Florida Surplus Lines Service Office Fee Decreased
Dec 14, 2016
In Bulletin 2016-04 issued today, December 14, 2016, the Florida Surplus Lines Service Office (“FSLSO”) advised Florida Surplus Lines Agents, Surplus Lines Insurers and Independently Procured Coverage Filers that its service fee will be decreased from 0.15 percent to 0.1 percent effective April 1, 2017.
All new and renewal policies with an effective date on or after April 1, 2017 will incur a service fee of 0.1 percent of the total gross premium as defined in Florida Statute 626.9325. The service fee percentage charged on the premium is based on the effective date of the policy; the FSLSO service fee is charged on all applicable Florida policies.
The service fee for all endorsements, audits, installments, cancellations or return premium transactions applicable to policies effective prior to April 1, 2017 will be the same percentage as the inception date of the policy being endorsed.
The FSLSO provided the following examples:
EXAMPLE ONE: The service fee for a policy with an effective date of January 1, 2017 is 0.15 percent of the total gross premium. An additional premium endorsement to the policy with an endorsement effective date of June 1, 2017 is 0.15 percent. If a cancellation takes place with an effective date of August 1, 2017, the service fee credit is 0.15 percent.
EXAMPLE TWO: The service fee for a policy with an effective date of April 1, 2017 is 0.1 percent of the total gross premium. An additional premium endorsement to the policy with an effective date of June 1, 2017 is 0.1 percent. If a cancellation takes place with an effective date of August 1, 2017, the service fee credit is 0.1 percent.
Again, the service fee percentage charged on the premium is based on the effective date of the policy.
Business rules for calculating the correct service fee will be programmed into the FSLSO’s management system. No changes need be made for SLIP or XML batch filing, however, those affected by the change may need to contact their agency’s information technology vendor or staff regarding needed revisions to their agency management system that may be necessary to calculate the revised service fee.
FSLSO’s Tax Estimator provides instant access to the most current tax rates and is available in a mobile application for Apple or Android devices. To use the Tax Estimator, visit www.fslso.com/estimate.
FSLSO also provides a free Tax Estimator web service application for businesses desiring to make the Tax Estimator available from their internal agency management system or third-party Web site.
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