Surplus Lines Broker ($50,000) Bond - Statewide in Florida

Brief Summary

There is nothing to buy. Florida repealed the surplus lines agent's bond effective October 1, 2012. No bond is required to get or keep a Florida surplus lines agent license, and the Department of Financial Services does not ask for one. If someone quoted you a $50,000 Florida surplus lines bond, they quoted a statute that has been off the books since 2012.

Florida no longer requires a surplus lines agent bond. Section 626.928, Florida Statutes, required a bond in the penal sum of not less than $50,000 aggregate liability, and it was repealed by chapter 2012-209, Laws of Florida, effective October 1, 2012. The current licensing statute, Section 626.927, contains no bond requirement, and the Department of Financial Services checklist for the resident surplus lines license does not list one.

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How to Apply for a Surplus Lines Broker ($50,000) Bond:

• Do not buy a bond. Confirm this first, because the requirement was repealed effective October 1, 2012.
• Hold a Florida resident general lines insurance agent license.
• Complete one of the three qualifying paths: the 60 hour approved surplus and excess lines course within four years of applying, one year of full time responsible insurance duties for a licensed surplus lines agent, or one continuous year of equivalent resident licensure in a reciprocal state with application within 90 days of becoming a Florida resident.
• Pass the surplus lines examination unless you passed it within the year before applying.
• Appoint yourself after licensure and pay the $150 appointment fee, renewing every 24 months.
• File the quarterly affidavit with the Florida Surplus Lines Service Office on or before the 45th day after each calendar quarter.
• Remit the 4.94 percent premium receipts tax with that quarterly filing.

Detailed Information About the Florida Surplus Lines Broker ($50,000) Bond:

The bond was repealed in 2012

Section 626.928 was titled Surplus lines agent's bond. It required a bond in the penal sum of not less than $50,000 aggregate liability with an authorized corporate surety approved by the department, conditioned on the agent faithfully conducting business under the license in accordance with the Surplus Lines Law and promptly remitting taxes. The department could require a larger bond based on the agent's volume of business, and the bond could not be terminated on less than 30 days prior written notice to the licensee filed with the department.

All of that is gone. Chapter 2012-209, Laws of Florida, which began as CS/HB 725, repealed section 626.928 relating to a surplus lines agent's bond. The act took effect October 1, 2012.

Nothing replaced it

Section 626.928 does not appear in the 2012 Chapter 626 Part VIII index or in the current one. The list runs from 626.927 straight to 626.9271 and 626.9272. Section 626.927, the licensing statute, was itself amended by the same act and says nothing about a bond.

The Department of Financial Services checklist for the resident surplus lines license lists no bond either.

What Florida actually requires now

You must be a natural person at least 18 years old, a Florida resident, a United States citizen or legal alien with work authorization, not hold a resident license in another state, and already be licensed as a Florida resident general lines insurance agent.

On top of that you satisfy one of three paths. Complete a 60 hour approved course in surplus and excess lines insurance within four years of the application date. Or complete at least one year of responsible insurance duties as a full time bona fide employee of a licensed surplus lines insurance agent. Or become a Florida resident having held a valid resident license in a reciprocal state with the equivalent line of authority for at least one continuous year, and apply within 90 days. All three paths still require the state exam unless you passed it within the year before applying.

Section 626.927 states the same substance: a current general lines agent license, plus either a minimum of one year of experience working for a licensed surplus lines agent or 60 class hours in surplus and excess lines in a department approved course, plus passing a written examination as to surplus lines.

Agents appoint themselves after licensure. The appointment fee is $150 and it renews every 24 months. A licensed surplus lines agent is deemed a member of the Florida Surplus Lines Service Office.

The filings that actually carry deadlines

This is where the real exposure sits now that the bond is gone.

Each surplus lines agent that transacted business during a calendar quarter files an affidavit with the Florida Surplus Lines Service Office on or before the 45th day following that quarter, documenting the effort to place the coverage with authorized insurers and the result.

The premium receipts tax under Section 626.932 is 4.94 percent of all gross premiums charged for surplus lines insurance. The agent collects it from the insured and remits it to the Florida Surplus Lines Service Office at the same time the quarterly affidavit is filed. Delinquent amounts accrue interest at 9 percent per year.

Eligibility and Requirements for a Florida Surplus Lines Broker ($50,000) Bond:

• No surety bond and no financial responsibility filing.
• Resident general lines agent license as a prerequisite.
• Natural person at least 18, Florida resident, United States citizen or legal alien with work authorization, holding no resident license in another state.
• Passing surplus lines examination score.
• Self appointment with a $150 fee renewed every 24 months.
• Membership in the Florida Surplus Lines Service Office, which follows automatically from the license.

Florida Surplus Lines Broker ($50,000) Bond FAQs:

Official and Additional Resources for the Florida Surplus Lines Broker ($50,000) Bond: