Which situation requires DFS to suspend, revoke, or refuse to renew a surplus lines agent's appointment under s. 626.935(1)?

Closing the agent's office for more than 30 consecutive days. Section 626.935(1)(c) makes closure of the licensee's office for more than 30 consecutive days a mandatory ground. The other choices describe lawful practices.

DFS revokes a surplus lines agent's license. How long must the person wait before applying for another license or appointment under the Code?

2 years. Section 626.641(2), applied through s. 626.935(4), bars a revoked licensee from applying for another license or appointment for 2 years from the effective date of revocation, or from the final court order if judicial review is sought. The person must then qualify as a first-time applicant.

Where DFS may impose an administrative fine in lieu of or in addition to suspending an individual surplus lines agent, what is the maximum for willful misconduct under s. 626.681?

$3,500, which may be increased by commissions earned on the transaction. Section 626.681(1) allows fines up to $500, or up to $3,500 for willful misconduct or violations, increased by related commissions. The $10,000-per-violation limit applies to insurance agencies.

Suspension, Revocation & Other Penalties | Free Guide 2026

Outline item III.C, Suspension, Termination, Revocation of License and Other Penalties, cites s. 626.935. That section lists surplus-lines-specific grounds, borrows the general grounds for general lines agents, and pulls in the Code's rules on how long discipline lasts and what alternatives DFS may use.

Mandatory Grounds: s. 626.935(1)

DFS shall deny an application for, suspend, revoke, or refuse to renew the appointment of a surplus lines agent, and all other licenses and appointments the licensee holds under the Code, on any of these grounds:

	Ground
(a)	Removal of the licensee's office from the licensee's state of residence
(b)	Removal of the surplus lines accounts and records from Florida, or from the licensee's state of residence, during the s. 626.930 retention period
(c)	Closure of the licensee's office for more than 30 consecutive days
(d)	Failure to make and file the affidavit or reports when due under s. 626.931
(e)	Failure to pay the tax or service fee on surplus lines premiums
(f)	Suspension, revocation, or refusal to renew or continue the license or appointment as a general lines agent, service representative, or managing general agent
(g)	Lack of qualifications for an original surplus lines license
(h)	Violation of the Surplus Lines Law
(i)	Any other cause for which a general lines agent's license could be suspended, revoked, or refused under s. 626.611 or s. 626.621

Ground (f) links the licenses: a surplus lines license depends on the underlying general lines, service representative, or MGA authority.

Discretionary Grounds: s. 626.935(2)

DFS may, in its discretion, deny, suspend, revoke, or refuse to renew a surplus lines license or appointment on any applicable ground for which a general lines agent's license could be disciplined under s. 626.621.

Examples from ss. 626.611 and 626.621

Compulsory (s. 626.611): lack of qualifications; material misstatement or fraud in obtaining a license; willful misrepresentation of a policy; demonstrated lack of fitness or trustworthiness; fraudulent or dishonest practices; misappropriation, conversion, or unlawful withholding of funds; unlawful rebating or dividing commissions; willful Code violations; and a guilty finding or plea to a felony, or a crime punishable by 1 year or more.
Discretionary (s. 626.621): violating the Code or a DFS order or rule; failing to pay over money belonging to an insurer on demand; twisting; unfair trade practices; willful overinsurance; cheating on an exam; and failing to report a qualifying criminal plea or conviction within 30 days.

Procedure: s. 626.935(3)

DFS follows the same procedures it uses to discipline general lines agents, subject to s. 626.936 for failure to file a quarterly report or pay the tax. That means the per-day administrative fines of up to $50 for late reports and up to $500 for late taxes or fees are available alongside license action.

Borrowed Consequences: s. 626.935(4)

Section	Rule
s. 626.641	A suspension may not exceed 2 years, and reinstatement requires an approved application; after a second suspension, DFS-approved continuing education is also required. After revocation, the person may not apply for any license or appointment for 2 years, and must then qualify as a first-time applicant
s. 626.651	Suspending, revoking, or refusing to renew one license suspends or revokes all other licenses, appointments, and eligibility the person holds under the Code
s. 626.661	Licenses are property of the State of Florida and lose effect on termination. Physical surrender is required only if DFS requests it
s. 626.681	An administrative fine may be imposed in lieu of or in addition to suspension or revocation, except on a second offense or when discipline is mandatory: up to $500, or up to $3,500 for willful misconduct, and it may be increased by commissions earned on the transaction. An insurance agency may be fined up to $10,000 per violation
s. 626.691	Probation of up to 2 years, with conditions, may be ordered in lieu of or in addition to other discipline, except where a fine is not permitted or discipline is mandatory

Related Personal Liability

s. 626.9295: a surplus lines agent in an incorporated agency is personally liable for violations by the agent or by anyone under the agent's direct supervision.
s. 626.901(2): personal liability for unpaid claims on illegally placed contracts.

Scenario Analysis

Office closed. A sole surplus lines agent closes the office for a 6-week vacation with no one handling business. Closure for more than 30 consecutive days is a mandatory ground under s. 626.935(1)(c).
General lines license revoked. DFS revokes an agent's 2-20 license for misappropriating premium. The surplus lines appointment must be revoked as well under s. 626.935(1)(f), and s. 626.651 extends the action to all licenses. The agent may not reapply for 2 years under s. 626.641.
Late affidavits. An agent files quarterly affidavits late twice. Failure to file when due is a mandatory ground under s. 626.935(1)(d), and s. 626.936 fines of up to $50 per day also apply.
Records moved. A Florida resident agent moves the surplus lines files to a storage unit in Georgia during the 5-year retention period. That is a mandatory ground under s. 626.935(1)(b).
Twisting on an admitted policy. This is a discretionary ground under ss. 626.621(5) and 626.935(2).

Florida Surplus Lines Broker

8.4 Suspension, Revocation & Other Penalties (s. 626.935)

Key Takeaways