Compliance Review Information

The FSLSO Agent Compliance Review Program is a self-imposed regulatory measure. However, these procedures are requested under the advisement of the FSLSO Board of Governors with recommendations from the Florida Department of Financial Services.

The purpose of the review is to ensure there is compliance by the surplus lines agents relative to the export of surplus lines insurance contracts, to provide educational assistance to surplus lines agents where needed, and to measure the quality of service provided in the market place.

A letter of intent to review records, along with a list of items for the surplus lines agent to have ready for the review, is provided in advance of scheduling the review. The review is designed to verify information that the surplus lines agent is responsible for reporting to the Service Office, as well as, other information required to be maintained in order to comply with the Surplus Lines Law.

In order for the compliance review analyst to perform their duties, a desk/table, chair, telephone, as well as, power and a telephone outlet are necessary elements that the surplus lines agent being reviewed must make available. If these elements cannot be made available, please inform the analyst at the time the analyst calls to schedule/confirm the review date.

It is the surplus lines agents’ responsibility to make specific records available for the review. As requested, but not limited to, the compliance review will include a review of the following items made available by the surplus lines agents:

  • Surplus lines agent’s license;
  • Surplus lines agent’s bond with verification of current bond payment
  • Surplus lines agent’s or agency’s Accounts Payable Ledger relating to the “vendor” (all insurance companies, agents, brokers, and MGA’s) that have been paid in the last 12 months.
  • Access to policy records
  • Access to copies of Quarterly Report Affidavits

Thus, the FSLSO may review all, but not limited to, the information filed with the office as part of the reviewing procedures. All licensed surplus lines agents are subject to compliance reviews.

Upon completing the review, the surplus lines agent will receive a final report from the FSLSO in which a response/corrective action to the variances noted in the report may be requested.