Florida Surplus Lines Service Office Service Fee for Single-State Florida Policies to Increase From 0.1 to 0.2 Percent
Dec 20, 2012
The Florida Surplus Lines Service Office (“FSLSO”) announced today, December 20, 2012, that its service fee will increase from 0.1 percent to 0.2 percent, effective April 1, 2013. The service fee is applicable only to single-state Florida policies.
The Order from the Florida Office of Insurance Regulation approving the increase is attached in PDF format. The FSLSO 2013 Budget was also approved as part of the same Order.
All new and renewal policies/certificates with an effective date on or after April 1, 2013 will incur a service fee of 0.2 percent of the total gross premium as defined in Section 626.9325, Florida Statutes.
Those new and renewal policies/certificates with an effective date prior to April 1, 2013 will incur a service fee of 0.1 percent of the total gross premium. The service fee for all endorsements, audits, installments, cancellations or return of premium transactions applicable to policies/certificates effective prior to April 1, 2013 will be the same percentage as the inception date of the policy/certificate being endorsed.
The FSLSO provided the following related examples:
EXAMPLE ONE: The service fee for a policy with an effective date of January 1, 2013 is 0.1 percent of the total gross premium. An additional premium endorsement to the policy with an endorsement effective date of June 1, 2013 is 0.1 percent. If a cancellation takes place with an effective date of August 1, 2013, the service fee credit is 0.1 percent.
EXAMPLE TWO: The service fee for a policy with an effective date of April 1, 2013 is 0.2 percent of the total gross premium. An additional premium endorsement to the policy with an effective date of June 1, 2013 is 0.2 percent. If a cancellation takes place with an effective date of August 1, 2013, the service fee credit is 0.2 percent.
The FSLSO advised that business rules for calculating the correct service fee will be programmed into its management system. No changes need be made for SLIP or XML batch filing, however, revisions to agency management systems may be necessary to calculate the revised service fee.
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