Florida Surplus Lines Service Office Board of Governors’ Meeting

 

On Wednesday, January 16, 2008, a representative of this firm attended the Florida Surplus Lines Service Office (“FSLSO”) Board of Governors’ meeting. Below is a brief recap of the activities and discussion that took place.

To view the notice for this meeting, click here.

Following the anti-trust preamble and the adoption of the previous meeting minutes, Gary Pullen, Executive Director, provided the Executive Director’s Report, which was approved by the Board. He included a review of federal legislative activities, legal issues and Florida legislative proposals.

Regarding federal legislation, he noted that the FSLSO opposes any federal legislation regulating the placement and taxation of multi-state surplus lines policies. Alternatively, the FSLSO would support a voluntary, state-based solution.

He also updated the Board regarding pending litigation on the issue of whether the delivery of a policy to an insurer is satisfied when the surplus lines company provides the policy to an agent. Currently, there is no time frame for a decision.

Regarding Florida legislation, the Board approved a proposal that would change Section 626.931, F.S. to eliminate the requirement for agents to submit a quarterly affidavit to the FSLSO and revise the timeframe and requirements for insurer reporting. Mr. Pullen reported that the current requirement is burdensome and the information is not used.

During the Financial Report, in light of the recent State Board of Administration investment troubles, it was positively noted that the FSLSO has no investments in the sub-prime market. The Board approved the Financial Report.

During the Agent Services Report, it was noted that there are 152 new agents registered with the FSLSO. Also, there is a need for an insurer who is able to write a poultry farms policy. The Board approved the Agent Services Report.

The next FSLSO Board meeting is scheduled for April 14, 2008.

Should you have any questions, please feel free to contact this office.