Compliance FAQs

• Name
• Florida License ID Number
• Mailing address
• Telephone number
• Enclose your Florida insurance license ID or a statement indicating that you do not have the ID
• Signature of the licensee
• Copy of government-issued photo identification

A Basic Review is a review of an agent who is currently writing or has written surplus lines business within the last three years. 

The review verifies the status of the agent’s surplus lines license and the proper reporting of surplus lines policies. FSLSO will review randomly selected policies to ensure compliance is maintained under the Florida Surplus Lines Service Office Agent Procedures Manual.

Yes. Florida Statute requires entities engaging in any activity or employing individuals to engage in any activity which by law may be performed only by a licensed insurance agent to hold an agency license.

NOTE: An insurance agency owned and operated by a single licensed agent conducting business in their name and not employing or otherwise using the services of or appointing other licensees is exempt from the agency licensing requirement.

A Transaction in Question, or TIQ, is a transaction that has been received by FSLSO but does not meet one or more of FSLSO’s business rules, has not yet been accepted, and possibly has not been invoiced. If you receive a confirmation number that begins with a “Q,” please make the necessary corrections to the transaction or contact FSLSO if you need assistance. 

A Desk Review is a compliance review conducted by the Compliance Review analyst from their office. Information can be exchanged between the analyst and the agent through SLIP+, phone, email, or postal service. This type of review is better suited for Basic Reviews of agents with a limited number of policies to examine.

Applicable coverage codes: 

• 1000 Commercial Property
• 1001 Builders Risk - Commercial
• 1003 Apartments - Commercial
• 1005 Commercial Package
• 1006 Condominium - Commercial
• 1017 Collateral Protection (force placed coverage)
• 2000 Homeowners-HO-1
• 2001 Homeowners-HO-2
• 2002 Homeowners-HO-3
• 2003 Homeowners-HO-4 - Tenant
• 2004 Homeowners-HO-5
• 2005 Homeowners-HO-6 - Condo Unit Owners
• 2006 Homeowners-HO-8
• 2007 Builders Risk - Residential
• 2009 Dwelling Property
• 2010 Farmowners Multi-Peril
• 2011 Mobile Homeowners

State and governmental entities are NOT exempt and therefore are also assessable.

A desk review is a compliance review conducted by the Compliance Review analyst from their office. Information can be transferred between the analyst and the agent via phone, email, fax, or postal service. This type of review is better suited for Basic Reviews of agents with minimal policies to review.

An on-site review is a compliance review conducted in the agent’s office.

Florida law (F.S. 626.922 and 626.924) mandates specific information to be included on a surplus lines contract. FSLSO provides a Sample Face Page that contains all the required information.

All new and renewal policies effective prior to July 1, 2020, and any subsequent endorsements on those policies will still be taxed at the original rate of 5%.

For example, the tax rate for a policy, effective January 1, 2020, is 5% of the gross premium. An additional premium endorsement effective July 1, 2020 would also be taxed at 5%. If the policy is cancelled effective August 1, 2020, the tax credit is 5% of the returned premium.

Unbalanced Returned Premium (URP)
This TIQ indicates that a return premium transaction or cancellation transaction has been submitted with premium greater than the total premium submitted for that particular policy term. The Unbalanced Returned Premium (URP) TIQ is a financial TIQ. FSLSO staff members cannot manually accept financial TIQs, they can only be corrected and accepted by the user.

Unbalanced Returned Policy Fees (URF)
A transaction will be questioned if the policy fees submitted with a return premium transaction or a cancellation are greater than the total policy fees submitted for that particular policy term. The Unbalanced Returned Policy Fees (URF) TIQ is a financial TIQ. FSLSO staff members cannot manually accept financial TIQs, they can only be corrected and accepted by the user.

Tax Status 2 (TS2)
This tax status should only be used when insuring risks of the state government, counties, municipalities, or their agencies. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by an FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Tax Status 4 (TS4)
This tax status was specifically created for property policies covering hospitals that are members of an alliance. This tax status is exempt from the surplus lines tax, service office fee, and assessments. However, the EMPA surcharge applies. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by a FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Tax Status 5 (TS5)
This tax status was created for entities that are exempt from the surplus lines tax, service fee, assessments, and the EMPA surcharge but are required to be filed by law because they are premium-bearing. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by an FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Standalone Type 2 Transaction (SA2)
This TIQ occurs when an additional premium transaction has been filed, and no existing new business or renewal filing is present. The Standalone Type 2 Transaction (SA2) TIQ can only be corrected by the user.

Credit Verification (CV)
This TIQ occurs when a return premium or cancellation transaction has been submitted that meets certain guidelines set forth by FSLSO. The Credit Verification (CV) TIQ has to be worked by an FSLSO staff member, and documentation of the credit is required. If you receive a questioned transaction for this reason, you can be proactive and upload a copy of the endorsement in SLIP+ and submit it to FSLSO. If the documentation is not uploaded in SLIP+, an FSLSO staff member will email you for the documentation.

Extends Policy Expiration Date (EE2)
An EE2 TIQ occurs when an endorsement is filed that extends the policy expiration date for 365 days or more. The Extends Policy Expiration Date (EE2) TIQ was implemented to allow FSLSO to charge the most current premium taxes, service fees, and assessments. 

While extending the expiration date on an insurance policy is common practice, it can impact tax collection accuracy. Collecting the most current tax rate is critical when handling assessments for other state entities and protecting consumers. That is why we ask you to file a renewal transaction when extending the policy expiration date for 365 days or more, even if the insurer did not renew the policy. The rate charged is determined by the effective date of the most current new business or renewal transaction filed. 

