Florida removes diligent effort requirement for surplus lines

New Florida law HB 1549, effective July 1, 2025, removes the “diligent effort” requirement for surplus lines agents to place insurance with non-admitted carriers.

The law previously required an agent to first seek coverage from at least three admitted insurance companies (or, for property insurance on an insured dwelling with a replacement cost of $700,000 or more, from at least one admitted carrier) before placing coverage through a surplus lines insurer. In lieu of the “diligent effort” requirement, HB 1549 requires an addendum to the already required surplus lines disclosures which reads, “[a]dditionally, surplus lines insurers’ policy rates and forms are not approved by any Florida regulatory agency.” Any policyholder that acknowledges the disclosure by signature is now presumed to have been informed that “other coverage may be available.”

HB 1549 seeks to streamline the process and make it easier for insureds to seek coverage within the surplus lines market.  In doing so, Florida joins the trend of other states removing similar “diligent effort” requirements and lowering barriers to entry in the surplus lines market.