FL| Florida House Bill 1549, just signed into law, makes significant changes to Florida’s financial services and insurance regulations. The law streamlines the process for securing insurance through surplus lines carriers by removing the previous requirement that agents must first obtain three denials from admitted insurers before turning to surplus lines. It also updates assessment and reporting requirements for state financial institutions, and revises operational timelines for banks and trust companies.
Key Points:
- Eliminates the longstanding “diligent effort” requirement for surplus lines insurance placements. Previously, agents were required to seek and document at least three declinations from authorized insurers (or one for high-value residential properties) before turning to the surplus lines market. With the new law, agents can now place coverage with surplus lines insurers without first obtaining these declinations, streamlining the process and reducing administrative burdens.
- Requires state financial institutions to pay semiannual assessments and submit them to the Office of Financial Regulation by specified dates, with updated procedures for certification and reimbursement of certain credit union officials.
- Revises the timeframes for directors of proposed banks or trust companies to meet certain requirements and for bank or trust company corporations to open for business.