Compliance FAQs

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.

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.

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.

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. 

If you have additional questions regarding compliance review, please contact:

Felicia Meredith
800-562-4496, ext. 105
fmeredith@fslso.com

If the policy period is extended for 365 days or more and all original terms and conditions remain, the additional premium endorsement must be filed as a renewal transaction in SLIP+. Filing a renewal for policy extensions allows the policy to be charged the appropriate tax, Service Office fee, and assessment rates (if applicable) for the new policy period. The insurer is not required to issue a policy renewal since this is for SLIP+ filing purposes only.

For example, if the original policy term is January 1, 2022, through January 1, 2023, and an endorsement is issued that extends the policy expiration to January 1, 2024. You should file the extension endorsement as a renewal transaction in SLIP with an effective date of January 1, 2023, and an expiration date of January 1, 2024.

The only exception is when the endorsement is an extended reporting period (ERP) endorsement, also known as "tail coverage." These endorsements are typically associated with claims-made liability policies. When submitting ERP endorsements in SLIP+, please file the endorsement within the original policy term and do not extend the expiration date.

To edit data on a previously filed transaction, follow the instructions below.

1. Select Search & Manage Policies from the Filings tab.
2. Enter the previously filed policy number or other search criteria in the appropriate field(s) and click Search.
3. Click on the policy number in the left column labeled Policy Number.
4. In the Transaction Details section, find the transaction you wish to edit and click the three vertical dots to the far right, then choose Edit, which will take you to the Coverage & Transaction Information page.
5. Make the necessary changes and click the Review button at the bottom right.
6. A System Warning window will display advising the edit is going to create a backout transaction. Select YES to proceed.
7. Review the transaction information and if all is correct, click the Submit Filing button on the bottom right.

This will take you back to the Policy Details screen, where your edited transaction will be listed.

To edit policy information on a previously reported policy, follow the instructions below.

1. Select Search & Manage Policies from the Filings tab.
2. Enter the previously filed policy number or other search criteria in the appropriate field(s) and click Search.
3. Click on the policy number in the left column labeled Policy Number.
4. You are now on the Policy Details page. Click the Edit link on the top right of the Policy Information section.
5. Make the necessary changes and click the Save button on the top right of the Policy Information section.

Policy-level changes will not result in automatic backouts.

To update your contact information in SLIP+, follow these instructions:

1. Click on the user’s name in the top right of the SLIP+ screen and select Settings from the drop-down.
2. Choose Contacts from the left side menu.
3. Click Edit on the right side of the screen.

If the insurer on the policy is not available in the drop-down menu, they may be added by selecting the Edit Insurer List link below the drop-down. Once you find the insurer on the Available Insurers list, click the “>” to add it to the Selected Insurers list. Then click Save.

No. Non-premium-bearing transactions are not required to be filed with our office. Florida regulations require all premium-bearing policy transactions placed with an eligible surplus lines insurer, taxable or non-taxable, to be electronically submitted to the FSLSO within 30 days from the effective date of the transaction.