FAQ Topics

If you have additional questions regarding Production Ledger Review, please contact: 

Amber Pullen
800-562-4496, ext. 154
apullen@fslso.com 

The Production Ledger should include a complete list of only Non-Admitted (surplus lines)Florida business, written by the surplus lines agent for the time period indicated in the request. The list should not include any admitted policies. The file must be delivered in Excel only and must include the following data elements for each transaction:

• Policy Number
• Insured Name
• Effective Date
• Insurer
• Premium

The following elements will be reviewed during a Production Ledger Review: 

 Policy Data Elements 

• Policy number 
• Name of Insured
• Insurer
• Premium
• Effective Date

To update your user details in SLIP+, follow these instructions:

1. Click on the user’s name in the top right of the SLIP+ screen and select Settings from the drop-down.
2. Select User Manager from the left side menu.
3. Click the username in the user table.

Refer to our Diligent Effort / Disclosure Matrix for guidance on the diligent effort or disclosure requirement for each line of coverage for both residential and nonresidential placements.

Effective January 1, 2022, per F.S. 626.916 (1)(e), no coverage shall be eligible for export unless 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. 

Once you are licensed, appointed, and registered through SLIP+ you may begin transacting business.

For more information on obtaining a license, visit the following web pages:

• Steps to obtain resident 1-20 surplus lines license
• Steps to obtain non-resident 91-20 surplus lines license
• 60-Hour Pre-Licensing Course

A Transaction in Question, or TIQ, is a transaction that has been received by FSLSO but does not meet one or more of FSLSO’s business rules, has not yet been accepted, and possibly has not been invoiced. If you receive a confirmation number that begins with a “Q,” please make the necessary corrections to the transaction or contact FSLSO if you need assistance. 

All new and renewal policies effective prior to July 1, 2020, and any subsequent endorsements on those policies will still be taxed at the original rate of 5%.

For example, the tax rate for a policy, effective January 1, 2020, is 5% of the gross premium. An additional premium endorsement effective July 1, 2020 would also be taxed at 5%. If the policy is cancelled effective August 1, 2020, the tax credit is 5% of the returned premium.

Multistate policies effective on or after July 1, 2020, with Florida as the home state, are taxed at 4.94% for the Florida portion and 4.94% for the rest of the states, as well. 

For example, if you have a Florida home state policy effective on July 2, 2020, broken out as follows:

• Florida = $5,000
• Georgia = $2,000
• Alabama = $2,000

It would be reported in SLIP+ as: Florida = $5,000 and Non-Florida = $4,000.

It does not affect multistate policies with effective dates prior to July 1, 2020.

Multistate policies effective prior to July 1, 2020, with Florida as the home state, are taxed at 5% for the Florida portion and the applicable state tax rate for the other states. 

For example, if you have a Florida home state policy effective on June 30, 2020, broken out as follows:

• Florida = $5,000
• Georgia = $2,000
• Alabama = $2,000

It would be reported in SLIP+ as Florida = $5,000, Georgia = $2,000, and Alabama = $2,000.

Failure to provide information on time (per F.S. 626.930 (2)) could result in administrative action by the Department of Financial Services (DFS) and possible suspension or revocation of the agent’s license.

Per F.S. 626.930 (2) all records shall at all times be open to examination by the Department of Financial Services or the Florida Surplus Lines Service Office without notice and shall be so kept available and accessible for five years following the expiration or cancellation of the contract.

According to F.S. 626.923, a surplus lines agent shall, within 30 days after the date of a request by the Department or the Florida Surplus Lines Service Office, furnish an exact copy of all requested policies, including applications, certificates, cover notes, or other forms of confirmation of insurance coverage or any substitutions or endorsements. 

A desk review is a compliance review conducted by the Compliance Review analyst from their office. Information can be transferred between the analyst and the agent via phone, email, fax, or postal service. This type of review is better suited for Basic Reviews of agents with minimal policies to review.

An on-site review is a compliance review conducted in the agent’s office.

Yes. A No Business Report is required in lieu of quarterly or annual policy information for eligible surplus lines insurers not doing business in Florida and must be submitted through SLIP+. Foreign insurers must submit the No Business Report quarterly within 90 days of the end of the quarter. Alien insurers need to file annually, by June 30, for the previous calendar year.

An entity should be a governmental (state, county, municipality) entity to be exempt from surplus lines tax. Non-profit 501(c)(3) organizations are typically exempt from sales tax but are not exempt from surplus lines tax unless proven otherwise by the entity and its filing surplus lines agent.  

