Florida bill to modernize its surplus lines insurance industry
Among other things, House Bill 301 will remove the surplus lines insurance industry's statutory capped fee.
The Florida legislature passed a bill that will modernize the regulatory framework of Florida’s surplus lines insurance industry in House Bill 301. The House voted 114-0 in favor of the bill, and the Senate voted 37-1 in support of the bill.
Among its provisions, this insurance legislation includes language previously passed by the House in House Bill 387. The version being considered by the Senate was indefinitely postponed and withdrawn from consideration.
Since both chambers approved the bill, the governor can sign the bill, allow it to become a law without his signature — which occurs 15 days after landing on his desk — or veto the bill.
Florida is one of the top three consumers of surplus lines insurance in the country. House Bill 301 will remove the surplus lines insurance industry’s statutory capped fee, replacing the cap with a requirement that the fee is compatible with the majority of other states.
Related: Three surplus lines execs identify industry’s biggest challenges, opportunities
Insurance industry reaction
The Florida Surplus Lines Association: ”This is great news for the surplus lines insurance industry and ultimately Florida businesses of every size,” President-elect Michael Franzese said in a statement. “As our industry has modernized over the years, keeping up with technology and new industries, the laws surrounding us had not. These changes will help us operate efficiently and promote a growing Florida economy.”
Wholesale & Specialty Insurance Association (WSIA): “We applaud the work of the Florida Surplus Lines Association (FSLA), and their partnership with WSIA and a number of industry leaders, to modernize the Florida surplus lines marketplace,” President Joel Cavaness said in a statement. “Surplus lines insurance is important to Florida consumers, businesses and the health of Florida’s economy, and we share the FSLA’s appreciation for Senator Jeff Brandes and Representative Colleen Burton and their leadership in ensuring the market’s ongoing strength in the state.”
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