Diligent Effort Requirement Repealed for Surplus Lines Placement in Late Passing Bill

Following negotiations between the House and Senate in the final days of the legislative session, House Bill 1549: Financial Services has been approved and is now headed to the Governor for signature. The bill repeals the requirement for a diligent effort when placing business in the surplus lines market. Other provisions of the eligibility to export law remain unchanged.

Additionally, the bill introduces new language that must be included on the disclosure form, which the insured is required to sign. This language explicitly states: “Surplus lines insurers’ policy rates and forms are not approved by any Florida regulatory agency.” If the insured signs the acknowledgment of this disclosure, it is presumed that the insured has been informed and is aware that alternative coverage options may be available.

Subject to the Governor’s signature, the bill will become law, with an effective date of July 1, 2025.

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