UNITED STATES FIRE INSURANCE COMPANY, APPELLANT,
v.
TOM ROBERTS D/B/A HOSPITALITY INN, APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
United States Fire Insurance Company appeals from a summary judgment in favor of its insured, Tom Roberts. The court affirmed the judgment, holding that the insurer's coinsurance clause was void and unenforceable because the policy failed to include the statutory notice required by Florida Insurance Code Section 627.701(1), and the insured's knowledge of the clause was irrelevant to this violation.
The court affirmed summary judgment. The coinsurance clause is void and unenforceable because the insurer failed to comply with the statutory requirement to print or stamp the required notice on the face of the policy or attach it as a form. The insured's knowledge of the coinsurance clause's existence is irrelevant to determining whether it is void.
[1] A trial court does not abuse its discretion in allowing withdrawal from a pretrial stipulation when the motion is timely, noticed to the opposing party, and supported by…
[2] Summary judgment is proper when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law based on undisputed facts.
Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The trial court properly held that such omission rendered the coinsurance provisions of the policy void and unenforceable.”
Establishes that the failure to include required statutory language on the policy voids the coinsurance clause entirely
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceHospitality Inn, owned by Tom Roberts, sustained substantial fire damage and filed a claim with United States Fire Insurance Company. The insurer invo…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Good Cause For Withdrawal cases and more on FLexlaw
PER CURIAM.
United States Fire Insurance Company appeals from a final summary judgment entered in favor of the plaintiff/insured Tom Roberts d/b/a Hospitality Inn. Appellant contends that the trial court erred in: (1) granting the plaintiff's motion for leave to withdraw from a pretrial stipulation; and (2) granting plaintiff’s motion for summary judgment.
As to the first issue, we find that the trial court did not abuse its discretion in allowing withdrawal from the stipulation, the plaintiff having filed a timely motion, with notice to the opposing party, and supported by an affidavit showing good cause. See Curr v. Helene Transportation Corp., 287 So. 2d 695 (Fla. 3rd DCA 1973); Hartford Insurance Co. v. Redding, 47 Fla. 228, 37 So. 62 (1904); Lopez v. Dublin Company, 489 So. 2d 805, 807 fn. 3 (Fla. 3rd DCA 1986). The trial court properly considered the fact that the defendant had not theretofore relied to its detriment upon the stipulation. See 2 Fla.Jur.2d Agreed Case and Stipulations § 17; and Redding, supra.
As to the second issue, we find that the trial court properly entered summary judgment in favor of the plaintiff/appellee. The record shows that there were no genuine issues of material fact and that based on the undisputed facts, the plaintiff was entitled to judgment as a matter of law.
A business known as Hospitality Inn, owned and operated by appellee, sustained substantial damage as a result of a fire. Appellee filed a claim with appellant, his insurance carrier. Under the coinsurance clause of the insurance policy, appellant invoked a penalty provision because the appellee’s property was undervalued. The trial court held that the policy’s coinsurance clause was void for failure of the policy to include a statement in the form required under the Florida Insurance Code, specifically Section 627.701(1), Florida Statutes (1983), which provides:
627.701 Coinsurance contracts. — A property insurer may issue an insurance policy or contract covering either real or personal property in this state which contains provisions requiring the insured to be liable as a coinsurer with the insurer issuing the policy for any part of the loss or damage by covered peril to the property described in the policy only if:
(1) The following words are printed or stamped on the face of the policy, or a form containing the following words is attached to the policy: “Coinsurance contract: The rate charged in this policy is based upon the use of the coinsurance clause attached to this policy, with the consent of the insured.”;
(2) The coinsurance clause in the policy is clearly identifiable; and
(3) The rate for the insurance with or without the coinsurance clause is furnished the insured upon his request.
The policy did not contain the language required by subsection one, either on the face of the policy or on a form attached to the policy. The trial court properly held that such omission rendered the coinsurance provisions of the policy void and unenforceable.
Our view of the correctness of the trial court’s order is based in significant part upon the legislative history of Section 627.-701. Prior to the hereinafter discussed legislative amendment in 1982, the 1981 version of Section 627.701 provided as follows:
627.701 Coinsurance contracts. — No property insurer shall issue any policy or contract of fire insurance covering either real or personal property in this state which contains any clause or provision requiring the insured to take out or maintain a larger amount of fire insurance than that expressed in such policy; nor in any way provide that the insured shall be liable as a coinsurer with the insurer issuing thé policy for any part of the loss or damage which may be caused by fire to the property described in such policy; and any such clause or provision shall be null and void, and of no effect unless there is printed or stamped on the face of such policy or on a form attached thereto the words: “COINSURANCE CONTRACT. The rate charged in this policy is based upon use of a coinsurance clause attached hereto, with the consent of the insured.” The rate for the insurance with and without the coinsurance clause shall be furnished the insured upon request. (e.s.)
This statutory provision was amended by Chapter 82-243, section 538, Laws of Florida, to read as indicated in the 1983 version of the statute hereinbefore quoted. As can be seen from the 1983 version, there is no express statement that the coinsurance clause is null and void if the requisite statement is not stamped on the face of the policy. Does this mean that the 1983 version of the statute should be construed to mean that a coinsurance clause which is in violation of the statute is enforceable? We believe not.
