Principals with the Office of Insurance Regulation, Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund are reviewing the premium assessment base for Florida policyholders relating to multi-state risks when Florida is the home state, according to the Florida Surplus Line Service Office.
The FSLSO noted that after reviewing the language of the federal NRRA and provisions of SB 1816, it appears that the assessments levied against Florida policyholders will be limited to the portion of premium covering only the exposures in Florida and not the entire gross premium of the policy.
The FSLSO also noted Surplus lines agents and Independently Procured Coverage filers will be required to submit the gross policy premium allocated by state for multi-state new business and renewal policies, and any subsequent endorsements to those policies, effective on or after July 1, 2011. As provided, SB 1816 dictates that multi-state exposures filed with Florida will be taxed on the gross premium using the tax rates of the states applicable to the premium allocated for each state where the risk is located. Service fees will be calculated at Florida's fee on 100% of the gross premium of the policy.