Need more information?
Check out the
June 3rd, 2011 webisode of FAIA's Friday Morning Live! FSLSO Assistant Director Tom Terfinko explains the
nuances of HB 1087 and 99.
HB 1087 and 99 Amends Eligibility to Export
Insurance reform passed two major hurdles in the 2011 Florida Legislative Session with the passage of
CS/HB 1087 and
CS/CS/HB99.
Relative to surplus lines insurance, CS/HB1087 contains langauge that amends F.S. 626.916 Eligibility to Export to eliminate the agent
diligent search effort requirements for all commercial lines referenced under F.S. 627.062.
As such, agents are no longer required to complete a Diligent Effort form prior to the exportation of the risk for
the following commercial classes of coverages:
- Excess or Umbrella
- Surety and Fidelity
- Boiler and Machinery and Leakage and Fire Extinguishing Equipment
- Errors and Omissions
- Directors and Officers, Employment Practices, and Management Liability
- Intellectual Property and Patent Infringement
- Advertising Injury and Internet Liability
- Property risks rated under a highly protect risks rating plan
- Other types of Commercial Lines insurance as determined by the Office of Insurance Regulation
- Effective 10/1, the Office of Insurance Regulation has added Professional Liability to the Errors and Omissions category.
- Fiduciary Liability
- General Liability
- Nonresidential Property (except for collateral protection insurance as defined in F.S. 624.6085)
- Nonresidential Multi-Peril
- Excess Property
- Burglary and Theft
For the above risks, a signed disclosure statement
is required in place of the Diligent Effort form. Refer to our Coverage Matrix
for a concise view of the coverage categories.
However, this does not mean the end of the Diligent Effort requirement. Many admitted lines of coverage remain subject to rate regulation
and are unaffected by this legislative change. Residential property, residential multi-peril and commercial residential will remain subject to
the Diligent Effort requirement as well as the requirements for export eligibility as stated in F.S. 626.916.
Frequently Asked Questions