Q: If the total dwelling replacement cost of residential structures insured by one policy totals $700,000 or more, but not one individual structure has a dwelling replacement cost of $700,000 or more, would the exemption requiring only one declination apply?  (For example, if there were three separate condominium structures, each with a dwelling replacement cost of $400,000 covered under one policy for a total of $1.2 million.)

A: No. The exemption requiring only one declination will not apply if no single residential structure has a dwelling replacement cost of $700,000 or more. Even though one policy will be issued to cover all the buildings included in a single condominium association, an agent cannot use the aggregate replacement cost value of the buildings to reach the threshold. The language in the statute specifically refers to "the residential structure." The agent will only need one declination if any residential structure has a dwelling replacement cost of $700,000 or more, but the qualifying structure must be "residential." It must have dwelling units and cannot be solely a pool, commercial unit, or other common area.

Q: Does the one declination exemption apply if an individual coverage such as liability was written on a residential structure with a dwelling replacement cost of $700,000 or more?

 A: Yes. So long as the residential structure has a replacement cost of $700,000 or more, any coverage requiring a diligent effort would need only one declination. Section 626.914(4), Florida Statutes, does not limit the type of coverage sought to a property policy. It states explicitly: "diligent effort means seeking coverage from and having been rejected by at least one authorized insurer currently writing this type of coverage and documenting this rejection."

The next step is to self-appoint your license through your Florida Department of Financial Services MyProfile account at https://dice.fldfs.com/public/pb_index.aspx.  

Diligent effort means seeking coverage from and having been rejected by at least three authorized insurers currently writing this type of coverage and documenting these rejections.

The only exception is in the case of a residential structure that has a dwelling replacement cost of $700,000 or more. In this case, you would only need to seek coverage from and be rejected by at least one authorized insurer currently writing the requested coverage and documenting the rejection.

A Basic Review is a review of an agent who is currently writing or has written surplus lines business within the last three years. 

The review verifies the status of the agent’s surplus lines license and the proper reporting of surplus lines policies. FSLSO will review randomly selected policies to ensure compliance is maintained under the Florida Surplus Lines Service Office Agent Procedures Manual.

According to Florida law (F.S. 626.932), the term “premium” means the consideration for insurance by whatever name called and includes:

• Any assessment,
• Any membership,
• Policy,
• Survey,
• Inspection,
• Service, or
• Similar fee or charge

in consideration for an insurance contract, which items are deemed to be a part of the premium.

The per-policy fee charged by the filing surplus lines agent and authorized by F.S. 626.916(4) is also included within the meaning of the term “premium.” 

However, the service fee imposed by F.S. 626.9325 is excluded from the meaning of the term “premium.”

A Desk Review is a compliance review conducted by the Compliance Review analyst from their office. Information can be exchanged between the analyst and the agent through SLIP+, phone, email, or postal service. This type of review is better suited for Basic Reviews of agents with a limited number of policies to examine.

In order to complete a transfer of business, you must first decide which type of transfer is applicable (single policy transfer, multiple policy transfer, or global transfer). Then, complete the Transfer of Business forms, including the agents’ signatures, and email the completed forms to agent.services@fslso.com.

Single Policy Transfer
When transferring a single policy and associated transactions, the assuming agent and relinquishing agent are required to complete the FSLSO Transfer of Business forms.

A broker of record (BOR) can also initiate a single policy transfer. In order to transfer a single policy initiated by a BOR and its associated transactions to the agent assuming the policy, a completed and signed Assuming Agent Transfer of Business form with a copy of the BOR must be sent to FSLSO. The Relinquishing Agent form is not required to be completed. Upon verification, the transfer will be made. 

Multiple Policy Transfer
When transferring multiple policies and associated transactions, the relinquishing agent and the assuming agent are required to complete and sign the FSLSO Transfer of Business forms and provide a list of the policies to be transferred.

No. Execution of a diligent effort search does not take the place of a disclosure statement signed by the named insured on exempt coverages. For coverages that are statutorily exempt from the diligent effort requirement, the retail or producing agent is required to keep a disclosure statement signed by the named insured.

Surplus lines agents are not required to keep a copy of the disclosure form; however, it would be beneficial to keep a copy if needed to resolve any dispute with the insured regarding the placement of the surplus lines coverage. Please note: the surplus lines agent is required to maintain a copy of the disclosure form if they are also acting as the retail/producing agent.  

