Summary judgment granted as defendant did not return plaintiff to status quo after failing to issue interest owed on premium refund check after rescinding the policy for material misrepresentation by the insured.

The instant suit involved a dispute between an insurance carrier and its insured, Jose Gonzalez. The claim involved a motor vehicle accident that was alleged to have occurred on September 09, 2019, involving the insured. Following the motor vehicle accident, Gonzalez made a claim for PIP benefits under his policy of insurance, which had been issued by the defendant insurance company on January 15, 2019. 

Following an investigation of the claim, the defendant rescinded the policy of insurance due to an alleged material misrepresentation made by Gonzalez on the application for insurance by failing to properly disclose his marital status by listing himself as married when he was, in fact, not legally married. Following the rescission of the policy, the defendant refunded Gonzalez’s premium. However, the premium refund did not include a payment for the interest accrued on the premium. In his summary judgment, counsel for Gonzalez argued that the defendant’s failure to issue interest on the premium refund constituted a failure to return him to the status quo and that the defendant had essentially issued the policy without properly underwriting same until a claim was made. 

The defendant argued that Florida law does not require interest to be included in the premium refund if it is issued within 15 days after the effective date of the policy cancellation, citing Fla. Stat. 627.7283(2)-(3). While the court did not make a finding as to post-claim underwriting, the court did agree that the defendant’s failure to include interest in the premium refund check failed to return Gonzalez to the status quo. 
 

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