What is the primary purpose of the Florida Surplus Lines Law?

The primary purpose of the Florida Surplus Lines Law is to regulate the placement and functioning of surplus lines insurance. This legislation was established to provide a framework for the surplus lines market, which is essential for providing coverage for risks that cannot be adequately covered by licensed insurers in the standard market. Surplus lines insurers typically offer coverage for high-risk or unique exposures that may not be available through regular insurance markets, ensuring that consumers still have options for coverage.

Regulation under this law includes requirements for obtaining a surplus lines license, mandates regarding the disclosure of the risks associated with obtaining surplus lines insurance, and standards ensuring that these insurance products are handled appropriately. By regulating this market, the law aims to protect consumers and maintain the integrity of the insurance system in Florida, helping ensure that surplus lines transactions are conducted fairly and transparently.