Florida Surplus Lines

GrowthAgent · Post by **GrowthAgent** » Wed Feb 06, 2008 6:24 am

Does anyone understand Surplus Lines in Florida? Who is obligated to file state taxes? Me as the agent or the wholesaler/surplus lines agent?

I don't have a surplus lines license in florida. Only a non-resident P&C license. I placed a GL policy with a wholesaler/surplus lines agent for one of my florida clients. Taxes were involved with the transaction (5% of premium). Who should file the taxes? Me or the surplus lines agent?

I don't think I can because I don't have a Florida surplus lines license.

Thanks.

SurplusFuss · Post by **SurplusFuss** » Wed Feb 06, 2008 8:13 am

You're correct, the surplus lines licensee has to report the taxes.

Edited to add:

The insured may also report, but that's usually in cases where the insured procures coverage directly from the unauthorized carrier.

TheInsKid · Post by **TheInsKid** » Wed Feb 06, 2008 1:53 pm

The retail agent is the one legally responsible to file due diligent forms and all tax filings (including assessments) in Florida and there are several and if you are selling business in FL (surplus lines) then you should be licensed otherwise you should use a wholesaler who has one and can file on your behalf, which is legal. However, the wholesaler should have quoted you the premium and either the taxes (all of them) or stated that you are solely responsible for said taxes and you were filing them as well. The wholesaler does not have to have a surplus lines license but it they don't then maybe you should start doing business with one that does.

Further, do not even go the so called "self procurement"

GrowthAgent · Post by **GrowthAgent** » Thu Feb 07, 2008 6:58 am

Thank you for the info.

It was my understanding that since I don't have a florida surplus lines license I cannot legally file the state taxes on my clients behalf.

The wholesaler is not required to have a surplus lines license?

I was a bit shocked that the wholesaler I dealt with didn't have a Florida surplus lines license either. My fault for not doing my diligence. The wholesaler markets a gl product for roofers that fit my clients needs. They broke out the premium, the tax and their fee. Now I'm just trying to figure out how to get the taxes filed. I don't want my client to do it.

TheInsKid · Post by **TheInsKid** » Thu Feb 07, 2008 4:47 pm

Only licensed FL surplus lines licensee can file taxes so you are correct you can not file the taxes. A wholesaler is not required to have a surplus lines license but in most cases they do acquire one for the states that they usually do business in, yours must not follow that rule of thumb, shame on them. By the way, filing the taxes and assessments are only part of this issue, there is due diligence requirements as well that you must meet.

Your client can not file the taxes legally on a direct basis, you and the wholesaler are already involved!!

You are going to have to find a licensed FL surplus lines agency or individual and see if they will file your taxes on your behalf and you are running out of time to meet deadlines.

SurplusFuss · Post by **SurplusFuss** » Fri Feb 08, 2008 7:59 am

I don't know if finding another surplus lines licensee would help. Florida doesn't accept courtesy filings.

TheInsKid · Post by **TheInsKid** » Fri Feb 08, 2008 3:33 pm

Nothing keeps you from splitting commissions with another licensed person who just happens to be a licensed FL surplus lines agent, then they can file the taxes!! Other way to consider is fine another broker who can place the risk with the same carrier (and they have a surplus lines license)and work with the current broker to make that happen if they can understand what position they put you in. You are running out of options as I see it and running out of time too, wish you best of luck.