Florida Statutes, Rules & Regulations Pertinent to Personal Lines Insurance Exam Questions and Answers 100%Verified

Renewal -ANSWER _45 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 -ANSWER _an official inventory of the loss. May be required by an insurance company in exchange for payment of a claim. Payment of Claims -ANSWER _Insurer 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 -ANSWER _A 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.