|August 27, 2014|
Previously published on August 13, 2014
The Florida Surplus Lines Service Office ("FSLSO") advised today, August 13, 2014, that the State of Delaware has enacted legislation impacting certain Florida surplus lines policies.
Detailed in Bulletin No. 14 issued this week by the Delaware Department of Insurance ("DDI"), the new Delaware law (HB 213 with House Amendment 1) will increase the tax payable on surplus lines business from 2 percent to 3 percent on all policies effective after July 30, 2014. Policies effective or before July 30, 2014 will be taxed at 2 percent.
This affects all single-state Florida policies filed with the FSLSO wherein exposure is added mid-term with Delaware locations and subsequently filed with the FSLSO.
For example: A single-state Florida policy effective August 1, 2014 is filed with the FSLSO. An endorsement adding Delaware exposure on August 15, 2014 would be filed with the FSLSO and taxed at the new rate of 3 percent.
The DDI notes that all updated forms will be available at www.delawareinsurance.gov no later than August 15, 2014.