March 20, 2019

Happening This Week

Reminder: FHCF Assessment Ends 3/31

If you have any outstanding endorsements to policies which were effective between January 1, 2007 and December 31, 2014, when the FHCF assessment was applicable, they need to be filed no later than March 31, 2019. Effective April 1, 2019, any submissions previously filed where the FHCF assessment was applied that may have current endorsements to be filed, will not have the FHCF assessment charged or returned.

Example:

Our office will invoice for first quarter submissions on Monday, April 1, 2019. All payments are due no later than May 15, 2019 and any refund requests for FHCF credits must be received by our office no later than April 30, 2019. 

For more information and further instructions, read issued bulletin or contact the FSLSO Accounting Department at 800-562-4496, option 4, or accounting@fslso.com.

Face Value

The policy face page is a valuable piece of every surplus lines policy for insureds and per Florida law, it must include a number of items. Some of the more common items omitted include:

Listing the agency name or administrative professional assigned to service the account does not comply with the statutory requirement. 

To ensure all the required information is disclosed, see our Sample Face Page. 

Inside the SLIP Compliance Checkup Dashboard: QUARTERLY AFFIDAVIT

The Quarterly Affidavit widget is located in the middle of the bottom row of the dashboard.

This widget is designed for agents only. Agents that have reported transactions within a quarter must file a Quarterly Affidavit.

This Quarterly Affidavit widget will let an agent know if an affidavit is due or not. If an affidavit needs to be filed the widget will tell the agent when it is due each quarter.

Just like the other widgets, there is a color system to keep agents aware of upcoming due dates.

If the agent reported transactions in the previous quarter and the current day is:

• Between 0 and 30 days following the end of the quarter, the color will be green and there will be a green check mark displayed ;
• Between 31 and 45 days following the end of the quarter, it will display as gold; and
• 46 days or more following the end of the quarter, it will display as red, at which time these Quarterly Affidavits are considered late.

Within this widget there is a, “File Now” button that will take the user directly to the Affidavit screen under the Reports tab. This button will only be enabled in agent accounts. If the account is a sub-account of the agent, the button will not be enabled.

Quarterly affidavit due dates are as follows.

• Quarter 1 is due May 15.
• Quarter 2 is due August 14.
• Quarter 3 is due November 14.
• Quarter 4 is due February 14.

Headlines

House ‘AOB’ Changes Clear Another Hurdle

Though details differ, the House and Senate are continuing to move forward with proposals that would revamp the controversial insurance practice known as “assignment of benefits.” The House Insurance & Banking Subcommittee approved a bill (HB 7065), sponsored by Rep. Bob Rommel that would place limits on attorney fees in so-called AOB disputes and make a series of other changes.

The House vote came a day after the Senate Judiciary Committee approved a Senate version (SB 122), sponsored by Sen. Doug Broxson. Rommel said abuse of the AOB process is causing increased property-insurance rates for homeowners across the state. “If you own a home, you’re paying a higher premium because of bad actors,” Rommel said.​

Industry Awaits Florida Supreme Court Decision on Post-Loss AOB Policy Language

As Florida lawmakers weigh reform for the state’s assignment of benefits crisis, the insurance industry and regulators are closely monitoring a case addressing post-loss policy language that is currently before the state’s high court.

Initial briefs are being filed in the case of Restoration 1 of Port St. Lucie vs. Ark Royal Insurance Company, (SC18-1624) after the court agreed to hear the case at the end of 2018 in response to the plaintiff’s appeal of Florida’s Fourth District Court of Appeal decision finding an insurer’s anti-assignment provision was not prohibited.

CFO Jimmy Patronis: Congress Must Act to Reauthorize Flood Insurance Program

With the U.S. House Committee on Financial Services holding a hearing this week on the National Flood Insurance Program (NFIP), Florida Chief Financial Officer (CFO) Jimmy Patronis urged federal leaders to reauthorize the Florida subsidized program.

CFO Jimmy Patronis said, "With less than three months until Hurricane Season begins, Congress must act to reauthorize the National Flood Insurance Program. Flooding isn't just a hurricane season problem: the aftermath of Hurricane Michael continues to trigger flooding for parts of Northwest Florida because debris has clogged rivers.

Bipartisan Bill Introduced to Boost Flood Mitigation Funding, Lower Premiums

Florida Congressman Charlie Crist (D-St. Petersburg) introduced legislation designed to drive down flood insurance premiums by creating a low-interest loan program to help property owners better flood-proof their homes and businesses, protecting property and ultimately reducing post-disaster claims and recovery costs.

Federal Disaster Assistance Approaches $1 Billion For Hurricane Michael

Five months after the disaster declaration for Hurricane Michael, Floridians have received more than $957 million in federal disaster assistance in the form of grants, loans, and insurance payments.

Charles McAlear, a Founder of NAPSLO, Dies

Charles A. McAlear, a founder of the National Association of Professional Surplus Lines Offices, died Tuesday at age 87 at his home in South Haven, Michigan.

The cause of death was not disclosed. Mr. McAlear was NAPSLO’s first president, serving two one year-terms in 1975 and 1976, according to a spokeswoman for the Kansas City, Missouri-based Wholesale & Specialty Insurance Association, which was created with NAPSLO’s 2017 merger with the American Association of Managing General Agents.

What the New El Niño Forecast Means for Hurricane Season

The long-forecast El Niño finally emerged full-fledged in February and now forecasters are giving it a 60 percent chance to persist through summer.

The Climate Prediction Center’s latest forecast, which was released Thursday, gives the global climate pattern a 50 percent chance to persist into the fall.

For Florida, the periodic warming of the equatorial Pacific Ocean can mean a less active hurricane season with fewer of the powerhouse Cat 5 tropical cyclones known to build during the peak months of August through October.

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

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