204; s. 35, ch. 99-3; s. 17, ch. 2000-370; s. 1224, ch. 2003-261; s. 17, ch. 2004-370; s. 162, ch. 2004-390.

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Amendments to 627.848

Arrestable Offenses / Crimes under Fla. Stat. 627.848

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 627.848.

Annotations, Discussions, Cases:

Cases Citing Statute 627.848

Total Results: 20

QBE Insurance Corp. v. Chalfonte Condominium Apartment Ass'n

Court: Supreme Court of Florida | Date Filed: 2012-05-31

Citation: 94 So. 3d 541, 37 Fla. L. Weekly Supp. 395, 2012 WL 1947863, 2012 Fla. LEXIS 1063

Snippet: fully comply with the requirements of section 627.848(3), Florida Statutes (1993). That statute required

Puritan Budget Plan, Inc. v. Amstar Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2007-09-05

Citation: 964 So. 2d 769, 2007 Fla. App. LEXIS 13846

Snippet: where premium financing is involved is section 627.848, and it provides in subsection (l)(e): (e) Whenever

Miller v. Scottsdale Ins. Co.

Court: Supreme Court of Florida | Date Filed: 2006-05-18

Citation: 932 So. 2d 1028, 31 Fla. L. Weekly Supp. 310, 2006 Fla. LEXIS 891, 2006 WL 1375241

Snippet: Circuit certified the following question: WHETHER § 627.848, FLA. STAT. (2002), CONTEMPLATES A SINGLE DATE

Smith v. Foremost Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 2004-09-10

Citation: 884 So. 2d 341, 2004 WL 2008227

Snippet: financing company as defined by part XV. Section 627.848(1)(e) of part XV sets forth the procedure to follow

Southern Group Indem., Inc. v. Cullen

Court: District Court of Appeal of Florida | Date Filed: 2002-10-09

Citation: 831 So. 2d 681, 2002 WL 31255504

Snippet: premium finance company is addressed by section 627.848, Florida Statutes (1995). The statute provides

United Automobile Insurance Co. v. Brooks

Court: District Court of Appeal of Florida | Date Filed: 2002-08-14

Citation: 837 So. 2d 423, 2002 Fla. App. LEXIS 11584

Snippet: later the same day. The insurer relies on section 627.848(l)(f), which provides: If an insurance contract

Henry v. United National Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 2002-03-20

Citation: 813 So. 2d 177, 2002 Fla. App. LEXIS 3557, 2002 WL 428733

Snippet: finance company failed to comply with section 627.848, Florida Statutes (1997). Affirmed.

Bamboo Garden of Orlando, Inc. v. Oak Brook Property & Casualty Co.

Court: District Court of Appeal of Florida | Date Filed: 2000-08-31

Citation: 773 So. 2d 81, 2000 Fla. App. LEXIS 11055, 2000 WL 1228024

Snippet: complied with the notice requirements of section 627.848, and that it was entitled to rely on PAC’s representation

Alfred v. SECURITY NAT. INS. CO.

Court: District Court of Appeal of Florida | Date Filed: 2000-08-30

Citation: 766 So. 2d 449, 2000 WL 1226014

Snippet: that it complied with the requirements of section 627.848, Florida Statutes (1993), in canceling the insurance

Fidelity & Deposit Co. v. FIRST STATE INS.

Court: Supreme Court of Florida | Date Filed: 1996-06-20

Citation: 677 So. 2d 266, 21 Fla. L. Weekly Supp. 265, 1996 Fla. LEXIS 1011, 1996 WL 336077

Snippet: notice to the mortgagee. We disagree. Section 627.848, Florida Statutes (1987), provides in pertinent

Union American Insurance, Co. v. Verdes

Court: District Court of Appeal of Florida | Date Filed: 1996-02-07

Citation: 667 So. 2d 917, 1996 Fla. App. LEXIS 893

Snippet: Affirmed. § 627.728(3)(a), Fla.Stat. (1989); § 627.848, Fla.Stat. (1989) (amended 1992, 1993); Insurance

Perry & Co. v. Union American Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 1995-11-15

Citation: 664 So. 2d 1036, 1995 Fla. App. LEXIS 11954, 1995 WL 675547

Snippet: remit any excess premiums to the insureds. See § 627.848, Fla.Stat. (Supp.1994) On the other hand, the insureds

Glenney v. Service Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 1995-09-06

Citation: 660 So. 2d 1132, 1995 Fla. App. LEXIS 9338, 1995 WL 521079

Snippet: comparable but not identical provision in section 627.848(1) to allow the carrier to establish compliance

Prida v. Transamerica Insurance Finance Corp.

Court: District Court of Appeal of Florida | Date Filed: 1995-03-08

Citation: 651 So. 2d 763, 1995 Fla. App. LEXIS 2285, 1995 WL 91844

Snippet: insurance policy was cancelled. As required by Section 627.848(3), Florida Statutes (1993),1 *764the notice of

Security Mgt. v. Hartford Ins. Co.

Court: District Court of Appeal of Florida | Date Filed: 1994-08-17

Citation: 641 So. 2d 184, 1994 Fla. App. LEXIS 8190, 1994 WL 440749

Snippet: unearned portion of any premium paid." See also 627.848, Florida Statutes (1985) (insurer who cancels an

Insurance Company of North America v. Cooke

Court: Supreme Court of Florida | Date Filed: 1993-09-16

Citation: 624 So. 2d 252, 18 Fla. L. Weekly Supp. 488, 1993 Fla. LEXIS 1416, 1993 WL 365848

Snippet: question for our consideration: WHETHER SECTION 627.848 ALLOWS AN INSURER TO CANCEL AN INSURANCE CONTRACT

Cooke v. Insurance Co. of North America

Court: District Court of Appeal of Florida | Date Filed: 1992-06-17

Citation: 603 So. 2d 520, 1992 Fla. App. LEXIS 6526, 1992 WL 135039

Snippet: premium finance cancellation statute, section 627.848, Florida Statutes (1987), and if not, whether such

Bankers Ins. Co. v. Pannunzio

Court: District Court of Appeal of Florida | Date Filed: 1989-01-25

Citation: 538 So. 2d 61, 14 Fla. L. Weekly 270, 1989 Fla. App. LEXIS 289, 1989 WL 4373

Snippet: invalid for failure to strictly comply with section 627.848, Florida Statutes (1981), dealing with cancellation

Dingle v. Fortune Insurance Co.

Court: District Court of Appeal of Florida | Date Filed: 1987-12-08

Citation: 516 So. 2d 100, 1987 Fla. App. LEXIS 11424

Snippet: PER CURIAM. Affirmed. §§ 627.728(3)(c), 627.848(4), Fla.Stat. (1985).

Florida Insurance Underwriters, Inc. v. Sonny Financial Services Corp.

Court: District Court of Appeal of Florida | Date Filed: 1985-04-30

Citation: 467 So. 2d 835, 1985 Fla. App. LEXIS 13737

Snippet: Trust Co., 450 So.2d 1157 (Fla. 3d DCA 1984); § 627.848(6), Fla.Stat. (1983); Fla.Admin.Code Rule 4.28