All personal lines coverages require a diligent effort and a Surplus Lines Disclosure Form.  Most commercial coverages no longer require a diligent effort but require the Surplus Lines Disclosure Form instead.  Wet marine, aviation, and transportation risks are exempt from both. To determine if a diligent effort is required, please review the Diligent Effort/Disclosure Matrix.

All surplus lines agents who have transacted business must file a quarterly affidavit.

Per F.S. 626.931, all surplus lines agents that have transacted business during a calendar quarter shall, on or before the 45th day following the calendar quarter, file with FSLSO an affidavit on forms prescribed and furnished by FSLSO. The affidavit must state that all surplus lines business transacted by the agent during such calendar quarter has been submitted to FSLSO as required.

The quarterly affidavit can be submitted electronically via the Compliance tab in SLIP+. 

Agents who fail to file an affidavit when due may be subject to a fine by DFS up to $50 per day for each day the neglect continues, beginning the day after the affidavit was due until the date it was received by FSLSO.

AFFIDAVIT FILING SCHEDULE 

1st Quarter January 1 – March 31
Filing Deadline May 15

2nd Quarter April 1 – June 30
Filing Deadline August 14

3rd Quarter July 1 – September 30
Filing Deadline November 14

• Name
• Florida License ID Number
• Mailing address
• Telephone number
• Enclose your Florida insurance license ID or a statement indicating that you do not have the ID
• Signature of the licensee
• Copy of government-issued photo identification

This error means the brokerage/agency license number used is not a valid licensed surplus lines agency. In most cases, the error occurs because a brokerage number was inserted in a broker section, or a broker number was inserted in a brokerage section.

There are times when policy information submitted by the insurer does not match with a surplus lines agent or IPC filing. At this point, the Premium Reconciliation staff works to find the appropriate corresponding agent or IPC policy information to match up with the insurer filing.   The Premium Reconciliation staff primarily uses four components to match insurer filings with agent and IPC filings including:

• Policy number
• Premium amount
• Effective date
• Insurer name

   

If the matching filing cannot be located, staff will contact the insurer to gather additional information, including the name of the agent or agency, contact information, as well as a copy of the declarations page.

Staff will then contact the responsible party to inquire if the matching policy filing was made and request the confirmation number for the policy in question if it was filed. If necessary, the Premium Reconciliation staff may also request that the agent or IPC filer provide additional documentation.

If the policy submission has not been made, the Premium Reconciliation staff will request it be done at the earliest convenience to avoid any late payment penalties that could accrue. The Premium Reconciliation staff has up to 180 days to reconcile the outstanding policy before it is referred to the Department of Financial Services or the Office of Insurance Regulation.

Florida law (F.S. 626.922 and 626.924) mandates specific information to be included on a surplus lines contract. FSLSO provides a Sample Face Page that contains all the required information.

If the insurer on the policy is not available in the drop-down menu, they may be added by selecting the Edit Insurer List link below the drop-down. Once you find the insurer on the Available Insurers list, click the “>” to add it to the Selected Insurers list. Then click Save.

Obtaining a Florida surplus lines license is a multi-step process that includes pre-qualification, applying for the license, and an examination. For details on each of these steps, please refer to the  Agent Licensing Requirements page, which will give you step-by-step instructions. 

For single state policies, you can submit a new business or renewal transaction with zero premium and the original effective date of the policy. SLIP does not allow a multistate transaction to be filed with zero premium/policy fees except for cancellation transactions.

To add a new business or renewal multistate transaction for a master policy, you must file the policy once there is a premium-bearing transaction/endorsement. For the first premium-bearing transaction on the policy, use the original effective date of the policy. For the remaining endorsements, use the effective date of the endorsement.

Yes. Florida Statute requires entities engaging in any activity or employing individuals to engage in any activity which by law may be performed only by a licensed insurance agent to hold an agency license.

NOTE: An insurance agency owned and operated by a single licensed agent conducting business in their name and not employing or otherwise using the services of or appointing other licensees is exempt from the agency licensing requirement.

If you have additional questions regarding compliance review, please contact:

Felicia Meredith
800-562-4496, ext. 105
fmeredith@fslso.com

To edit data on a previously filed transaction, follow the instructions below.

