5.3 Records of the Surplus Lines Agent & Requests for Copies

The last part of outline item II.B.1 is s. 626.930, the surplus lines agent's record-keeping duty. Item II.B.2 adds s. 626.923, the duty to furnish copies on request. Section 626.939, the insured's duty to produce records on order, completes the picture. Retention periods and response deadlines here are frequent exam targets.

What the Record Must Contain: s. 626.930(1)

Each surplus lines agent must keep a full and true record of each surplus lines contract, including applications, certificates, cover notes, other confirmations, and any substitutions or endorsements. The record must show, as applicable:

Where and How Long

• Where: in the agent's office in Florida. A nonresident without a Florida office keeps the records in the agent's state of residence. All surplus lines business records must also be maintained in the agent's general lines agency office or managing general agency office (s. 626.930(3)).
• How long: the record must be kept for 5 years, and it must remain available and open for 5 years following expiration or cancellation of the contract.
• Access: the record must be open at all times to examination by the department or the FSLSO, without notice.

Compare the general rule in s. 626.561(2), which requires agents to keep records of premium payments for at least 3 years after payment. The surplus lines contract record rule is longer: 5 years after expiration or cancellation.

Consequences of moving or losing records

Removing the accounts and records of surplus lines business from Florida, or from a nonresident's home state, during the required retention period is a mandatory ground to deny, suspend, revoke, or refuse to renew the surplus lines appointment and all other licenses (s. 626.935(1)(b)). So is closing the office for more than 30 consecutive days (s. 626.935(1)(c)).

Copies on Request: s. 626.923

Within 30 days after a request by the department or the FSLSO, a surplus lines agent must furnish an exact copy of any and all requested policies, including applications, certificates, cover notes, other confirmations, and any substitutions or endorsements.

The department or FSLSO may also request, and the agent must furnish within 30 days, the agent's memorandum describing the substance of any change shown by a substitute document or endorsement, compared with the coverage as originally placed.

Information furnished under s. 626.923, and records examined under s. 626.930, are confidential and exempt from public records law if they would reveal information specific to a particular policy or policyholder (s. 626.921(8)).

The Insured's Duty to Produce: s. 626.939

Every person for whom insurance is procured or placed with an unauthorized insurer must, on order of the department, produce for examination all policies and other documents evidencing the insurance and disclose the gross premiums paid or agreed to be paid. Each refusal to obey the order is punishable, on conviction, by a fine of up to $500. The section does not apply to life or health insurance.

Compliance Routines That Work

1. One file per contract, holding the application, the insured's disclosure acknowledgment (required if the agent also acted as producer, and best practice otherwise), the binding authority, the countersigned evidence, endorsements and substitutes, and invoices showing tax and fees.
2. A retention clock that starts at expiration or cancellation, not at inception. A 3-year policy canceled in year 2 is kept 5 years from the cancellation date.
3. A 30-day response log for DFS and FSLSO requests, with memoranda ready for any substitute document.
4. No off-site moves of records outside Florida, or outside the home state for a nonresident, during the retention period.

Worked Timeline

A surplus lines policy incepts March 1, 2026 and expires March 1, 2027.

• The record must be kept until at least March 1, 2032, which is 5 years after expiration.
• If the insured had canceled on September 1, 2026, retention would run to September 1, 2031.
• If the FSLSO requests copies of the policy and an endorsement on June 10, 2027, the agent must furnish exact copies by July 10, 2027.