onecle - legal research

State Law

Federal Law

Florida Regulation Of Trade, Commerce, Investments, And Solicitations Code Section 494.0026 - Mortgage Brokerage And Mortgage Lending - Disposition of insurance proceeds.

Legal Research Home > Florida Lawyer > Regulation Of Trade Commerce Investments and Solicitations > Florida Regulation Of Trade, Commerce, Investments, And Solicitations Code Section 494.0026 - Mortgage Brokerage And Mortgage Lending - Disposition of insurance proceeds.

Title XXXIII   REGULATION OF TRADE, COMMERCE, INVESTMENTS, AND SOLICITATIONS

Chapter 494   MORTGAGE BROKERAGE AND MORTGAGE LENDING

494.0026  Disposition of insurance proceeds.--The following provisions apply to mortgage loans held by a mortgagee or assignee that is subject to ss. 494.003-494.0077.

(1)  The mortgagee or assignee must promptly endorse a check, draft, or other negotiable instrument payable jointly to the mortgagee or assignee and the insured by the insurance company. However, the mortgagee or assignee is not required to endorse such instrument if the insured or a payee who is not subject to ss. 494.003-494.0077 refuses to endorse the instrument.

(2)  Insurance proceeds received by a mortgagee or assignee that relate to compensation for damage to property or contents insurance coverage in which the mortgagee or assignee has a security interest must be promptly deposited by the mortgagee or assignee into a segregated account of a federally insured financial institution.

(3)  Insurance proceeds received by a mortgagee or assignee that relate to contents insurance coverage in which the mortgagee or assignee does not have a security interest in the contents must be promptly distributed to the insured by the mortgagee or assignee.

(4)  Insurance proceeds received by a mortgagee or assignee that relate to additional living expenses must be promptly distributed to the insured by the mortgagee or assignee.

(5)  The mortgagee or assignee is not required to remit the portion of the proceeds relating to additional living expenses and contents insurance if the mortgagee or assignee is not able to determine which part of the proceeds relates to additional living expenses and contents insurance.

Nothing in this section shall be construed to prevent an insurance company from paying the insured directly for additional living expenses or paying the insured directly for contents insurance coverage if the mortgagee or assignee does not have a security interest in the contents.

History.--s. 5, ch. 95-313.

Florida Lawyers

Fort Lauderdale, Florida Lawyers

Miami, Florida Lawyers

Orlando, Florida Lawyers

Pensacola, Florida Lawyers

Tampa, Florida Lawyers

West Palm Beach, Florida Lawyers

Last modified: November 21, 2006