8.2 Temporary & Nonresident Surplus Lines Licenses (ss. 626.9271, 626.9272)
Key Takeaways
A temporary surplus lines license may be issued for up to 4 months and may not be renewed (s. 626.9271(1)(e)).
A temporary license is available only when no other person connected with the business is a licensed surplus lines agent (s. 626.9271(1)(b)).
A nonresident surplus lines applicant must hold home-state resident general lines and resident surplus lines licenses, with reciprocity (s. 626.9272(1)).
A nonresident surplus lines agent who becomes a Florida resident may operate for up to 90 days before obtaining a resident license (s. 626.9272(4)).
DFS waives the Florida exam for nonresidents who passed a surplus lines exam in their home state, and New York residents are not eligible.
Outline item III.A also cites s. 626.9271, the temporary license, and s. 626.9272, the nonresident license. Both have specific numbers and conditions that make easy exam questions: 4 months, not renewable, reciprocity, 90 days, and the exam exemption.
Temporary License: s. 626.9271
When a surplus lines agent dies or becomes unable to perform the agent's duties because of military service, illness, or other physical or mental disability, the business still needs a licensed agent to service policies, collect and remit taxes, and wind things down. DFS may, in its discretion, issue a temporary license and appointment.
Who may receive it
The agent's employee, family member, business associate, or personal representative, to continue or wind up the business affairs of the surplus lines agent or agency.
Conditions
- The agent being replaced must have died or be unable to perform because of military service, illness, or physical or mental disability.
- No other person connected with the agent's business is licensed as a surplus lines agent.
- The proposed temporary licensee must be qualified for a regular surplus lines license except as to residence, examination, education, or experience.
- The application is made on DFS forms with statements and an affidavit.
- The license is valid for not more than 4 months and may not be renewed, either for the holder or for anyone else on behalf of the same agent or agency.
Other rules
- The applicant pays the applicable license and appointment fees under s. 624.501 before issuance.
- The holder may obtain a regular surplus lines license by passing the exam required by s. 626.927.
- Except as the section provides, the holder is subject to the same requirements and responsibilities as a regularly licensed agent, including filing, affidavits, tax, and records.
- Temporary licenses are excluded from the regular appointment-renewal cycle of s. 626.381 (s. 626.381(8)).
Nonresident License: s. 626.9272 (license type 91-20)
Eligibility
DFS may issue a nonresident surplus lines license, on written application and payment of s. 624.501 fees, to a nonresident individual who:
- is licensed in the home state as both a resident general lines agent and a resident surplus lines agent;
- is otherwise qualified under Florida law; and
- is from a state that reciprocates, meaning that under the home state's law Florida residents may be licensed there as nonresident surplus lines agents in a similar manner.
Requirements and limits
- The applicant must meet the same s. 626.927 requirements as a resident, excluding the experience or coursework and the examination (s. 626.9272(2)).
- DFS may refuse the license or appointment if grounds under ss. 626.611 or 626.621 exist.
- The license's authority is limited to the lines granted by the home state and the lines authorized under the Florida nonresident license (s. 626.9272(3)).
- A nonresident licensee who becomes a Florida resident may operate under the nonresident license and appointment for up to 90 days, and must become licensed as a resident within that time to keep transacting business (s. 626.9272(4)).
- Nonresident surplus lines agents are subject to the same requirements as resident agents, including ss. 626.913 to 626.937 (s. 626.9272(5)).
- DFS verifies the applicant's licensing status through the NAIC producer database if available (s. 626.9272(6)).
- A nonresident without a Florida office keeps the s. 626.930 records in the state of residence.
DFS reciprocity guidance on the exam
DFS applies an exam test based on the home state:
- A person who took and passed a surplus lines license exam in the home state is not required to take the Florida exam.
- A person whose home state does not require a surplus lines exam must pass the Florida surplus lines exam.
- Residents of New York are not eligible for a Florida surplus lines license.
DFS lists states that meet the exam exemption, including Georgia, Texas, Louisiana, North Carolina, and South Carolina. It lists states that do not, including Alabama, California, Illinois, Mississippi, and Tennessee.
Comparison
| Feature | Resident 1-20 | Nonresident 91-20 | Temporary |
|---|---|---|---|
| Statute | s. 626.927 | s. 626.9272 | s. 626.9271 |
| Base license | Florida resident general lines (2-20) | Home-state resident general lines and resident surplus lines | Qualified except for residence, exam, education, and experience |
| Coursework or experience | 60 hours or 1 year | Not required | Not required |
| Florida exam | Required | Not required if a home-state surplus lines exam was passed; DFS requires it when the home state has none | Not required; passing it converts to a regular license |
| Duration | Until terminated, with biennial appointment renewal | Until terminated; 90-day transition if the holder moves to Florida | Up to 4 months, not renewable |
A sole surplus lines agent becomes disabled, and no one else at the agency holds a surplus lines license. The agent's office manager seeks a temporary license. For how long can it be issued?
Up to 12 months, renewable once
Not more than 4 months, and it may not be renewed
Up to 90 days, renewable until the agent recovers
Indefinitely, until the agency is sold
Which licenses must a nonresident hold in the home state to qualify for a Florida nonresident surplus lines license under s. 626.9272?
Only a resident surplus lines license
Only a resident property and casualty adjuster license
Any resident insurance license plus a Florida 60-hour course
Both a resident general lines license and a resident surplus lines license
A Georgia resident holding a Florida nonresident surplus lines license moves to Jacksonville. What does s. 626.9272(4) require?
The agent may operate under the nonresident license for up to 90 days but must become licensed as a resident within that time
The agent must stop transacting business the day the move is completed
The nonresident license automatically converts to a resident license
The agent may continue indefinitely under the nonresident license
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