Florida Surplus Lines Service Office Budget Committee Reviews 2013 Proposed Budget
Oct 23, 2012
The Florida Surplus Lines Service Office (“FSLSO”) Budget Committee (“Committee”) met today, October 23, 2012, to discuss the proposed FSLSO budget for 2013.
FSLSO Executive Director Gary Pullen reviewed the proposed budget, which totals $6.8 million–a 17 percent decrease from the 2012 budget.
The 2012 budget included projections for the operation of the Nonadmitted Insurance Multi-State Agreement (“NIMA”) Clearinghouse. At the time the 2012 budget was approved, 12 states were members of NIMA. Currently, only six states are members.
The Committee moved to recommend the 2013 budget to the FSLSO Board of Governors (“Board”) for approval. Members also discussed the FSLSO service fee, which is used to fund FSLSO operations and activities. The current fee is 0.1 percent of net premium. It was noted that the fee was reduced in 2007, so that the FSLSO could use its reserves to fund part of its operations. The Committee moved to recommend to the Board that the service fee be raised to 0.2 percent.
Both the 2013 budget and the service fee issue will be taken up by the Board at its meeting tomorrow. Both will ultimately need to be approved by the Florida Office of Insurance Regulation.
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