November 20, 2019
Happening This Week
Thanksgiving Hours
Turkey day is just around the corner! Next week FSLSO will be closed on:
Thursday, November 28
and
Friday, November 29
Regular business hours will resume on Monday, December 2.
Wanna Know More?
Questions about policy fees? Layered policies? SLIP?
Check out our recent video series, Surplus Shorts. These vignettes are short videos on different topics that regularly come up in conversations with customers. Our PalmCast host, Jordan Mauro chats with our knowledgeable FSLSO staff members about tips, tricks, and best practices.
If you have ideas for videos or podcast topics, feel free to tell us about it. Send an email to outreach@FSLSO.com.
Spotlight On:
Premium Reconciliation
As a part of our mission to facilitate compliance, we developed the Premium Reconciliation program in 2000 to verify transactions submitted to our office and identify any potential unfiled transactions.
Here’s how it works! Florida eligible surplus lines insurers submit policy information to our office, where then our system compares it against transactions filed by surplus lines agents/filers. For the insurer and agent/filer transactions to be automatically “matched”, several factors must meet specific criteria including policy number, premium amount, insurer name, and effective date.
For example, Agent A submits policy information on a Commercial Property policy that has been written through XYZ Insurance Company. The insurance company is, by Florida Statute, also required to file policy information regarding the Commercial Property policy written with Agent A. Both parties submit policy information for the risk, which is “matched” and reconciled within FSLSO’s database.
If there are transactions that do not “match” during the Premium Reconciliation process, you may be contacted by FSLSO staff to resolve the discrepancy.
The most common reasons which prevent an automatic match identified during the Premium Reconciliation process are:
Incorrect Policy Number
One of the matching criteria is the policy number. Sometimes extra characters are added such as letters, numbers, hyphens, and even spaces, which lead to an unmatched policy number. To avoid this, ensure that the policy number submitted to FSLSO is exactly as it appears on the declarations page of the policy as received by the insurer. This way, both the insurer and agent/filer are submitting the same policy number.
Incorrect Effective Date & Insured Name
Submitting the incorrect effective date also creates variances between the transactions. Use the exact effective date as listed on the policy and/or endorsement. This is also applicable to the insured’s name. When submitting the insured name, enter the entire name listed on the declarations page. Do not submit the “doing business as” (DBA) portion of the name. Having the correct insured name helps staff correlate the two transactions and potentially not have to reach out for further information.
Incorrect Insurer
It is a common mistake to find that the wrong insurer was selected when making the policy submission. Please be sure to select the insurer that is shown on the declarations page. If the policy has multiple insurers with premium associated with each, the filing should have each insurer and their portion of the premium broken out when making the submission to our office. While there are several insurers that have similar names, extra care should be taken when submitting the insurer’s name.
Incorrect Premium Amount
The last error commonly seen by the Premium Reconciliation staff are discrepancies between premiums submitted by the agent/filer and the insurer. Please make sure to submit the premium as it appears on the declarations page of the policy.
If you have additional questions about Premium Reconciliation, please contact Accounting at 800-562-4496, option 4 or email accounting@fslso.com.
Headlines
Florida’s New Consumer Advocate Tackles Open Hurricane Michael Claims
Florida’s new Insurance Consumer Advocate Tasha Carter has been busy since taking office August 1. With more than 12,000 Hurricane Michael claims still open, according to the Florida Office of Insurance Regulation, one of Carter’s top priorities has been to investigate the reason for the open claims from the devastating Category 5 storm and how the recovery process can be improved going forward.
Higher Reinsurance Costs May Boost ILS Use Among Carriers: A.M. Best
In a market environment where reinsurance capital increasingly wants to be paid a higher return for the risks it takes on, there is a growing chance that primary insurance carriers look to the capital markets, insurance-linked securities (ILS) and alternatives, according to A.M. Best.
Top Risks Facing Cannabis Industry in 2020 Not What You Think
On the tail-end of what turned out to be an extremely risky year for cannabis companies, one must wonder what 2020 has in store for a quasi-legal industry that is contending with a vaping crisis, contentious politics at all levels of government and ongoing financial concerns.
FEMA Says Costs Hinder Update of Flood Maps Reflecting Sea Level Rise
Despite heavy criticism from many coastal towns damaged by floods and sea level rise regarding FEMA’s (Federal Emergency Management Agency) outdated flood maps, the government agency says that the revision of flood maps is underway, but slowly due to cost constraints.
Lloyd’s CEO: Cultural Change is Hardest
While Lloyd’s expects 90% of its business to be digital by the end of 2020, cultural change is the hardest to achieve, said market CEO John Neal. He spoke with AM Best at the AM Best Insurance Market Briefing – Europe, held in London.
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