November 13, 2019

Happening This Week

Invoices and Affidavits Due Now

All payments made in SLIP prior to 4:00PM EST are posted as of the following business day. Payments submitted after 4:00PM EST TODAY (Wednesday, November 13) will be posted on November 15.

With the fourth quarter of 2019 upon us and the year nearing its end, we wanted to take the opportunity to remind you about SLICE. Before we get into the holiday season, we encourage you to take the SLICE course.

SLICE - or Surplus Lines Information & Compliance Education - is designed for anyone who would like to become more knowledgeable about compliance with Florida surplus lines rules, procedures, filings, etc. There is a detailed module on filing in SLIP as well as primers on our Compliance Review and Premium Reconciliation programs.

SLICE is an excellent tool to help improve your Compliance Review and Premium Reconciliation results. 

Spotlight On:
Compliance Review

At FSLSO, we take our mission to facilitate compliance very seriously. One of the methods we use to do that is the Compliance Review Program, which was developed to help to facilitate compliance and provide educational assistance relative to the placement of surplus lines insurance contracts.

Compliance reviews are generally completed on resident and nonresident Florida surplus lines agents at least once every three years and include a basic verification of information such as:

• The policy premiums, tax, fee, and assessment calculations;
• Policy data verification;
• Retail agent information;
• Statutorily required disclaimers; and
• Diligent effort forms.

FSLSO analysts review all required information and provide a final report to the agent. This program is a way for agents to ensure they are conducting business in accordance with Florida surplus lines laws, as well as an opportunity to learn about new compliance tips and other helpful tools.

To learn more about Compliance Review, visit our website.

To see overall Compliance Review scores for quarters 1, 2, and 3, take a look at The Advisor, FSLSO’s quarterly, agent-centered newsletter.

If you have any other questions contact Agent Services at 800.562.4496, option 1 or email agent.services@fslso.com.

Headlines

Loss-Run Statements are a Win in House Committee

A House panel moved a bill that would let insurance consumers know their “loss-run” history. HB 269, filed by Rep. Daniel Perez, would require companies on request to provide a five-year “loss-run” history of claims against commercial insurance companies. If there is not five years of loss-run history, a complete record of claims and liabilities to insurers would be provided instead.

Underwriters Try to Keep Up With Today's Bustling, Successful E&S Market

Demand for surplus lines insurance rose dramatically in 2018 and is continuing to expand this year, so much so that some in the sector are feeling a bit overwhelmed. The excess and surplus lines sector is enjoying its largest growth rate - 11.2% - in years -thanks in great measure to standard carriers shedding business. The growth has also been fueled by the strong economy, changing technology, and weather catastrophes and wildfires.

The Evolution of E&S: How to Balance Carrier and Wholesaler Relationships

The wholesale distribution channel is deeply rooted within the E&S market. Agents have traditionally placed much of their business in this channel and wholesalers will maintain their staying power well into the future.  At the same time, access to E&S carriers via an in-house E&S broker is on the rise, as specialty insurers expand and enhance their E&S offerings to meet the demands of agents as they consolidate their placements. These carriers’ offerings can provide certain benefits that wholesalers may not be able to provide.

States Eye Private Flood Insurance Model Law Industry Thinks Is Unnecessary

A Florida lawmaker — Rep. David Santiago, R-Deltona — pitched the idea of adding provisions to NCOIL’s Flood Disaster Mitigation and Relief Model Act. Santiago said during a meeting in March that about 100,000 policyholders have switched to private flood insurance after the passage of reform legislation in 2015. The new law requires mortgage lenders to accept private flood insurance that is certified by the insurance department to be equivalent to the coverage offered through the federal program.

Global Reinsurance Market Survey Results Show ILS Usage to Rise

Artemis and Reinsurance News have partnered again to conduct our second global reinsurance market survey. The 2019 edition reveals an expectation for more pronounced and more broad price momentum at the key January 1st renewals, while use of insurance-linked securities (ILS) is once again expected to rise.

Insurance Summit: Jimmy Patronis Talks Hurricane Michael Claims

Florida CFO Jimmy Patronis said he won’t be happy until 100 percent of Hurricane Michael insurance claims are paid. On Monday, Patronis spoke to Florida Chamber of Commerce Insurance Summit attendees about the struggles of Panhandle residents still recovering from Hurricane Michael.

Insurers Likely to Grow Green Bonds

Recent issuances of green and sustainable debt by insurance companies represent the start of an emerging trend, said Michael Dunckley, assistant director, and Jessica Botelho-Young, senior financial analyst, both with AM Best.

Lloyd's of London in Huge Shake-Up

The world’s largest insurance market, which earlier this year was the focus of a major report into sexual harassment and daytime drinking, and which has been focusing on “modernization” with the launch of its Blueprint One a few weeks ago, is once again in line for a significant shake-up as it announces that its boards will be merged into one.

Mitigate Liability and Maximize Underwriting Results for Cannabis Clients

The cannabis industry is one of the nation’s fastest emerging business segments, and as more states move to legalize cannabis at some level, the need for rental property for cannabis operations will increase. For property owners in rural and inner-city areas who have struggled to maintain occupancy for years, leasing to cannabis businesses presents an opportunity for increased rental income and long-term leases. While leasing to cannabis operations may seem like a windfall opportunity, there is a lot for landlords to consider.

Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.

Facilitating Compliance Through Innovative Solutions

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