When a statute is amended, as Section 627.701 was amended in 1982, one may assume, unless a contrary indication appears, that the legislature intended the amended statute to have a meaning different from that accorded to it before the amendment. See Hall v. Oakley, 409 So. 2d 93, 97 (Fla. 1st DCA 1982). In the case of Section 627.701, however, the legislative history of this change makes clear that no substantive change was intended. Specifically, the staff analysis prepared in conjunction with the house bill which became Section 627.701 (1983) provided: “This section provides the circumstances under which property insurers may issue insurance contracts with co-insurance provisions. The new language is a technical rewrite of current law to make it more readable.” Staff Analysis, HB 4F, page 91. Similarly, the industry analysis prepared in conjunction with the revision of Section 627.701 commented only as follows: “A technical revision which clarifies the present language.” Insurance Industry Sunset Proposal, page 1056 (emphasis added). Thus, the legislative history of this change clearly identifies the change as merely clarifying. A long existing rule of statutory construction is that mere statutory change of language does not necessarily indicate an intent to change the law, for the intent may be to clarify what was doubtful and to safeguard against misapprehension as to existing law. Keyes Investors Series 20, Ltd. v. Department of State, 487 So. 2d 59, 60 (Fla. 1st DCA 1986); Ocala Breeder Sales Co. v. Division of Pari-Mutuel Wagering, Department of Business Regulation, 464 So. 2d 1272, 1274 (Fla. 1st DCA 1985). In view of the statements made contemporaneously with the enactment of this amendment, the amend- merit was obviously intended to be merely clarifying.
This conclusion is buttressed by an additional rule of statutory construction: “The provisions of statutes enacted in the public interest should be given a liberal construction in favor of the public.” Department of Environmental Regulation v. Goldring, 477 So. 2d 532, 534 (Fla.1985). The consumer protection policy embodied in Section 627.701 must be given a liberal construction in order to insure that the public interest protection intended is effectuated.
We also find support, generally, in the observation by the Fifth Circuit Court of Appeals in Home Ins. Co., New York v. Eisenson, 181 F. 2d 416 (5th Cir.1950), wherein the court noted that coinsurance clauses “are entirely prohibited by statute in some jurisdictions, greatly restricted in others, and subject in all to a strict construction and the requirement of strict proof.” Id. at 419.
Appellant urges that summary judgment was not justified because, even though the requisite statutory notice was absent from the policy, there was still an issue of fact as to whether the insured was aware of the existence of the coinsurance clause in the contract. We agree with the trial court’s conclusion that such knowledge is of no consequence; the coinsurance clause is nevertheless void and of no effect because of the carrier’s violation of the statutory requirement.
AFFIRMED.
SMITH, C.J., and ERVIN and NIMMONS, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
QBE Ins. Corp. v. Chalfonte Condo. Apt. Ass'n, Inc., 94 So. 3d 541 (Fla. 2012)…rida district courts have reached opposite conclusions as to the consequences for failure of an insurance policy to strictly comply with statutory requirements which did not specify a penalty for noncompliance. Compare U.S. Fire Ins. Co. v. Roberts, 541 So. 2d 1297 (Fla. 1st DCA 1989) with Prida v. Transamerica Ins. Fin. Corp., 651 So. 2d 763 (Fla. 3d DCA 1995). In Roberts, the First District declared void a pokey’s coinsurance clause because it did not comply with the requirements of section 627.701(1). This…
-
Fla. Farm Bureau Cas. Ins. Co. v. COX, 943 So. 2d 823 (Fla. 1st DCA 2006)…hen the Legislature makes a substantial and material change in the language of a statute, it is presumed to have intended some specific objective or alteration of law, unless a contrary indication is clear.”); United States Fire Ins. Co. v. Roberts, 541 So. 2d 1297, 1299 (Fla. 1st DCA 1989) (“When a statute is amended, ... one may assume, unless a contrary indication appears, that the legislature intended the amended statute to have a meaning different from that accorded to it before the amendment.”). The sta…
-
Leila Fawaz v. Florida Polymers and Fiesco, 622 So. 2d 492 (Fla. 1st DCA 1993)…o. 2d 876 (Fla.1982). In such cases, one relevant consideration is whether setting aside the stipulation will unfairly prejudice the opposing party. E.g., Carnegie Steel; McGregor; Sam Galloway Ford; Redding; United States Fire Ins. Co. v. Roberts, 541 So. 2d 1297 (Fla. 1st DCA 1989). Whether to set aside a stipulation rests in the sound discretion of the trial court, and will not be reversed on appeal absent a clear abuse of that discretion. E.g., Graefenhain; Morrison v. Genuine Parts Co., 828 F. 2d 708 (11…
Previewing 3 of 9 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- The Hartford Fire Ins. Co. v. Redding, 47 Fla. 228 (Fla. 1904)
- Dep't OF Env't Reg. v. Goldring, 477 So. 2d 532 (Fla. 1985)
- Hall v. The Honorable Thomas D. Oakley, 409 So. 2d 93 (Fla. 1st DCA 1982)
- Curr v. Helene Transp. Corp., 287 So. 2d 695 (Fla. 3d DCA 1973)
- Lopez v. The Dublin Co., 489 So. 2d 805 (Fla. 3d DCA 1986)
- Ocala Breeder Sales Co., Inc. v. Division of Pari-Mutuel Wagering, 464 So. 2d 1272 (Fla. 1st DCA 1985)
- Keyes Invs. Series 20, Ltd. v. Dep't OF State, 487 So. 2d 59 (Fla. 1st DCA 1986)
- Home Ins. Co. v. Eisenson, 181 F.2d 416 (5th Cir. 1950)