Florida Gov. Scott Signs Surplus Lines Bill

Florida is prepared to join other states around the country in bring its surplus lines business in line with the federal Nonadmitted and Reinsurance Reform Act.

Governor Rick Scott signed SB 1816 into law authorizing the Florida Office of Insurance Regulation to enter into a multi-state agreement for the collection of non-admitted insurance taxes as outlined by the NRRA.

In addition to the tax sharing provision, SB 1816 includes changes that affect all of Florida’s surplus lines agent community. With regards to agent invoicing procedures, SB 1816 provides that the billing and payment of Florida Surplus Lines Service Office fee will be moved to a quarterly basis which aligns it with the current tax and assessment billing cycle. It amends the payment schedule for Independently Procured Coverage policies to quarterly, as well.

Additionally, the bill aligns the filing deadline for Florida surplus lines agents’ quarterly report affidavit with the payment of all surplus lines taxes, fees and assessments, requiring the filing to be made on or before the 45th day following each calendar quarter.

For multi-state policies effective on or after July 21, 2011, surplus lines agents will file the total policy premium with the home state of the insured as per the NRRA. SB 1816 provides that for multi-state risks for which Florida is the home state, the total policy premium will be taxed at the rate of the state where the risk or exposure is located. This provision is specific only to taxes; Florida assessments and fees will be charged on the gross premium of the multi-state risk.

Topics Florida Excess Surplus