1. Select Policy Search from the Filings tab.
2. Enter the previously filed policy number or other search criteria in the appropriate field(s) and click Search.
3. Click on the policy number in the left column labeled Policy Number.
4. In the Transaction Details section, find the transaction you wish to edit and click the three vertical dots to the far right, then choose Edit, which will take you to the Coverage & Transaction page.
5. Make the necessary changes and click the Review button at the bottom right.
6. A System Warning window will display advising the edit is going to create a backout transaction. Select YES to proceed.
7. Review the transaction information and if all is correct, click the Submit Filing button on the bottom right.

The following elements will be reviewed during a Compliance Review:

 1. Documentation

• Surplus lines agent license
• Policy Declaration pages
• Diligent Effort forms
• Endorsements (if requested)
• Policy Face or Front Pages (if applicable)
• Invoices
• Inspection Report (if applicable)
• Membership Agreement (if applicable)
• Documentation to support any fees charged in addition to the surplus lines agent policy fee (if applicable)

 2. Policy Review Data Elements

• Declarations page
• Policy number
• Name of insured
• Zip code and county of Risk
• Stamp information
• Transaction type
• Insurer
• Coverage code
• Policy period
• Supplemental residential property data
• Premium
• Policy fees
• Inspection fees
• Premium tax
• Service fee
• Citizens' assessment fee (if one is in place)
• EMPA surcharge
• Florida Hurricane Catastrophe Fund (if one is in place)
• Unfiled policies/transactions

When professions require E&O coverage, many products include E&O in a package commonly referred to as a “professional liability” policy. On October 1, 2011, the Office of Insurance Regulation stated that professional liability could be considered E&O insurance. Thus, only a disclosure form is necessary when purchasing professional liability coverage.

The Premium Reconciliation program is an inspection of submitted insurer and agent/IPC policy information to find “variances and verify that all taxes, service fees, and assessments have been paid correctly.

Since its inception in 2000, the Premium Reconciliation program has been highly effective in the collection of taxes, fees, and assessments relative to unreported premium. In 2018, more than $70 million in unreported premium was identified, resulting in more than $2.5 million in taxes, fees, assessments, and penalties.

As Florida eligible surplus lines insurers and agents submit policy data to FSLSO, our system automatically "matches" information from both parties on correlating policies. Information is linked based on several factors, including policy number, premium amount, insurer name, and effective date.

As an example, Agent John Doe submits policy information on a Commercial Property policy written through XYZ Insurance Company. XYZ Insurance Company is also required by Florida Statute to file policy information regarding the Commercial Property policy written by Agent John Doe. Both parties submit policy information for the risk and is “matched” and reconciled through FSLSO’s database.

To edit policy information on a previously reported policy, follow the instructions below.

1. Select Policy Search from the Filings tab.
2. Enter the previously filed policy number or other search criteria in the appropriate field(s) and click Search.
3. Click on the policy number in the left column labeled Policy Number.
4. You are now on the Policy Details page. Click the Edit link on the top right of the Policy Information section.
5. Make the necessary changes and click the Save button on the top right of the Policy Information section.

If the policy period is extended for 365 days or more and all original terms and conditions remain, the additional premium endorsement must be filed as a renewal transaction in SLIP+. Filing a renewal for policy extensions allows the policy to be charged the appropriate tax, Service Office fee, and assessment rates (if applicable) for the new policy period. The insurer is not required to issue a policy renewal since this is for SLIP+ filing purposes only.

For example, if the original policy term is January 1, 2022, through January 1, 2023, and an endorsement is issued that extends the policy expiration to January 1, 2024. You should file the extension endorsement as a renewal transaction in SLIP with an effective date of January 1, 2023, and an expiration date of January 1, 2024.

The only exception is when the endorsement is an extended reporting period (ERP) endorsement, also known as "tail coverage." These endorsements are typically associated with claims-made liability policies. When submitting ERP endorsements in SLIP+, please file the endorsement within the original policy term and do not extend the expiration date.

To update your contact information in SLIP+, follow these instructions:

1. Click on the user’s name in the top right of the SLIP+ screen and select Settings from the drop-down.
2. Choose Contacts from the left side menu.
3. Click Edit on the right side of the screen.

When submitting a layered policy, agents and IPC filers must enter each layer under the insurer that wrote the particular layer of business. If the policy number is the same for each insurer, agents will use the same policy number for the entire risk. However, the appropriate amount of premium allocated to each separate insurer must be broken out. 

