Bulletin #2005-005
| TO: | SURPLUS LINES AGENTS AND ELIGIBLE SURPLUS LINES INSURERS |
| FROM: | GARY D. PULLEN, EXECUTIVE DIRECTOR
FLORIDA SURPLUS LINES SERVICE OFFICE |
| DATE: | December 16, 2005 |
| SUBJECT: | SERVICE OFFICE FEE REDUCED FROM 0.25% TO 0.2% |
The purpose of this bulletin is to notify you that the Florida Department of Financial Services, Office of
Insurance Regulation has approved a reduction in the service fee charged by the Florida Surplus Lines Service
Office (FSLSO) from 0.25% to 0.2% effective April 1, 2006.
All new and renewal policies/certificates with an effective date on or after April 1, 2006 will incur a
service fee of 0.2% of the total gross premium. All new and renewal policies/certificates with an effective date
prior to April 1, 2006 will incur a service fee of 0.25% of the total gross premium. The service fee percentage
charged on the premium is based on the effective date of the policy.
The service fee for all endorsements, audits, installments, cancellations or return of premium
transactions applicable to policies/certificates effective prior to 04/01/2006 will be the same
percentage as the inception date of the policy/certificate being endorsed.
EXAMPLE ONE: The service fee for a policy with the term of 01/01/2006 is 0.25% of the total gross premium.
An additional premium endorsement to the policy with an endorsement effective date of 06/01/2006 is 0.25%.
If a cancellation takes place with an effective date of 08/01/2006, the service fee credit is 0.25%.
EXAMPLE TWO: The service fee for a policy with the term of 04/01/2006 is 0.2% of the total gross premium.
An additional premium endorsement to the policy with an effective date of 06/01/2006 is 0.2%.
If a cancellation takes place with an effective date of 08/01/2006, the service fee credit is 0.2%.
Again, the service fee percentage charged on the premium is based on the effective date of the policy.
Business rules for calculating the correct service fee have been programmed into the FSLSO's management system.
If you are using FSLSO Reporting Software, or Surplus Lines Information Portal (SLIP) you do not have to
make any changes. You should contact your agency information technology vendor or staff regarding needed
revisions to your agency management system necessary to calculate the revised service fee.
For further information contact the FSLSO toll-free at 1-800-562-4496 or visit www.fslso.com.