Compliance Review Program

About the Program


The Mission of the Service Office is to facilitate compliance. In keeping with our mission, the Compliance Review program was developed to help ensure fairness and conformity with the Florida surplus lines law by monitoring and evaluating data submissions. Compliance reviews are generally completed on resident and nonresident Florida surplus lines agents at least once every three (3) years. Reviews include a basic verification of information such as the policy premiums, tax, fee and assessment calculations, production ledgers, statutorily required disclaimers, diligent effort forms, etc.


Purpose

The purpose of the review is to ensure 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 marketplace.


Notice of Intent to Review

A notice of intent to review records is forwarded to each agent via email, as advanced notice of an impending review. Within 5-7 days of notification of intent to review, the agent is contacted to schedule the review date. Once a review date is established, an analyst forwards a detailed list of surplus lines policies selected for review. The review is designed to verify information that the surplus lines agent is responsible for reporting to FSLSO, as well as other information required to be maintained in order to comply with the surplus lines law.


Review Requirements

In order for the compliance review analyst to perform their duties, a desk/table, chair, telephone and power outlet are necessary. 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 agent: Surplus lines agent or agency production ledgers for the last three (3) years in an electronic format (Excel); policy records relating to policies from the past three (3) years (policy declarations, invoices to policyholders, inspections, diligent effort forms, etc).


Frequency

FSLSO may review all, but not limited to, the information filed with the office as part of the compliance review process. All resident and nonresident Florida licensed surplus lines agents are subject to a compliance review at least once every three (3) years or as deemed necessary by FSLSO.


Final Report

Within thirty (30) days of the review, the surplus lines agent will receive a final report from FSLSO. The surplus lines agent may be required to submit, within thirty (30) days of receipt of the final report, a response/corrective action plan to address any non-compliance issues noted in the final report. For a quick guide, download our Compliance Saver.