What is FSLSO?
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In 1997, the Florida Legislature created the
Florida Surplus Lines Service Office (FSLSO),
a self-regulating, nonprofit association. All
surplus lines agents shall, as a condition
of holding a surplus lines agent’s license in
Florida, be recognized as members of this
association.
In an effort to help agents maintain
compliance with the rules governing the
sale of surplus lines insurance in the state
of Florida, the following provides a brief
description of FSLSO and an outline of the
responsibilities and requirements of its
member agents.
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Toll-Free:
(800) 562-4496
Local:
(850) 224-7676
Website:
www.fslso.com
Address:
1441 Maclay Commerce Dr.
Suite 200
Tallahassee, FL 32312
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FSLSO was created to oversee and provide
order to the surplus lines industry in the
state. The FSLSO mission is to facilitate
agent compliance.
The Surplus Lines Law provides orderly
access for the insurance buying public to
insurers not authorized to transact insurance
in Florida unless conducted through licensed
and supervised resident and nonresident
surplus lines agents in the state of Florida.
Oversight of FSLSO is provided by a Board
of Governors and the Florida Department of
Financial Services (DFS).
A GUIDE FOR AGENT’S COMPLIANCE
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Responsibilities of Surplus Lines
› Maintain an active appointment as a surplus lines agent in order to
› Notify FSLSO and DFS within 30 days after change of principal
place insurance coverage with eligible surplus lines insurers, and
renew it every two years during an agent’s birth month.
business street address, mailing address or email address.
› Collect a premium-receipts tax of 5% on all taxable gross premiums
› Keep and maintain a full and accurate record of each surplus lines
FSLSO’s Responsibilities
› Receive, record and review all surplus lines insurance policies or
documents.
› Maintain records of surplus lines policies reported and prepare
reports for the DFS as requested.
› Prepare and distribute to each agent a quarterly report of each
agent’s surplus lines transactions.
› Collect and remit to the DFS the surplus lines taxes collected from
the sale of surplus lines insurance policies.
› Collect and remit to appropriate entities applicable assessments
collected from the sale of surplus lines insurance policies.
› Perform a comparison of the policies written in the non-admitted
charged for surplus lines insurance (excluding commercial aircraft,
commercial ocean marine, motor truck cargo, state government or its
agencies, or any county or municipal government).
policy and all attachments for a period of five years, as well as, a copy
of the diligent effort statement.
› Export insurance only with eligible unauthorized insurers.
› Provide, within 30 days of request by FSLSO, an exact copy of any
› Collect, from each insured, the correct service fee on the gross
premium charged for surplus lines insurance. Please see back panel
for guidelines to charge the correct service fee amount.
requested policy, including all attachments.
› Submit electronically, in the required format, all monetary
› Promptly issue and deliver to the insured evidence of purchased
transactions to FSLSO within 30 days from the effective date of
coverage.
insurance in the form of a policy or other confirmation of
insurance.
› Maintain a record of confirmation numbers provided by FSLSO to
› File with FSLSO a Quarterly Report Affidavit confirming all surplus
indicate that all transactions have been submitted as required.
lines business reported during such calendar quarter on or before
45 days following the end of each calendar quarter. Agents who do
not transact any business must still file a Quarterly Report Affidavit
indicating no business was transacted during the reporting period.
The Quarterly Report Affidavit should be completed through the
Surplus Lines Information Portal (SLIP).
market by surplus lines insurers with the information reported to
FSLSO by surplus lines agents.
› Notify FSLSO in writing of a transfer of previously filed policies
to another agent. The assuming agent must also send written
notification to FSLSO accepting responsibility for the files.
› Train and educate member agents.
Applicable Assessments
Service Fee Guidlines
All new and renewal policies/certificates will also incur a service fee (as
determined by the effective date of the policy) calculated upon the total
gross premium, excluding the 5% premium receipts tax, Citizens Property
Insurance Corporation and Florida Catastrophe Fund Assessments and
any Emergency Management Preparedness and Assistance Surcharge.
See FSLSO.com for a listing of current rates.
