Legislative Update

March 13, 2018

Bills

This year's legislative session finally wrapped up over the weekend, with several bills passing that will effect the insurance industry.

Below is a summary of the bills with the largest impact on the surplus lines insurance industry.

*NOTE: Governor Rick Scott has not yet signed any of these bills into law.

House Bill 465

A measure within this bill repeals a requirement that conflicted with federal law relating to the surplus lines insurer eligibility process.

All surplus lines insurer applications will now go straight to Office of Insurance Regulation.

Effective: Upon becoming law

House Bill 483

A measure within this bill amends the promotional and advertising regulations relating to gifts and charitable donations.

Under current law agents are only permitted to give clients or prospective clients gifts with a value limit of $25. These gifts are also limited to advertising merchandise with a company name on it (i.e. pens, coffee mugs, etc.).

This measure raises the value cap from $25 to $100 per year and removes restrictions as to the type of merchandise that can be given.

It also allows insurers and agents to make a charitable contribution in the name of a potential insured of up to $100 per year.

Effective: July 1, 2018

House Bill 1073

A measure within this bill amends s. 626.927 and s. 626.930, F.S. to eliminate the license category of Managing General Agent (MGA). The duties and responsibilities of an MGA will remain, as it will now be an appointment on a general lines license.

Those currently holding an MGA license will not be affected.

This bill also allows fingerprints to be valid for 48 months when applying for additional licenses.

Effective: July 1, 2018

*NOTE: For a complete analysis of these bills please click the above links.

Other items reported on in earlier editions of eNews (surplus lines tax change, state tax allocations, dwelling replacement cost for one diligent effort) were all removed from the respective bill before passage.