May 1, 2019
Happening This Week
Mark Your Calendar
Wednesday, May 15 is the due date for:
- First quarter affidavits
- First quarter invoice payments
All items can be filed and paid in your SLIP account.
Friday, May 31 is the due date for updated catastrophe contact information.
This can be done in your SLIP account.
50!
We now have 50 SLICE graduates. Thank you for taking the time to upgrade your compliance skills.
We will be holding a drawing for a $100 American Express gift card very soon. We will announce the winner on the next episode of our podcast, FSLSO PalmCast.
Stay tuned.
Q1 Top Grossing Agencies
Congratulations to the top-grossing agencies for the first quarter!
Drill down into much more on our Market Data portal on FSLSO.com. There you will find top insurers and top coverages statewide, as well as by county. You can also browse through insurer financial data.
Visit the Market Data portal to see a snapshot of the current surplus lines market in Florida.
Legislative Update
This week marks the last week of the regularly scheduled legislative session.
Recent Action
Senate Bill 538 is still waiting on a vote by the full Appropriations Committee. House Bill 387 (SB 538's companion) is still awaiting review by the Senate.
House Bill 301 is being reviewed by three Senate committees: Banking and Insurance, Judiciary, and Appropriations. The companion bill, Senate Bill 714 is set for second reading in Appropriations and was placed on the Special Order Calendar for today.
Summaries
Senate Bill 538 / House Bill 387:
- Removes the $35 per policy fee cap. A fee will still be permitted as long as it’s "reasonable" and must be made clear to the customer before policy purchase and must be separately stated before policy purchase so that the retail agent and the customer can see it clearly.
- Removes the quarterly affidavit requirement, as it has become obsolete due to technological advances.
Helps ensure private flood insurance in Florida continues to thrive.
House Bill 301 / Senate Bill 714 decreases the residential structure dwelling
replacement cost to $700,000 (from $1 million) as it relates to Diligent Effort procedures.
PLEASE NOTE: These bills are still moving through the legislative process. They have not fully passed the legislature and are not signed into law.
Personnel Note
Longtime FSLSO Insurance Analyst, Lisa French has retired.
Lisa has been a fixture at FSLSO for decades and is known for her exceptional and superb customer service. An expert on everything surplus lines insurance related, she became the go-to problem solver for any matter that came up. Her knowledge and skillset will be missed; however, Mrs. French will continue working with us outside the office, on a contract basis.
Lisa, thank you for 20 years of outstanding service! We wish you well and congratulations on retirement.
We will miss you!
Headlines
Opinion: Surplus Lines Insurance Protects Businesses From Cyber Threats
I am a surplus lines insurance wholesale broker. The job description is a mouthful, but what I do is simple: I help protect Florida businesses, so they can do what they do best.
Surplus lines brokers have a lower profile in the insurance world, but their role is huge. They support businesses behind the scenes every day. This type of insurance is needed when other, more traditional carriers do not have the knowledge or specialty expertise on how to cover a particular risk. One of those risks — a growing one — is cybersecurity.
While our primary focus at Socius Insurance over the past 15 years has been management and professional liability, cyber liability had been a lesser needed product. But its importance has come into the spotlight over the past five years.
The reason: hackers.
Cancellation and nonrenewal requirements applicable to insurance policies exist in every state in the nation. These laws and regulations are founded on the principle that insurance customers should be protected against losing insurance coverage without proper notice and without good reason.
As such, many states require that mid-term cancellation of an insurance policy only be effectuated for specific statutorily-defined reasons, and that sufficient advance notice must be given to the insured prior to the cancellation or nonrenewal of an insurance policy.
Artificial Intelligence (AI) is big news in drones – because drones generate big data. Many drone data processing platforms claim AI-power, but AI is moving to all aspects of the industry: including drone insurance.
Dr. Ernest Earon (former CTO and co-founder at PrecisionHawk) is now the EVP of Artificial Intelligence at DroneInsurance.com, a flexible, on-demand insurance product for drone operators, provided by leading insuretech company REIN. Dr. Earon, on behalf of REIN, is also now the chair of the data division of the FAA’s Unmanned Aircraft Safety Team.
Consortium to Offer Insurance and Crisis Management Solution to Mitigate Reputational Risk
Specialist Lloyd’s insurer Beazley is partnering with other Lloyd’s insurers to offer a unique and flexible solution to an issue that has long preoccupied the C-suite: reputational risk.
A reputational crisis can affect an organisation in many ways, hitting revenue, the ability to hire and retain talent, and the support of stakeholders.
In an era in which social media amplifies every crisis, the rapid dissemination of information – true or false – demands an urgent and co-ordinated response. Having the right approach in the early stages of a crisis can often forestall further damage.
In response to this challenge, Beazley has established the Custodian Consortium at Lloyd’s to provide a reputational risk solution that protects clients throughout the lifespan of a crisis. Clients will benefit from crisis management expertise to minimise reputational damage, as well as substantial loss of profits cover to protect companies after a significant downturn in revenue.
www.fslso.com
Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.
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