FAQs
Does Florida have regulatory restrictions on what a surplus lines agent may charge as a fee and are the fees considered premium for taxation purposes?
Sep 3, 2020, 00:00 AM
Title :
Does Florida have regulatory restrictions on what a surplus lines agent may charge as a fee and are the fees considered premium for taxation purposes?
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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.
Further, a retail agent may charge a “reasonable” per-policy fee for surplus lines policies, which must also be itemized separately to the insured before purchase. This fee is not required to be enumerated in the policy and is not included in the definition of "taxable premium" in statute.
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- FAQ Taxes, Fees, and Assessments