Coverage Code Misclassification
Misclassification of coverage codes continues to be one of the most common findings identified during Florida Surplus Lines Service Office (FSLSO) compliance reviews. In most cases, the issue stems from coverage codes that do not accurately align with the coverage provided by the policy.
Coverage code misclassification directly affects an agent's compliance review score and may result in corrective action requests. Reviewing coverage codes at the point of filing remains a key control for reducing repeat findings and maintaining strong compliance performance.
Agents are reminded to reference the FSLSO Coverage Code resource when validating coverage classifications. The coverage code definitions are available on the FSLSO website at https://www.fslso.com/filing/coverage-codes and should be used to confirm appropriate coding. Please refer to this list regularly as you file policy data in SLIP+.
Surplus Lines Insurer Name Change
Effective August 21, 2025
Conifer Insurance Company (NAIC# 29734) changed its name to Triassic Insurance Company.
Market Insights - January 2026
HO-3 Coverage A Deep Dive
In this edition of Market Insights, we take a focused look at HO-3 Coverage A (dwelling) trends in Florida's surplus lines market, where recent data shows clear signs of pricing moderation and declining average premiums per policy.
Across surplus lines HO-3 policies with Coverage A limits between $100,000 and
$10 million, policy counts increased by 22 percent from 2024 to 2025, whereas total premium increased by only 5 percent. As a result, average premium per policy declined by approximately 14 percent year over year.
Download the full report below to explore HO-3 Coverage A trends and what they signal about current market conditions.
AM Best Lowers Prime Insurance Company
From A to A-
AM Best has lowered the Financial Strength and Long-Term Issuer Credit Rating from A (Excellent) to A- (Excellent). Additionally, AM Best has placed these Credit Ratings under review with negative implications.
These rating actions reflect AM Best's concerns related to the adequacy of the company's loss reserves and its decreasing risk-adjusted capitalization contributing to a lower overall balance sheet strength assessment, and re-casted past years' operating results that are no longer supportive of a "strong" operating performance assessment.
Prime Insurance Company
TOP 3 LINES OF BUSINESS | 2024:
Other Liability (Claims-Made)
Other Liability (Occurrence)
EMPA Exempt Feature in FSLSO SLIP+
On October 1, 2025, FSLSO implemented an enhancement to SLIP+ that allows users to designate a policy as exempt from the Emergency Management Preparedness and Assistance (EMPA) surcharge for multi-insurer policies. If the EMPA assessment applies to a multi-insurer policy in which each insurer is assigned a different policy number, you can exempt EMPA from being charged on all insurers except for one.
It is important to note the EMPA Exempt option is at the policy level. The EMPA surcharge only applies to new business and renewal transactions. If you mark a policy as EMPA exempt, the system will remove the EMPA surcharge from all previous and future new business and renewal transactions under the policy.
If you are filing batch, the EMPA Exempt data element is optional. SLIP+ is programmed to only charge the EMPA surcharge on new business and renewal transactions for the applicable coverage codes. Please see the Tax/Fee/Assessment Table for the applicable coverage codes.
If EMPA does not apply to the coverage code for the policy you are filing for, please leave the EMPA Exempt field blank in your batch file. Additionally, you do not need to mark endorsements as EMPA exempt as the system only charges the surcharge on new business and renewal transactions. Selecting Yes for EMPA Exempt applies the exemption to the entire policy, not just the individual transaction.
This exemption pertains to situations where the EMPA surcharge has already been levied on another participating insurer's policy/transaction within the same multi-insurer policy. Users are reminded to utilize this option selectively, specifically for policies where each insurer holds a distinct policy number and the EMPA surcharge has been applied to another insurer's participation within the same policy.
Please be advised the exemption feature must not be misused to evade the payment of the EMPA surcharge. Any misuse or abuse of this option will be subject to investigation and potential repercussions, including but not limited to, referral to the Florida Department of Financial Services.
If you have any questions, please contact Agent Services at [email protected] or call 800.562.4496, option 1.
Inactive Agency License and TIQ Alerts
Following a recent agency license cleanup, we identified and deactivated a large number of agencies that were previously marked as active in our system but are no longer valid with the Department of Financial Services. This update ensures compliance and accuracy across all filings.
What You Need to Know
If you submit a transaction under an agency license that is no longer active in our database, you will receive the following TIQ in your SLIP+ account:
TIQ: Eligible Agency Not Found (NAY)
This TIQ occurs when a transaction is filed under an agency license that is inactive in our system.
How to Resolve the TIQ:
1. Update your filing to reflect an active agency license.
2. Email our Agent Services team to confirm the correction and resolve the transaction in question.
An FSLSO staff member will advise if additional steps are required to update your agency information. If you have any questions, please contact Agent Services at [email protected].
FSLSO On Tour Kick-Off
A new year, means new tour dates!
Join FSLSO as we kickstart the 2026 customer forum tour.
What You Need To Know:
Date: February 26, 2026
Location: Del Frisco's | Double Eagle Steakhouse
Doors Open: 10:30 AM
If complimentary lunch wasn't enough, maybe one hour of CE credit is! Our team will be hosting Florida Surplus Lines: Everything You Need to Know About This Dynamic Market during the event.
Mentee Spotlight
Our leaders have been busy connecting with the future generation of surplus lines, and we want to spotlight a few of these individuals.
