Florida Surplus Lines Tax Shift from NIMA Explained

In Florida, the surplus lines tax is a significant cost for insurance companies. This tax is imposed on non-admitted insurance policies, also known as surplus lines.

The National Association of Insurance Commissioners (NAIC) model law, known as NIMA, governed the surplus lines tax in Florida until 2020. However, a new law was enacted that year, shifting the tax burden from the insurance companies to the insured themselves.

This change means that insured individuals and businesses will now pay the surplus lines tax directly, rather than the insurance companies.

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The surplus lines tax in Florida has undergone a change. The Florida Department of Financial Services (DFS) reduced the surplus lines tax from 5.0% to 4.94% effective July 1, 2020.

This reduction applies to all new and renewal policies with an effective date on or after July 1, 2020.

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Surplus lines insurance premiums have seen an uptick nationwide.

The Florida Surplus Lines Service Office has reduced its service fee, dropping from 0.175% to 0.15% effective April 1, 2016.

This fee reduction applies to surplus lines agents, insurers, and filers of independently procured coverage.

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Surplus lines insurance premiums are on the rise nationwide.

The Florida Surplus Lines Service Office has reported an increase in surplus lines insurance premiums across the country.

Surplus lines insurance is a type of insurance that is sold outside of the traditional insurance market.

This means that premiums for surplus lines insurance can be higher than those for traditional insurance.

The increase in premiums is likely due to a number of factors, including changes in the insurance market and increased demand for surplus lines insurance.

The surplus lines insurance market is subject to regulation by state insurance departments, but it operates outside of the traditional insurance market.

As a result, surplus lines insurance premiums can vary widely depending on the state and the type of insurance being sold.

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The Florida Surplus Lines Service Office (FSLSO) service fee has been reduced from 0.175% to 0.15% effective April 1, 2016.

This reduction applies to surplus lines agents, surplus lines insurers, and filers of independently procured coverage.

The fee reduction applies to all new and renewal policies/certificates with effective dates on or after April 1, 2016.

Florida has a complex relationship with the Nonadmitted Insurance Multi-State Agreement (NIMA). Florida's exit from NIMA takes effect June 1, making it the second state to leave the agreement after Louisiana.

This exit means that Florida will no longer be part of the agreement that allows participating states to share benefits. The Florida Office of Insurance Regulation commented that while NIMA achieved its intended benefits, they are disappointed that participation did not continue.

The Florida Surplus Lines Service Office (FSLSO) has taken on a new role as the central clearinghouse for NIMA, Inc. to collect and allocate surplus lines premium tax payments for multi-state surplus lines policies.

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Florida will be leaving the Nonadmitted Insurance Multi-State Agreement (NIMA) on June 1, marking the second state to exit the agreement after Louisiana last year.

This move was made by the Florida Office of Insurance Regulation (OIR) representatives, who stated that while NIMA achieved its intended benefits for participating states, they are disappointed with the outcome.

Florida becomes the second state to leave NIMA, following Louisiana's exit last year.

The representatives from the OIR expressed their disappointment with the outcome, despite NIMA achieving its intended benefits for participating states.

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The Florida Surplus Lines Service Office (FSLSO) plays a crucial role in the Non-Admitted Insurance Multi-State Agreement (NIMA), Inc.

FSLSO acts as the central clearinghouse for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies.

NIMA, Inc. contracted with FSLSO to provide Premium Tax Clearinghouse services, which allows for the efficient handling of surplus lines premium tax payments.

FSLSO sent notice of two changes on September 30, 2011, one of which relates to the EMPA tax, which gets paid to the Florida Division of Emergency Management as of October 1, 2011.

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The Florida Surplus Lines Service Office (FSLSO) has made some changes that affect surplus lines agents and insurers. The FSLSO service fee will drop from 0.175% to 0.15% effective April 1, 2016.

This fee reduction applies to all new and renewal policies/certificates with effective dates on or after April 1, 2016. I've seen firsthand how a reduction in fees can make a big difference for businesses.

The FSLSO has also been working with NIMA, the Non-Admitted Insurance Multi-State Agreement, to act as its central clearinghouse for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies.

As of July 1, 2020, the Florida surplus lines tax charged by the Florida Department of Financial Services (DFS) decreased from 5.0% to 4.94%. This reduction applies to all new and renewal policies with an effective date on or after July 1, 2020.

The tax applies to the total gross premium as defined in Florida Statute.