› As determined by Citizens Property Insurance Corporation
Fund with the ability to assess surplus lines policyholders to pay
emergency assessments in the event that the CAT Fund board
determines a deficit exists. FSLSO is responsible for verifying
the premium subject to the assessment and for collecting the
assessment through the surplus lines agent.
› Additionally, FSLSO collects the Emergency Management
Preparedness Assistance (EMPA) Trust Fund surcharge. The
surcharge is $2.00 for residential coverages and $4.00 for
commercial property coverages.
state agency thereof are exempt from taxes and the service fee.
Electronic filing may be completed using FSLSO’s Surplus Lines
Information Portal (SLIP), a web-based means to electronically submit
data. Agents may contact FSLSO or visit its website for an Agent’s
Procedures Manual to help maintain compliance standards.
Please refer to Chapter 626, Part VIII, Florida Statutes for detailed
information on the Surplus Lines Law.
Policy - An insurance policy, contract, cover note, certificate
or any other detailed evidence of coverage, including policy
jacket, endorsements and coverage parts.
Definition of Terms
› Florida law also provides the Florida Hurricane Catastrophe (CAT)
an incorporated surplus lines agency shall remain personally
and fully liable for any wrongful acts, misconduct or violations
of any provisions of the Surplus Lines Law committed by such
licensee or any person under their direct supervision or control
while acting on behalf of the corporation.
› Taxes not paid when due are recoverable through legal action
by DFS.
› DFS may, at its discretion, deny, suspend, revoke or refuse to
renew the license and appointment of any agent.
› Any agent who neglects to pay taxes as required by law and
within the time due may be fined up to $500 per day by DFS
for each day that the payment is late, beginning the day after
the tax is due. Interest shall be charged on the amount of any
delinquent tax due at the rate of 9% per year, compounded
annually, beginning the date the tax becomes delinquent.
license must notify FSLSO and DFS in writing of their intent to
do so.
› Any agent who neglects to file a Quarterly Report Affidavit
Insurance risks of the state, county, or municipal government or of any
(Citizens), agents are required to collect an assessment fee, from
each insured, levied on pre-determined coverages. The Citizens
assessment does not include any Emergency Management
Preparedness and Assistance Surcharge, the 5% premium tax
and the service fee. The Citizens’ assessment period begins upon
notification by Citizens and will be remitted to FSLSO as determined
by FSLSO.
› Any agent who is an officer, director, stockholder or employee of
› Any agent wishing to non-renew or surrender a surplus lines
› Collect, from each agent, the service fee on the total gross premium
of each surplus lines transaction reported. Service fees must by
paid by the insured and cannot be absorbed by the surplus lines
agent.
Additional Rules
Surplus Lines Agent - An individual licensed and appointed
to handle the placement of insurance coverage with eligible
unauthorized insurers.
Eligible Surplus Lines Insurer - An unauthorized insurer
made eligible by the Office of Insurance Regulation to issue
insurance coverage under the Surplus Lines Law.
Export - To place, with an unauthorized insurer under the
Surplus Lines Law, insurance covering a subject of insurance
resident, located or to be performed in this state.
within the time required by law may be fined up to $50 per
day by DFS for each day the report is late, beginning the day
after the Quarterly Report Affidavit was due until the report is
received by FSLSO.
› Taxes and service fee payments are due on or before 45 days
following the end of the quarter in accordance with the invoices
provided by FSLSO. Payments may be made electronically
through the Surplus Lines Information Portal (SLIP) or via
check. Checks should be made payable and mailed to:
Florida Surplus Lines Service Office
PO Box 864593
Orlando, FL 32886-4593
Diligent Effort - Seeking coverage from and having been
rejected by at least three authorized insurers currently writing
this type of coverage and documenting these rejections,
except when seeking coverage for a resident structure with a
dwelling replacement value of $1 million or more as the agent
needs only one rejection from an insurer.
Disclosure Statement - For certain types of coverage and
in lieu of the diligent effort search process, a disclosure
statement may be signed by the insured in order to place
these coverages with an eligible nonadmitted insurer.
› Agents are prohibited from performing “Courtesy Filings.”