FL | Effective January 1st, 2022, the passage of SB 1598 which requires a disclosure that surplus lines insurance is not covered by the Florida Insurance Guaranty Association prior to placing coverage with a surplus lines insurer. Previously, the notice was only required for commercial policyholders.
Section 11. Effective January 1, 2022, subsection (3) of section 626.916, Florida Statutes, is amended, and paragraph (f) is added to subsection (1) of that section, to read:
626.916 Eligibility for export.— (1) No insurance coverage shall be eligible for export unless it meets all of the following conditions:
(f) The insured has signed or otherwise provided documented acknowledgment of a disclosure in substantially the following form: “You are agreeing to place coverage in the surplus lines market. Coverage may be available in the admitted market. Persons insured by surplus lines carriers are not protected under the Florida Insurance Guaranty Act with respect to any right of recovery for the obligation of an insolvent unlicensed insurer.”
(3)(a) Subsection (1) does not apply to wet marine and transportation or aviation risks that
which are subject to s. 626.917.
(b) Paragraphs (1)(a)-(d) do not apply to classes of insurance which are subject to s. 627.062(3)(d)1. These classes may be exportable under the following conditions: (1.) The insurance must be placed only by or through a surplus lines agent licensed in this state; (2.) The insurer must be made eligible under s. 626.918; and (3.) The insured has complied with paragraph (1)(f)
must sign a disclosure that substantially provides the following: “You are agreeing to place coverage in the surplus lines market. Superior coverage may be available in the admitted market and at a lesser cost. Persons insured by surplus lines carriers are not protected under the Florida Insurance Guaranty Act with respect to any right of recovery for the obligation of an insolvent unlicensed insurer.”
If the disclosure
notice is signed by the insured, the insured is presumed to have been informed and to know that other coverage may be available, and, with respect to the diligent-effort requirement under subsection (1), there is no liability on the part of, and no cause of action arises against, the retail agent presenting the form.