If your agency name and license number are not in the Available Agencies box on the Settings page in SLIP+, contact Agent Services at agent.services@fslso.com and provide the following information:

• Agency Name 
• Agency License Number
• Agency FEIN 
• Agency Address 
• Agency Phone Number
• Agency Email

If the agency is licensed as required by the Florida Department of Financial Services, we will add the agency to our database.

Yes. Enter the policy number exactly as it appears on the declarations page from the carrier, including any special characters. 

Acceptable fees include a policy fee charged by the filing surplus lines agent, inspection fees, survey fees, membership fees, or similar fees charged in consideration for the insurance contract per F.S. 626.916. These fees are considered premium for taxation purposes.

A surplus lines agent may charge a “reasonable” per-policy fee that must be reported to the FSLSO. This fee is taxable and must be itemized separately to the insured before purchase and enumerated in the policy.

Unbalanced Returned Premium (URP)
This TIQ indicates that a return premium transaction or cancellation transaction has been submitted with premium greater than the total premium submitted for that particular policy term. The Unbalanced Returned Premium (URP) TIQ is a financial TIQ. FSLSO staff members cannot manually accept financial TIQs, they can only be corrected and accepted by the user.

Unbalanced Returned Policy Fees (URF)
A transaction will be questioned if the policy fees submitted with a return premium transaction or a cancellation are greater than the total policy fees submitted for that particular policy term. The Unbalanced Returned Policy Fees (URF) TIQ is a financial TIQ. FSLSO staff members cannot manually accept financial TIQs, they can only be corrected and accepted by the user.

Tax Status 2 (TS2)
This tax status should only be used when insuring risks of the state government, counties, municipalities, or their agencies. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by an FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Tax Status 4 (TS4)
This tax status was specifically created for property policies covering hospitals that are members of an alliance. This tax status is exempt from the surplus lines tax, service office fee, and assessments. However, the EMPA surcharge applies. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by a FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Tax Status 5 (TS5)
This tax status was created for entities that are exempt from the surplus lines tax, service fee, assessments, and the EMPA surcharge but are required to be filed by law because they are premium-bearing. Due to this exemption status, all new business and renewal transactions (initiating transactions) are questioned when submitted to allow an FSLSO staff member the opportunity to verify the exemption. Documentation may or may not be requested by an FSLSO staff member. Once the staff member is satisfied the insured is, in fact, exempt from the tax and service fee, the questioned transaction will be manually accepted by an FSLSO staff member.

Standalone Type 2 Transaction (SA2)
This TIQ occurs when an additional premium transaction has been filed, and no existing new business or renewal filing is present. The Standalone Type 2 Transaction (SA2) TIQ can only be corrected by the user.

Credit Verification (CV)
This TIQ occurs when a return premium or cancellation transaction has been submitted that meets certain guidelines set forth by FSLSO. The Credit Verification (CV) TIQ has to be worked by an FSLSO staff member, and documentation of the credit is required. If you receive a questioned transaction for this reason, you can be proactive and upload a copy of the endorsement in SLIP+ and submit it to FSLSO. If the documentation is not uploaded in SLIP+, an FSLSO staff member will email you for the documentation.

Extends Policy Expiration Date (EE2)
An EE2 TIQ occurs when an endorsement is filed that extends the policy expiration date for 365 days or more. The Extends Policy Expiration Date (EE2) TIQ was implemented to allow FSLSO to charge the most current premium taxes, service fees, and assessments. 

Unknown or Ineligible Surplus Lines Agent (NAG)
This TIQ will occur if the agent was not licensed and/or appointed on the effective date of the policy. The Unknown or Ineligible Surplus Lines Agent (NAG) TIQ has to be worked by an FSLSO staff member and can be caused for several reasons, such as a temporary lapse of the agent’s surplus lines self-appointment. A Florida surplus lines agent is required to be licensed and self-appointed when placing business.

Unknown or Ineligible Insurer (NIN)
This TIQ can occur when the transaction has an incorrect insurer NAIC number or the insurer is not an eligible surplus lines insurer. The Unknown or Ineligible Insurer (NIN) TIQ will occur when the user has selected “Other Surplus Insurer” from the insurer drop down menu or submits through Batch. “Other Surplus Lines Insurer” should only be used when placing 12.5% or less of the coverage with an ineligible insurer pursuant to 626.918(6), F.S. If the transaction is questioned for this reason, an FSLSO staff member will accept the questioned transaction after receipt of proper documentation. This TIQ also occurs when an insurer has changed their name midterm during the policy, and an endorsement is filed with the insurer’s previous name. The user will need to make this correction.

