Beginning July 1, 2025, Florida insurance agents will no longer be required to make a “diligent effort” to obtain coverage from admitted carriers before turning to surplus lines insurers. This change is part of House Bill 1549, which passed both chambers of the Florida Legislature and is awaiting the governor’s signature.
Current Requirements and Legislative Update
Under existing Florida law, agents must first seek coverage from at least three admitted insurance companies, or from one admitted company if the dwelling’s replacement cost is $700,000 or more, before accessing the surplus lines market. House Bill 1549 removes this requirement.
The updated language was added to a financial services bill and approved by the Florida House of Representatives in late April. The bill passed the Senate on Friday, and the House agreed to the amended version.
Disclosure and Consumer Acknowledgment
The bill modifies the required disclosure for surplus lines policyholders. In addition to the current statement that surplus lines policyholders are not protected by the Florida Insurance Guaranty Association in the event of insurer insolvency, the following sentence will be added:
“Additionally, surplus lines insurers’ policy rates and forms are not approved by any Florida regulatory agency.”
The bill states that if the policyholder signs the acknowledgment of the disclosure, the insured is presumed to have been informed and to know that other coverage may be available.
Provisions related to the exportability of coverage to surplus lines are removed.
Related Legislation on Citizens Property Insurance Agent Appointments
Senate Bill 1184, a separate bill that aimed to eliminate the 2024 requirement that agents be appointed with three insurance carriers before writing Citizens Property Insurance business, did not pass. The bill proposed allowing agents to submit a signed attestation confirming access to carriers or surplus lines insurers through brokers. This provision would not have applied to residential property coverage.
The three-appointment requirement was enacted in 2024 through House Bill 1503. Before that, agents were only required to have one appointment to write Citizens policies.
Although Senate Bill 1184 and a similar bill in the House (House Bill 643) advanced during the session, both were withdrawn from consideration before the end of the legislative session.
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