Compliance Review
To make this easier for you, we developed the Compliance Review Checklist. This list lays out everything we will check for during your review.
The following elements will be reviewed during a Compliance Review:
1. Documentation
- Surplus lines agent license
- Policy Declaration pages
- Diligent Effort forms
- Endorsements (if requested)
- Policy Face or Front Pages (if applicable)
- Invoices
- Inspection Report (if applicable)
- Membership Agreement (if applicable)
- Documentation to support any fees charged in addition to the surplus lines agent policy fee (if applicable)
2. Policy Review Data Elements
- Policy number
- Name of insured
- Transaction type
- Insurer
- Coverage code
- Policy period
- Premium
- Policy fees
- Inspection fees, membership fees, etc.
- Premium tax
- FSLSO Service fee
- Citizens' assessment fee (if one is in place)
- EMPA surcharge
- Florida Hurricane Catastrophe Fund (if one is in place)
- Disclaimer language
- Producing/retail agent name and address
- Surplus lines agent name, license number, address and signature
Failure to provide information on time (per F.S. 626.930 (2)) could result in administrative action by the Department of Financial Services (DFS), and possible suspension or revocation of the agent’s license.
Per F.S. 626.930 (2) all records shall at all times be open to examination by the Department of Financial Services or the Florida Surplus Lines Service Office without notice and shall be so kept available and accessible for five years following the expiration or cancellation of the contract.
According to F.S. 626.923, a surplus lines agent shall, within 30 days after the date of a request by the Department or the Florida Surplus Lines Service Office, furnish an exact copy of all requested policies, including applications, certificates, cover notes, or other forms of confirmation of insurance coverage or any substitutions or endorsements.
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 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.
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.
If you have additional questions regarding compliance review, please contact:
Kristen Gray
800-562-4496, ext. 110
kgray@fslso.com