FLORIDA ADMINISTRATIVE CODE
TITLE 3. DEPARTMENT OF BANKING AND FINANCE
SUBTITLE 3D. DIVISION OF FINANCE
CHAPTER 3D-160. FLORIDA CONSUMER FINANCE ACT
Admin. Code § 3D-160.025 Property Insurance on Loans
(12) Collateral Insurance. When real or personal property, other than household goods and appliances, are used as collateral for a loan and the borrower is required, by the loan contract, to keep the collateral insured, a physical damage policy may be required naming the licensee as "Loss Payee." Should such insurance expire or be cancelled, the borrower may be required to furnish the licensee with replacement coverage. Should the borrower fail to furnish such a policy on written request, either a vendor's single interest or a dual interest replacement policy may be obtained by the licensee and the premium charged to the loan account.
FLORIDA STATUTES
TITLE XXXVIII. BANKS AND BANKING
CHAPTER 655. FINANCIAL INSTITUTIONS GENERALLY
§ 655.946 Single interest insurance placed by financial institutions
(1) If a financial institution purchases, or causes to be issued, insurance coverage to protect its security interest in a loan or indebtedness, and pursuant to contract or other agreement the borrower is responsible for payment of the premium, the financial institution must notify the borrower within 30 days after such purchase or issuance, in writing sent by first-class mail, of the following:
(a) The financial institution has purchased or caused to be issued an insurance policy which covers only its property interest which is the security for the loan or indebtedness.
(b) The borrower may avoid any additional premium charges by purchasing an acceptable dual interest insurance policy within 30 days after this notice, which shall terminate the single interest policy as of the effective date of the dual interest policy, and that any unearned premium paid will be returned, plus interest.
(2) This section does not apply to single interest insurance policies which provide coverage for property which is in transit or for conversion, embezzlement, or secretion by the borrower.
FLORIDA STATUTES
TITLE XXXVII. INSURANCE
CHAPTER 626. INSURANCE FIELD REPRESENTATIVES AND OPERATIONS
PART X. UNFAIR INSURANCE TRADE PRACTICES
§ 626.9551 Favored agent or insurer; coercion of debtors
(1) No person may:
(c) Require, directly or indirectly, that any borrower, mortgagor, purchaser, insurer, broker, or agent pay a separate charge in connection with the handling of any insurance policy that is required in connection with a loan or other extension of credit or the provision of another traditional banking product, or pay a separate charge to substitute the insurance policy of one insurer for that of another, unless such charge would be required if the person were providing the insurance. This paragraph does not include the interest which may be charged on premium loans or premium advances in accordance with the security instrument.
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