For example, the Service Office fee has changed several times in recent years. In January 2020, the Service Office fee was 0.1% but changed to 0.06% for all new and renewal policies with an effective date on or after April 1, 2020. If an agent had a policy effective January 1, 2020-January 1, 2021 and extended the expiration date to January 1, 2022, by an additional premium endorsement, FSLSO staff would direct the filer to submit a renewal transaction effective the anniversary date of January 1, 2021, in order to update the Service Office fee to 0.06%. If an additional premium was filed, the Service Office fee would continue at 0.1% due to the January 1, 2020 new business transaction effective date. 

To correct an EE2 TIQ, you must change the endorsement transaction to a Renewal via SLIP+.

Please note: This TIQ type only occurs as a result of submissions made via Batch. The SLIP+ environment is programmed so this will not occur.

Certain coverage codes, such as motor truck cargo, ocean marine, and aviation, are exempt from the surplus lines premium tax and have a specific tax status. SLIP+ has been programmed to only allow each coverage code’s specific tax status, however Batch allows all tax statuses which will create this questioned transaction. Only the user can correct this questioned transaction.

Eligible Agency Not Found (NAY)
This TIQ occurs when a transaction is submitted with an agency that is no longer active in our database. The Eligible Agency Not Found (NAY) TIQ will need to be worked by an FSLSO staff member. Florida requires each place of business that engages in any activity that may be performed only by a licensed insurance agent to hold an insurance agency license. If the agency license number you are filing under is no longer active in our database, you will receive this questioned transaction.

There may be steps you need to follow to update your agency information. An FSLSO staff member will advise what steps need to be taken, if any.

Zero Premium (ZP)
This TIQ occurs when a transaction is submitted with a 0 in the premium field and a dollar value in the policy fee field. The Zero Premium (ZP) TIQ can only be accepted by an FSLSO staff member. An FSLSO staff member will review each ZP TIQ to determine the validity of the additional fee and either accept the questioned transaction or inquire further.

An FSLSO staff member will review each ZP TIQ to determine the validity of the additional fee and either accept the questioned transaction or inquire further.

Future Effective Date (FED)
Transactions that are submitted more than six months in advance of the effective date are questioned in order to verify the validity of the effective date. If you receive the Future Effective Date (FED) TIQ, verify the effective date of the transaction. Typically the user has made a simple error and entered the incorrect year. If this is so, edit the date. If the date is correct, contact an FSLSO Analyst to advise the date is correct, and we will manually accept the questioned transaction.

New Business Renewal (NBR)
This TIQ occurs when a new business and a renewal transaction are filed with the same effective date. The New Business Renewal (NBR) TIQ has to be corrected by the user before it can be manually accepted by an FSLSO staff member.

Invalid State Specified (ISS)
This TIQ only applies to multistate transactions and can be triggered for several reasons.

If a multistate Batch file with an initiating transaction effective on or after July 1, 2020, is submitted using any state allocations other than Florida or Non-Florida, it will be questioned. SLIP+ is programmed to only accept  Florida or Non-Florida after June 30, 2020. 

If an endorsement is filed on an initiating transaction effective on or after July 1, 2020, and the initiating transaction is subsequently backed out, it will be questioned. Once the initiating transaction is backed out, the endorsement becomes either a standalone type 2 transaction (SA2) or would be associated with an initiating transaction effective prior to July 1, 2020, triggering the ISS TIQ.

An initiating transaction effective prior to July 1, 2020 (i.e., June 1, 2020) and a subsequent endorsement effective after July 1, 2020 (i.e., July 15, 2020) are filed using state-by-state premium tax allocations. Then, an initiating transaction effective on or after July 1, 2020 (i.e., July 2, 2020) is filed on the same policy. The endorsement transaction will be questioned because it would now be associated with an initiating transaction effective on or after July 1, 2020, meaning the state allocation selections will need to be updated to Florida and Non-Florida.

Only the user can correct this questioned transaction.

If your agency name and license number are not in the Available Agencies box on the Settings page in SLIP+, contact Agent Services at agent.services@fslso.com and provide the following information:

• Agency Name 
• Agency License Number
• Agency FEIN 
• Agency Address 
• Agency Phone Number
• Agency Email

If the agency is licensed as required by the Florida Department of Financial Services, we will add the agency to our database.

It does not affect multistate policies with effective dates prior to July 1, 2020.

Multistate policies effective prior to July 1, 2020, with Florida as the home state, are taxed at 5% for the Florida portion and the applicable state tax rate for the other states. 

For example, if you have a Florida home state policy effective on June 30, 2020, broken out as follows:

• Florida = $5,000
• Georgia = $2,000
• Alabama = $2,000

It would be reported in SLIP+ as Florida = $5,000, Georgia = $2,000, and Alabama = $2,000.

Multistate policies effective on or after July 1, 2020, with Florida as the home state, are taxed at 4.94% for the Florida portion and 4.94% for the rest of the states, as well. 

For example, if you have a Florida home state policy effective on July 2, 2020, broken out as follows:

• Florida = $5,000
• Georgia = $2,000
• Alabama = $2,000

It would be reported in SLIP+ as: Florida = $5,000 and Non-Florida = $4,000.

Yes. Enter the policy number exactly as it appears on the declarations page from the carrier, including any special characters.