December 12, 2019
Happening This Week
Lunch & Learn
Lunch & Learn is our small group training program. Our training team will come to your office and conduct a training session tailored specifically to the needs of you and your staff.
When we launched the program last year, we were not sure what to expect, but the response was overwhelming and exceeded our expectations. Much of our time this year was spent visiting agencies for Lunch & Learn sessions, and we are thrilled to continue this program in 2020.
We are in the process of scheduling Lunch & Learn sessions for 2020. To schedule your session, send an email to outreach@fslso.com.
Spotlight On:
Sample Face/Front Page
One of the most common regulatory compliance issues we see is a missing or incomplete policy face or front page.
Here are some pointers on the policy face page for your review.
Florida requires agents to include specific information on the outside, front, or first page of all surplus lines policies.
(1) Each surplus lines agent through whom a surplus lines coverage is procured shall write or print on the outside of the policy and on any certificate, cover note, or other confirmation of the insurance his or her name, address, and identification number and the name and address of the producing agent through whom the business originated and shall have stamped or written upon the first page of the policy or the certificate, cover note, or confirmation of insurance the words:
THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER.
(2) Surplus lines policies issued on or after October 1, 2009, shall have stamped or printed on the face of the policy in at least 14-point, boldface type, the following statement:
SURPLUS LINES INSURERS’ POLICY RATES AND FORMS ARE NOT APPROVED BY ANY FLORIDA REGULATORY AGENCY.
Per Florida Statute 626.922 and the FSLSO Agent Procedures Manual, the following information must also be included on the face page of the policy:
- Policy Premium,
- Policy Fee,
- Inspection Fee,
- Florida Tax,
- FSLSO Service Fee,
- Citizens Assessment (only applies to policies effective prior to 7/1/15),
- EMPA Surcharge ($2.00 for residential or $4.00 for commercial), and
- Surplus Lines Agent’s Countersignature.
Lastly, personal lines residential property insurance policies must also include the following language, if applicable to that policy.
THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE OR WIND LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.
THIS POLICY CONTAINS A CO-PAY PROVISION THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.
We created a downloadable Sample Face Page to use as guidance to ensure statutory compliance. This page contains all the information required to appear on each surplus lines policy.
Headlines
FSLA Video: "What is Surplus Lines Insurance?"
"Surplus lines" have a lower profile in the insurance world, but their role is huge. They support Florida behind the scenes every day. This short video explains how surplus lines complement the broader insurance marketplace. They help fill in the holes, so Florida is covered.
What New Sea Level Rise Projections Mean for the Florida Keys
New sea-level rise projections for South Florida show an alarming trend: higher waters are coming faster than previously expected. According to the Southeast Florida Climate Compact, seas could rise between one foot and two-and-a-half feet by 2060 – two to five inches more than 2015 projections.
Insurers Pay $4.1M in Claims During Recent Hurricane Michael Claims Villages
Claims villages hosted by the Florida Department of Financial Services since August 2019 have led to the resolution of $4.1 million in insurance claims for nearly 750 residents impacted by Hurricane Michael, according to a statement from DFS.
Property/Casualty Insurance Sector Outlook Stable for 2020
Moody’s Investors Service’s outlook for the global property/casualty insurance sector remains stable for 2020 as economic growth, good capitalization and increased prices help buoy insurers.
Florida AoB Reforms Prompt Homeowners Discounts from Kin Insurance
Kin Insurance, a US insurtech and primary carrier focused on home insurance for catastrophe-exposed areas, has announced two new discounts for Florida homeowners, which it says were made possible by recent reforms to assignment of benefits (AoB) laws.
Cannabis Market in the US is Growing Like a Weed
Accordingly, the insurance market for this emerging sector is booming, though it’s not without its challenges, such as a tighter amount of capacity compared to most lines due to regulation. To help insurance professionals navigate this evolving space, Insurance Business America is bringing its Cannabis Cover Masterclass to Denver and Los Angeles in March 2020.
Facilitating Compliance Through Innovative Solutions
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