The broad exemption historically applied to surplus lines insurance under Florida law was recently called into question by the decision handed down by the Florida Supreme Court in Essex Insurance Company v. Mercedes Zota (Case No. SC06-2031). In Essex, the Court answered one of five questions certified to it by the United States Court of Appeals for the Eleventh Circuit: Whether the provisions embodied in Section 626.922, Florida Statutes (requiring surplus line insurers to issue and deliver insurance policies) or Section 627.421 (requiring licensed insurers to deliver insurance policies to insureds within a specified timeframe) require a surplus line insurer to deliver the policy directly to an insured and not just to the insured's agent. The Court answered in the negative, upholding the common law rule that delivery to the insured's agent was sufficient.

Though not necessary for the Court to reach its decision, the Court also addressed the scope of Florida's surplus lines exemption. Chapter 627 of the Florida Statutes contains Florida's rating law as well as content and filing requirements for policy forms and most other policyholder-related provisions historically applicable to licensed, admitted insurers.

In Essex, Florida's highest court held that the exclusionary provision of Section 627.021(2), Florida Statutes, was intended to exempt surplus lines insurance only from the rating law, and not from all of the other provisions of Chapter 627. Based upon its interpretation, the Court found that both Section 627.421 and Section 627.428 (allowing for the award of attorney's fees) were applicable to surplus lines insurance.