Significant issues have arisen in Florida's surplus lines industry that have their genesis in two recent decisions by the Florida Supreme Court and the U.S. Court of Appeals for the 11th Circuit. Based upon these decisions, it appears an argument could be made that surplus lines insurers have to file their policy forms with the Florida Office of Insurance Regulation (OIR) and comply with other standards under Florida law that heretofore were not considered to be applicable to surplus lines insurers.

In the Essex Insurance Company v. Meriades Zota decision, the Florida Supreme Court addressed the issue of whether certain statutory provisions found in Chapter 627, Part II of the Florida Insurance Code applied to surplus lines insurers. These provisions related to the delivery of insurance policies and the award of attorney's fees to plaintiffs under certain circumstances.

Relying upon prior case law and its interpretation of legislative intent, the Supreme Court in Essex ultimately indicated that the provisions relating to the delivery of insurance policies and the awarding of attorney's fees set forth within Chapter 627, Part II of the Florida Insurance Code applied not only to admitted insurance companies, but also to surplus lines insurance carriers. The Supreme Court made this determination in spite of a statute that exempts surplus lines insurance from compliance with certain provisions in the Insurance Code, including those set forth in Part II of Chapter 627.