Florida Surplus Lines Broker

What is the primary purpose of the surplus lines market in Florida?

• ATo provide coverage for risks that admitted carriers are unable or unwilling to insure
• BTo offer cheaper insurance than Citizens Property Insurance
• CTo replace the Florida Insurance Guaranty Association
• DTo provide federal flood insurance

What license must a Florida surplus lines agent already hold before obtaining a surplus lines license?

• AA life and health insurance license
• BA General Lines (0220) insurance license
• CA title insurance license
• DA surplus lines license from another state

What is the Florida Surplus Lines Service Office (FSLSO)?

• AA state government agency that licenses surplus lines agents
• BA stamping office that reviews and processes surplus lines filings in Florida
• CA surplus lines insurance company domiciled in Florida
• DA federal agency that regulates surplus lines nationally

What is the Florida surplus lines premium receipts tax rate under F.S. 626.932 for policies effective on or after July 1, 2020?

• A3%
• B4%
• C4.94%
• D6%

What is the format of the Florida surplus lines broker exam?

• A25 scored questions with a 30-minute time limit
• B40 scored questions plus 10 pretest questions with a 1-hour time limit
• C100 scored questions with a 3-hour time limit
• D50 scored questions with a 2-hour time limit

As of July 1, 2025 (Ch. 2025-145 / HB 1549), what replaced Florida's former "diligent effort" requirement for exporting coverage to surplus lines?

• AWritten OIR approval before every surplus lines placement
• BA signed insured disclosure acknowledging admitted-market availability, FIGA exclusion, a…
• CMandatory placement only through Citizens Property Insurance
• DA federal surplus lines permit from the Federal Insurance Office

Which Florida statute governs surplus lines insurance?

• AFlorida Statutes Chapter 624
• BFlorida Statutes Chapter 626, Part VIII
• CFlorida Statutes Chapter 627
• DFlorida Statutes Chapter 631

What is Lloyd's of London's role in the Florida surplus lines market?

• ALloyd's is the sole surplus lines insurer authorized in Florida
• BLloyd's syndicates are major participants providing capacity for complex Florida risks
• CLloyd's is not eligible to write surplus lines in Florida
• DLloyd's only writes reinsurance in Florida

Are policyholders of surplus lines insurers in Florida protected by the Florida Insurance Guaranty Association (FIGA)?

• AYes, all insurance policyholders are covered by FIGA
• BNo, surplus lines policies are excluded from FIGA protection
• COnly if the surplus lines insurer is domiciled in Florida
• DOnly for claims under $300,000

What is the Nonadmitted and Reinsurance Reform Act (NRRA)?

• AA Florida-specific statute governing surplus lines
• BA federal law that gives the home state of the insured sole authority to regulate surplus…
• CA NAIC model act for surplus lines regulation
• DA reinsurance contract provision

What role does the FSLSO play in surplus lines premium tax collection in Florida?

• AThe FSLSO has no role in tax collection
• BThe FSLSO collects surplus lines premium taxes from agents and remits them to the state
• CThe FSLSO sets the surplus lines tax rate
• DIndividual agents remit taxes directly to the Department of Revenue

What is an alien insurer as it relates to Florida surplus lines?

• AAn insurer domiciled in another U.S. state
• BAn insurer domiciled outside the United States
• CAn insurer that only writes extraterrestrial risk
• DAn insurer that has been denied a Florida license

What minimum surplus as to policyholders must a surplus lines insurer generally maintain to be eligible in Florida under F.S. 626.918?

• AMinimum capital and surplus of $1 million
• BSurplus as to policyholders of not less than $15 million (alien insurers also need a U.S.…
• CAnnual premium volume of at least $100 million
• DAn A.M. Best rating of A++ only

What disclosure must a Florida surplus lines insured acknowledge under F.S. 626.916 for coverage to be eligible for export?

• AThe agent's commission structure only
• BThat coverage is in the surplus lines market, may be available in the admitted market, is…
• CThe surplus lines insurer's complete audited financial statement
• DA comparison of surplus lines and admitted market premiums prepared by OIR

What is the FSLSO pre-licensing course for Florida surplus lines agents?

• AA mandatory 200-hour course required before the exam
• BAn available pre-licensing course that helps prepare candidates for the surplus lines exam
• CA course required only for out-of-state applicants
• DA post-licensing requirement completed after passing the exam

What is the exam fee for the Florida surplus lines broker exam?

• A$24
• B$44
• C$88
• D$150

Under the NRRA, which state collects surplus lines premium tax on a multi-state risk?

• AEach state where a portion of the risk is located
• BOnly the home state of the insured
• CThe state with the highest tax rate
• DThe state where the surplus lines agent is licensed

What types of coverage are commonly placed in the Florida surplus lines market?

• AStandard auto and homeowners insurance
• BCoastal property, flood excess, hurricane deductible buyback, and specialty liability
• CMedicare supplement and long-term care insurance
• DStandard workers' compensation only

What is the difference between an admitted and non-admitted insurer in Florida?

• AAdmitted insurers are larger; non-admitted are smaller
• BAdmitted insurers are licensed by the Florida OIR and file rates/forms; non-admitted are…
• CThere is no practical difference
• DNon-admitted insurers offer better coverage

How does a surplus lines agent verify that a non-admitted insurer is eligible to write surplus lines in Florida?

• ABy checking the insurer's website
• BBy verifying the insurer appears on the FSLSO's list of eligible surplus lines insurers
• CBy calling the insurer directly
• DVerification is not required in Florida

What records must a Florida surplus lines agent maintain for each surplus lines contract under F.S. 626.930?

• AOnly the premium amount
• BA full record including amount of insurance, property description, gross premium, insurer…
• COnly the policy number and effective date
• DRecords are not required for surplus lines in Florida

What is the Florida Office of Insurance Regulation's (OIR) primary role regarding surplus lines?

• AOIR has no role in surplus lines regulation
• BOIR determines eligible surplus lines insurers and enforces insurer-related surplus lines…
• COIR only sets premium rates for surplus lines
• DOIR directly underwrites surplus lines policies

A Florida surplus lines agent places coverage with an insurer not on the eligible list. What consequence may the agent face?

• ANo consequence if the insurer pays claims
• BDisciplinary action including fines and potential license suspension or revocation
• COnly a verbal warning
• DThe transaction is automatically approved after 30 days

How does Florida's hurricane exposure affect its surplus lines market?

• AIt has no effect on surplus lines
• BIt increases demand for surplus lines coverage as admitted carriers may limit coastal pro…
• CIt eliminates the need for surplus lines because Citizens covers all risks
• DIt causes surplus lines insurers to avoid Florida entirely