Florida Surplus Lines Service Office - www.fslso.com

FAQs » Compliance Review

What are some errors/deficiencies which can lead to a referral to the Department of Financial Services?

Any one of the following violations of the Florida Surplus Lines Law can result in referral for administrative action by the department:

Additional Fees - Fees in excess of the premium specified in the policy and as determined by the insurer.  Broker fees, consulting fees and similarly named fees that produce additional income for agents are not authorized by law.

Missing or Incomplete Diligent Effort Forms - Each surplus lines agent must maintain as part of each insured’s file a copy of the producing agent’s documentation of diligent effort.  Declinations must be documented on a risk-by-risk basis.  Commercial marine, transportation and aviation risks may be exported without conducting a diligent effort search.

Courtesy Filings – A courtesy filing occurs when a Florida licensed surplus lines agent countersigns and remits taxes for policies that he or she was not actively involved in the placement of.  First and foremost, a Florida surplus lines agents must be actively involved in the placement of the risk. Actively involved means, you handled the application and bound the coverage.  The courtesy filing law prohibits surplus lines agents from filing business not directly procured.

Unfiled/Unreported Premium – Unreported premiums, discovered during a compliance review, not filed with FSLSO within 45 days after the date of review may result in a referral to the department.

Ineligible Unauthorized Insurers - Any insurance agent licensed in this state who in this state knowingly represents or aids an unauthorized insurer in violation of s. 626.901 commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(FAQID: 443)

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