October 26, 2023
FSLSO On the Road
Last week, the FSLSO leadership team attended WSIA’s Fall Surplus Lines Law Group in Chicago, hosted by the Surplus Line Association of Illinois.
This week, the FSLSO accounting team attended the Financial Reporting Insurance Forum (FINREP) in Clearwater, Florida. FINREP helps us ensure best practices and learn about fresh ideas relating to finance in the insurance sector.
Next week, on November 2, FSLSO’s own Felicia Meredith is leading a webinar for the Professional Insurance Agents (PIA) of Florida. She will be discussing tools and tips for retail agents, surplus lines licensing, and market trends.
November 15 through 18, our team will be in Columbus, Ohio, for the National Council of Insurance Legislators (NCOIL) Annual Meeting.
EMPA Surcharge School
The Emergency Management Preparedness and Assistance (EMPA) trust fund exists to fund emergency management, preparedness, communication, and training.
What coverages are subject to EMPA?
- 1000 Commercial Property
- 1001 Builders Risk – Commercial
- 1003 Apartments – Commercial
- 1005 Commercial Package
- 1006 Condominium – Commercial
- 1017 Collateral Protection (force placed coverage)
- 2000 Homeowners – HO-1
- 2001 Homeowners – HO-2
- 2002 Homeowners – HO-3
- 2003 Homeowners-HO-4 – Tenant
- 2004 Homeowners-HO-5
- 2005 Homeowners-HO-6 – Condo Unit Owners
- 2006 Homeowners – HO-8
- 2007 Builders Risk – Residential
- 2009 Dwelling Property
- 2010 Farmowners Multi-Peril
- 2011 Mobile Homeowners
How much is the surcharge?
Residential policies - $2.00
- Commercial policies - $4.00
PLEASE NOTE: EMPA is only applicable to policies with an effective date on or after January 1, 2006
Are there exemptions?
No. State and governmental entities are NOT exempt from the EMPA Surcharge.
To learn more about the EMPA surcharge and other fees and taxes, check out the Tax, Fee, and Assessment table on FSLSO.com.
Compliance Review Refresher
Every three years, surplus lines agents are subject to a Compliance Review. These reviews include a basic verification of information such as the policy premiums, tax, fee, and assessment calculations, statutorily required disclaimers, and diligent effort forms.
The following documentation must be provided for selected policies being reviewed.
- Complete policy declaration page
- Diligent Efforts forms
- Endorsements
- Policy face or front page
- Invoices
- Inspection report or invoice
- Membership agreement
- Any other applicable supporting documentation.
To learn more about Compliance Review preparation, check out the Compliance Review checklist.
HEADLINES
CFO Patronis on Special Session: We’re Going to Put Policyholders First
Florida Chief Financial Officer (CFO) Jimmy Patronis issued a statement on the upcoming special session that will, among other items, address funding for the My Safe Florida Home Program.
Combatting the Rise of the Zombie Condos in Florida
A troubling trend is on the horizon for condominium ownership in Florida—the potential rise of “zombie condos.” A zombie condo consists of an association operating in a quasi-functional, ultimately wasteful limbo, struggling to maintain a barely habitable condominium in an unaffordable manner.
Hurricanes Now Twice as Likely to Spin Up From Minor to Whopper, Study Says
With warmer oceans serving as fuel, Atlantic hurricanes are now more than twice as likely as before to rapidly intensify from wimpy minor hurricanes to powerful and catastrophic, a study said Thursday.
Caught in Financial Storm, P&C Insurers Turn to Reorg, Layoffs
Some of the costliest periods of natural catastrophes, rising accident claims and persistent inflation, have conspired to inflict turmoil for P&C insurers, leading to huge underwriting losses, reorganizations, and layoffs.
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Have questions? Contact us at 800.562.4496, option 1 or email Agent.Services@fslso.com.