Invalid Coverage Code/Tax Status Combination (CTS)
A transaction will be questioned if a coverage code is submitted with a tax status that does not apply to that particular coverage code.

Please note: This TIQ type only occurs as a result of submissions made via Batch. The SLIP+ environment is programmed so this will not occur.

Certain coverage codes, such as motor truck cargo, ocean marine, and aviation, are exempt from the surplus lines premium tax and have a specific tax status. SLIP+ has been programmed to only allow each coverage code’s specific tax status, however Batch allows all tax statuses which will create this questioned transaction. Only the user can correct this questioned transaction.

Eligible Agency Not Found (NAY)
This TIQ occurs when a transaction is submitted with an agency that is no longer active in our database. The Eligible Agency Not Found (NAY) TIQ will need to be worked by an FSLSO staff member. Florida requires each place of business that engages in any activity that may be performed only by a licensed insurance agent to hold an insurance agency license. If the agency license number you are filing under is no longer active in our database, you will receive this questioned transaction.

There may be steps you need to follow to update your agency information. An FSLSO staff member will advise what steps need to be taken, if any.

Zero Premium (ZP)
This TIQ occurs when a transaction is submitted with a 0 in the premium field and a dollar value in the policy fee field. The Zero Premium (ZP) TIQ can only be accepted by an FSLSO staff member. An FSLSO staff member will review each ZP TIQ to determine the validity of the additional fee and either accept the questioned transaction or inquire further.

An FSLSO staff member will review each ZP TIQ to determine the validity of the additional fee and either accept the questioned transaction or inquire further.

Future Effective Date (FED)
Transactions that are submitted more than six months in advance of the effective date are questioned in order to verify the validity of the effective date. If you receive the Future Effective Date (FED) TIQ, verify the effective date of the transaction. Typically the user has made a simple error and entered the incorrect year. If this is so, edit the date. If the date is correct, contact an FSLSO Analyst to advise the date is correct, and we will manually accept the questioned transaction.

New Business Renewal (NBR)
This TIQ occurs when a new business and a renewal transaction are filed with the same effective date. The New Business Renewal (NBR) TIQ has to be corrected by the user before it can be manually accepted by an FSLSO staff member.

Invalid State Specified (ISS)
This TIQ only applies to multistate transactions and can be triggered for several reasons.

If a multistate Batch file with an initiating transaction effective on or after July 1, 2020, is submitted using any state allocations other than Florida or Non-Florida, it will be questioned. SLIP+ is programmed to only accept  Florida or Non-Florida after June 30, 2020. 

If an endorsement is filed on an initiating transaction effective on or after July 1, 2020, and the initiating transaction is subsequently backed out, it will be questioned. Once the initiating transaction is backed out, the endorsement becomes either a standalone type 2 transaction (SA2) or would be associated with an initiating transaction effective prior to July 1, 2020, triggering the ISS TIQ.

An initiating transaction effective prior to July 1, 2020 (i.e., June 1, 2020) and a subsequent endorsement effective after July 1, 2020 (i.e., July 15, 2020) are filed using state-by-state premium tax allocations. Then, an initiating transaction effective on or after July 1, 2020 (i.e., July 2, 2020) is filed on the same policy. The endorsement transaction will be questioned because it would now be associated with an initiating transaction effective on or after July 1, 2020, meaning the state allocation selections will need to be updated to Florida and Non-Florida.

Only the user can correct this questioned transaction.

Applicable coverage codes: 

• 1000 Commercial Property
• 1001 Builders Risk - Commercial
• 1003 Apartments - Commercial
• 1005 Commercial Package
• 1006 Condominium - Commercial
• 1017 Collateral Protection (force placed coverage)
• 2000 Homeowners-HO-1
• 2001 Homeowners-HO-2
• 2002 Homeowners-HO-3
• 2003 Homeowners-HO-4 - Tenant
• 2004 Homeowners-HO-5
• 2005 Homeowners-HO-6 - Condo Unit Owners
• 2006 Homeowners-HO-8
• 2007 Builders Risk - Residential
• 2009 Dwelling Property
• 2010 Farmowners Multi-Peril
• 2011 Mobile Homeowners

State and governmental entities are NOT exempt and therefore are also assessable.