5.1 Requirements for Placement & Who Does What

Domain II, Agent Responsibilities, begins with outline item II.A, Requirements for Placement of Surplus Lines Insurance, which cites s. 626.914. This section connects the definitions to the actual placement workflow: who may originate business, who may place it, what the surplus lines agent must check, and where the legal responsibility sits.

The Definitions That Drive Every Placement: s. 626.914

1. Surplus lines agent: an individual licensed to handle placement of coverage with unauthorized insurers, and to place coverage with authorized insurers for which the licensee is not licensed as an agent. The second half matters: a surplus lines agent may also broker business to an admitted carrier that has not appointed them.
2. Eligible surplus lines insurer: an unauthorized insurer made eligible by the office.
3. To export: to place, with an unauthorized insurer under the Surplus Lines Law, insurance covering a subject resident, located, or to be performed in Florida.

The surplus lines license authorizes placement solely of property, marine, casualty, or surety coverage originated by general lines agents (s. 626.927(1)). It does not cover life or health insurance.

Who Originates and Who Places: s. 626.929

Two points follow. First, the business must come from a Florida-licensed general lines agent who is appointed and licensed for the kinds of insurance involved, and the surplus lines agent may share compensation with that agent. Second, the originating agent does not need a surplus lines license to produce the business, but it may not negotiate with or bind the unauthorized insurer itself, because that would be representing an unauthorized insurer under s. 626.901.

Personal Accountability: s. 626.9295

A surplus lines agent who is an officer, director, stockholder, or employee of an incorporated surplus lines agency remains personally and fully liable for wrongful acts, misconduct, or Code violations committed by the agent or by anyone under the agent's direct supervision and control while acting for the corporation. Incorporation does not shield the licensee.

The Surplus Lines Agent's Placement Checklist

Before binding:

1. Export eligibility. Rate, form, and deductible conditions of s. 626.916(1)(a) to (c), or the s. 626.917 track for marine and aviation.
2. Insured disclosure. Confirm the s. 626.916(1)(d) acknowledgment was obtained. The retail agent usually obtains it.
3. Insurer eligibility. Confirm the insurer is on the eligible list (s. 626.918), or use the s. 626.918(5) and (6) procedure for any unlisted portion.
4. Authority to bind. Under s. 626.922(2), the agent may not issue evidence of coverage or represent that coverage has been granted without prior written authority from the insurer, information from the insurer that coverage was granted, or an actual policy.

After binding:

1. Evidence of insurance. Deliver the policy or a certificate, cover note, or confirmation with the required contents (s. 626.922).
2. Stamping. Put the required agent information and statutory statements on the documents (s. 626.924).
3. Collections. Collect the 4.94% tax, the service fee, any EMPA surcharge, and any assessment from the insured, without absorbing or rebating them (ss. 626.932, 626.9325).
4. Filing. File the transaction with the FSLSO within 30 days of its effective date (FSLSO filing rule under s. 626.921).
5. Quarterly compliance. File the affidavit and pay the tax and fees by the 45th day after the quarter (ss. 626.931, 626.932, 626.9325).
6. Records. Keep the full record for 5 years (s. 626.930).

Where the Risk Is Located

Section 626.901(1) adds a rule for risks outside Florida. If the property or risk is located in another state, the insurance may be placed only with an insurer authorized in that state or with an insurer a licensed broker of that state may lawfully use, subject to the exceptions in s. 626.901(4). For multistate risks, the federal NRRA assigns regulatory and tax authority to the insured's home state. When Florida is the home state, s. 626.932(3) taxes the entire gross premium at the Florida rate.

Scenario Walk-Through

A Tampa retail agent holds a 2-20 license and an appointment with several admitted carriers. A client operates a crane-rental business that admitted carriers will not write.

• The retail agent sends the submission to a wholesale surplus lines agent. The retail agent may not negotiate directly with the London syndicate that will quote.
• The retail agent obtains the client's signed disclosure. Since July 1, 2025, no declinations are required.
• The surplus lines agent confirms the syndicate is eligible, checks the rate and deductibles against the export conditions, and binds only after receiving written authority from the syndicate.
• The surplus lines agent issues a stamped cover note, collects the tax, fee, and surcharge, and files within 30 days. It may share its commission with the retail agent under s. 626.929(1).
• If the retail agent had hidden a prior crane-collapse loss, it would violate s. 626.929(3) by knowingly misrepresenting a material fact to the surplus lines agent.