CopyCited 7 times | Published | Florida 2nd District Court of Appeal | 2006 WL 2088264
...Norman, Assistant General Counsel, Tallahassee, for Amicus Curiae The Office of Insurance Regulation. WHATLEY, Judge. Michelle Reaume sued her insurer, Progressive Express Insurance Company, alleging that Progressive collected unlawful and excessive premium finance charges in violation of section 627.901, Florida Statutes (2002)....
...of paid-in-full customers who received this discount should be considered a financing charge. Reaume further argued that when this financing charge is added to Progressive's regular financing charge, the total charge is above the maximum allowed by section 627.901....
CopyCited 2 times | Published | Florida 2nd District Court of Appeal | 2004 WL 2008227
...included with each installment payment. Smith, on behalf of herself and others similarly situated, alleged in her complaint that these fees violated the premium financing statutes of Florida Insurance Code parts XV and XVI, sections
627.826-.849 and
627.901-.904, Florida Statutes (1995), respectively....
...She sought a declaratory judgment and injunctive relief as well as statutory damages, pursuant to section
627.835, of twice the service fees paid. Part XVI of the insurance code, which addresses premium financing by insurance companies and agents, provides, inter alia:
627.901 Premium financing by an insurance agent or agency. (1) A general lines agent may make reasonable service charges for financing insurance premiums on policies issued or business produced by such an agent or agency.......
...ance premiums on policies issued or business produced by such insurer or insurers; however, any such insurer, subsidiary, or corporation or group of insurers the service charge or rate of interest of which is substantially more than that provided in s. 627.901 shall be subject to part XV of this chapter....
...ncing statutes because they did not constitute an "advancement of funds or credit." The trial court's order granting summary judgment added that even if the service fees were governed by the statutes, they did not exceed the maximum amounts allowed. Section 627.901 of part XVI provides two options for premium financing by an insurance agent or agency: a general lines agent may charge either (1) a maximum service charge of $1 per installment or a total of $6-$12 per year depending on the amount of the premium balance or (2) "in lieu of such service charges, ......
...a rate of interest not to exceed 18 percent simple interest per year on the unpaid balance." Section
627.902 allows an insurer or subsidiary such as American Federation or Foremost the same two options as long as such service charge or rate of interest is not "substantially more than that provided in s.
627.901." If such charges are "substantially more" than that, the insurer or subsidiary is subject to part XV of the insurance code, which regulates insurance finance companies and requires department licensure and use of department-approved premium finance agreements....
...Therefore, we reverse the trial court's ruling that they did not. Foremost's bills sent to Smith identified its charges as "service fees" rather than "interest" and did not identify the charges as representing interest on unpaid balances. The plain language of part XVI, section 627.901, as it read at the time of the transactions in this case, limited service fees for agents or agencies to $1 per installment and $12 total per year, or alternatively they can charge interest not to exceed 18 percent simple interest....
...keeping, and limitations on charges. Insurers and subsidiaries such as Foremost also become subject to part XV, pursuant to part XVI, section
627.902, if the total service charge per year or interest rate "is substantially more than that provided in s.
627.901...." The record indicates Foremost charged Smith $5 per installment and $10, $20, and $50 total for various years on the Flex-a-Bill plan....
...In the years in which Foremost charged Smith $20 and $50, these amounts clearly exceeded the $12-per-year limit as service fees. We conclude that at least some of Foremost's charges also exceeded 18 percent simple interest per year. The legislative history of chapter 2002-252, Laws of Florida, which amended section 627.901, illustrates the proper calculation and billing of interest charges when premiums are financed by insurance agents, agencies, or companies....
...arge at the last installment, when the previous outstanding balance was $246.51, each exceeds 18 percent simple annual interest.* The trial court did not address whether these amounts were "substantially more than" the maximum 18 percent provided in section 627.901 for insurance agents or agencies....
...We affirm the denial of Smith's cross-motion for summary judgment. A question of material fact remains as to whether the service charges Foremost assessed to Smith and others similarly situated were "substantially more than that provided in s[ection]
627.901," which would subject Foremost to part XV of the code, see §
627.902, and penalties for any noncompliance....
...ion. See Carter v. Brown & Williamson Tobacco Corp.,
778 So.2d 932, 936 (Fla.2000); Moore v. Morris,
475 So.2d 666, 668 (Fla.1985). Reversed in part, affirmed in part, and remanded. NORTHCUTT and DAVIS, JJ., Concur. NOTES [1] The legislature amended section
627.901, effective May 13, 2002, to read in pertinent part: (1) ......
