As previously reported, a new policy was implemented by the Office of Insurance Regulation on April 11, 2011 and it places requirements on VSC companies and motor vehicle dealers which states:
- VSC companies (and their dealers) must demonstrate that refunds and other payments due consumers are being made in accordance with statutory provisions found in Sections 634.121 and 634.282, Florida Statutes
- Section 634.282, Florida Statutes, specifies that excess premiums or charges must be refunded within 45 days.
Ways to document return of commissions: (you will be called upon to provide these)
- Copy of the front and back of canceled check from the company or automobile dealer, or the issuing salesperson or agent, showing the full refund amount to the consumer
- Copy of the front and back of canceled check to a financial institution or other settlement documentation showing payment to the lender for the full refund amount on behalf of the consumer or demonstrating that the full refund amount was applied to the consumer’s outstanding loan balance
- If the check was not negotiated by the consumer, evidence that the company informed the consumer of cancellation refund amount and directed the consumer to contact the salesperson or agent for the unpaid refund amount
- Copy of buyer’s order demonstrating that credit in the amount of the refund was applied to the purchase or lease of another vehicle
Note: This list is not intended to provide an exhaustive listing of the detailed document acceptable by the Office of Insurance Regulation.