1. Cancellations Requested by Named Insureds Policies and binders cancelled at the request of the insured except as provided in FS 627.7282 or 627.7283 (5) will be cancelled at .90 of pro rata. If you are a servicemember as defined in FS 627.7283 (5) who cancels because he or she is called to active duty or is transferred by the United States Armed Forces to a location where the insur- ance is not required, we will refund 100% of pro rata unearned premium.
The FAJUA shall return the unearned portion of any premium paid within 30 days after the effective date of the policy cancellation or receipt of notice or request for cancellation, whichever is later.
Cancellations requested by the named insured may not be back dated more than 30 days from the date of receipt by the FAJUA without proof of replace- ment coverage, sales record, or other pertinent documentation.
Exception: For commercial policies subject to audit, any refunds shall be made within 90 days.
2. Cancellations by FAJUA
Policies and binders cancelled at the request of the FAJUA or in accordance with provisions of FS 627.7282 or 617.7283(5) will be cancelled pro rata. a. The FAJUA shall return the unearned portion
of any premium paid within 15 days after the effective date of the policy cancellation. b. Fees charged by the FAJUA for all financial
responsibility filings are not refundable.
c. A copy of each cancellation notice shall be furnished to the producer of record.
3. No policy may be cancelled during the first 60 days except when the named insured has been charged a premium for private passenger auto insurance that is incorrect on the application, the insured will be provided a period of no less than 10 days to a. pay the additional premium, or
b. request cancellation of the policy.
If the named insured fails to timely respond to the notice, the service provider will cancel the policy and return any unearned premium to the named insured in accordance with 627.7282 FS.
B. Delay of Cancellation
An insured’s request for cancellation may be delayed if a financial responsibility filing or certificate of insurance has been filed to enable the FAJUA to comply with any advance notice of cancellation requirements.
C. Voiding Policies Ab Initio
1. If this is a new policy for private passenger autos providing personal injury protection and property damage liability insurance, the FAJUA will not can- cel for nonpayment of premium during the first 60 days following the effective date of the policy, ex- cept as noted in A.3. However, the FAJUA may void the policy ab initio if a check for the initial pre- mium is dishonored for any reason.
2. If this is a new policy providing bodily injury and property damage liability, personal injury protec- tion, medical payments, comprehensive, collision, and uninsured motorists for a private passenger type auto, the FAJUA shall void the policy ab initio if the check from the applicant delivered to the pro- ducer for the payment of the initial premium is dis- honored provided the
a. producer has complied with 627.728 FS; b. producer provides a copy of the NSF check to
the FAJUA within 48 hours of receipt from the depositing financial institution;
c. producer sends a certified or registered letter to the applicant/insured within 48 hours of re- ceipt of returned check from the bank; d. producer sends a copy of the certified or regis-
tered letter along with proof of mailing, deliv- ery, or nondelivery within 15 days of the date
of the letter if they are unable to collect the premium;
e. replacement payments from insureds shall be accepted only if made by certified check or money order payable to the FAJUA
D. Cancellation of Personal Injury Protection and Property Damage Only Policy at Request of Named Insured
An insured may not cancel a policy which provides personal injury protection and property damage liability coverage for private passenger autos during the first two months immediately following the effective date of a new or renewal policy except
1. upon total destruction of the insured auto; 2. upon transfer of ownership of the insured auto; or 3. after purchase of another policy covering the auto
which was covered under the policy being can- celled.
4. The named insured is a member of the United States Armed Forces, the Florida National Guard, or the United States Reserve Forces because he or she is called to active duty or is transferred by the United States Armed Forces to a location where the insurance is not required.
E. FAJUA Cancellations and Nonrenewals
1. The FAJUA shall cancel a binder if the risk is ineligible for coverage in the FAJUA. Refer to Rule 2. Eligibility.
2. The FAJUA shall cancel a policy or binder if the insured
a. is not or ceases to be eligible or in good faith entitled to insurance; or
b. has failed to pay any premium due under the policy, or;
c. fails to provide records or information to properly estimate the initial premium charge; or
d. has obtained insurance through material mis- representation or fraud; or
e. the driver’s license or motor vehicle registra- tion of the named insured or of any operator who either resides in the same household or operates an automobile insured under the pol- icy has been under suspension or revocation during the policy period or the 180 days imme- diately preceding its effective date or, if the policy is a renewal, during its policy period. This subsection shall not apply to any policy which has been in effect less than 60 days at the time notice of cancellation is mailed or de- livered by the insurer unless it is a renewal pol- icy.
3. The FAJUA may cancel a policy or binder if the insured
a. makes materially incorrect or misleading statements in the prescribed application form; or
b. fails to report all information of a material na- ture; or
c. has failed to comply with reasonable safety requirements; or
d. fails to provide information requested by the servicing carrier to complete a classification check; or
e. cannot be located.
Note: A servicing carrier may cancel a policy written in accordance with F.S. 627.7275 during the first 30 days of the policy term. 4. The FAJUA will nonrenew or cancel a policy for the
following reasons:
a. The named insured did not cooperate and pro- vide information to complete an audit and/or an inspection within 60 days of a written re- quest from the FAJUA or its auditor/inspector. b. The named insured did not provide current
copies of motor vehicle records for all opera- tors and current copies of all vehicle registra- tions in the name of the named insured or leasing company.
F. The named insured shall be given notice of cancellation at least 45 days prior to the effective date of cancella- tion, except 10 days for nonpayment and 5 days for binders. Such notices of cancellation shall state the reason or reasons the application was rejected or the policy cancelled.
G. When a policy is cancelled for nonpayment of premium by an approved premium finance company, the FAJUA may request copies of the notice of cancellation and evidence of mailing as a condition to honoring the cancellation effective date requested by the premium finance company.
Note: Disregard February 29 in leap years when determining pro rata earned premiums.