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October 31, 2018
What's Happening
Happy Halloween from FSLSO! We hope you all have a safe and spooky Halloween night.
We're Getting Wild, Weird, and Wacky on the PalmCast
On this episode, we speak with Mitchel Kalmanson of the Lester Kalmanson Agency.
Mitchel provides insurance for the “wild, weird, and wacky;” handling everything from zoos and circuses to pedicabs and algae.
His specialty is handling risks associated with exotic animals, a practice that has taken him all over the world. His depth and breadth of experience in this unique field makes for some very interesting stories.
Find us on iTunes, Spotify, and Stitcher.
Compliance Review Scores
The Compliance Review program conducted over 300 agent compliance reviews during the first three quarters of 2018. The majority of surplus lines agents scored in the 90th percentile in the Data* and Financial** categories.
However, we are seeing a downward trend in scores in the Regulatory*** category.
Here is what you and your staff need to know to avoid the most common non-compliance issue and ensure future compliance with Florida’s regulations.
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 UNCENSED 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,
- Citizen's Assessment (policies effective prior to 7/1/15),
- EMPA Surcharge ($2.00 for residential or $4.00 for commercial),
- Florida Hurricane Catastrophe Fund (policies effective prior to 1/1/15), and
- Surplus Lines Agent’s Countersignature.
Lastly, residential policies must also include the following language pertaining to out-of-pocket expenses.
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.
*Data Category:
Accuracy of non-financial data such as policy number, insured’s name, insurer’s name, etc.
**Financial Category:
Accuracy of financial data such as tax, fee, and assessment charges.
***Regulatory Category:
Accuracy of non-financial statutory requirements such as the information required on the face/front page of each Florida surplus lines policy, policy endorsement, diligent effort forms, and undocumented fees.
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Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.
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