7.3 The FSLSO Service Fee (ss. 626.921(3)(f), 626.9325)

The service fee funds the FSLSO. It is authorized by s. 626.921(3)(f) and implemented by s. 626.9325. The exam tests the statutory maximum, who sets the actual rate, who pays it, when it is remitted, and its exemptions. Because the rate changed on July 1, 2026, expect questions that turn on a policy's effective date.

Statutory Framework

• Authority and cap: the FSLSO collects from each surplus lines agent a service fee of up to 0.3%, as determined by the office (OIR), of the total gross premium of each policy or document reported. The insured pays it (s. 626.921(3)(f)).
• Collection: the surplus lines agent collects the fee from the insured at delivery of the policy or other initial confirmation, in addition to the full gross premium (s. 626.9325(1)).
• No absorbing or rebating: as with the tax, the agent may not absorb the fee or rebate any part of the fee or of the agent's commission (s. 626.9325(1)).
• Payment: the agent pays the FSLSO on or before the 45th day after each calendar quarter the fees for all policies reported during the previous quarter, under the FSLSO plan of operation (s. 626.9325(2)(a)).
• Interest: delinquent fees bear interest at 9% per year, compounded annually (s. 626.9325(2)(b)).
• Multistate: if Florida is the NRRA home state, the fee is computed on the gross premium (s. 626.9325(3)).
• Exemption: the fee does not apply to risks of the state government or its agencies, or any county or municipality or its agencies (s. 626.9325(4)). Unlike the tax, there is no marine or aviation exemption, so s. 626.917 risks still pay the fee.
• Use: the FSLSO uses the fees to fund its operations (s. 626.9325(5)).
• Base: premium has the same broad definition as for the tax and specifically includes the s. 626.916(2) per-policy fee (s. 626.9325(6)).

Current and Historical Rates (FSLSO Table)

The rate is set by the effective date of the new or renewal policy, and later endorsements on that policy follow the same rate.

The July 2026 reduction was announced in FSLSO Bulletin 2026-02. It applies to new and renewal surplus lines and independently procured coverage policies effective on or after July 1, 2026. Endorsements, audits, installments, cancellations, and return premiums on policies that incepted before July 1, 2026 keep the 0.06% rate.

Service Fee vs. Tax

Worked Examples

Example 1. A $75,000 excess liability policy is effective August 15, 2026. Service fee = $75,000 x 0.0003 = $22.50.

Example 2. The same premium on a policy effective June 1, 2026: Service fee = $75,000 x 0.0006 = $45.00.

Example 3. A cargo policy written under s. 626.917 has $40,000 of premium and is effective September 1, 2026. Tax = $0 because of the s. 626.917 exemption. Service fee = $40,000 x 0.0003 = $12.00.

Example 4. A policy effective February 1, 2026 has an additional-premium endorsement of $5,000 effective October 1, 2026. Service fee = $5,000 x 0.0006 = $3.00, because the rate follows the February 2026 inception date.

Exam Traps

• "The service fee is set at 0.3% by statute." False. The statute sets a maximum of 0.3%, and OIR determines the actual rate.
• "The retail agent keeps the service fee." False. It funds FSLSO operations and is paid to the FSLSO.
• "A city's policy pays the service fee but not the tax." False. Government risks are exempt from both. The EMPA surcharge is the charge that still applies to governmental entities.
• "An endorsement effective after July 1, 2026 always gets 0.03%." False. The rate follows the policy's effective date, not the endorsement's.

Renewal Tip from the FSLSO

If a policy that incepted before July 1, 2026 is extended by an additional-premium endorsement past its anniversary, the FSLSO may direct the filer to file a renewal transaction effective on the anniversary date. That places the new term at the current 0.03% rate instead of carrying the old 0.06% rate forward.