News from the Florida Surplus Lines Service Office
On September 30, 2011, The Florida Surplus Lines Service Office (FSLSO) sent notice of two changes. The first relates to the EMPA tax (Emergency Management Preparedness Assistance). As of October 1, 2011 this tax gets paid to the Florida Division of Emergency Management as a result of name changes and reorganizations implemented by the Governor. The change will appear on the third quarter billing as “DEM EMPA Surcharge”.
Second, OIR has determined that Professional Liability is a subset of Errors and Omissions coverage (a commercial class coverage) and it may now be sold in the surplus lines market without having to conduct due diligence. The insured must however sign the following notice:
You are agreeing to place coverage in the surplus lines market. Superior coverage may be available in the admitted market and at a lesser cost. Persons insured by surplus lines carriers are not protected under the Florida Insurance Guaranty Act with respect to any right of recovery for the obligation of an insolvent unlicensed insurer.
Feel free to contact any member of our insurance team for additional questions.