FINANCIAL SERVICES

COMMISSION

RON DESANTIS
GOVERNOR

JAMES UTHMEIER
ATTORNEY GENERAL

BLAKE DOWLING
CHIEF FINANCIAL OFFICER

WILDIN SIMPSON
COMMISSIONER OF
AGRICULTURE

OFFICE OF INSURANCE REGULATION

MICHAEL YAWORSKY
COMMISSIONER

VIA EMAIL AND CERTIFIED MAIL

Robert Preston Wilson, Esq.
Assistant General Counsel
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399
Telephone: (850) 413-4174
Email: preston.wilson@floir.com

ATTN: MARK SHEALY
EXECUTIVE DIRECTOR
FLORIDA SURPLUS LINES SERVICE OFFICE, INC.
1441 Maclay Commerce Drive,
Suite 200,
Tallahassee, FL 32312
Email: mshealy@flso.com

Re: Florida Surplus Lines Service Office 2025 Amended Plan of Operation

Dear Mr. Shealy,

Please be advised that the Office of Insurance Regulation ("OIR") has approved the Florida
Surplus Lines Service Office's ("Service Office") Amended Plan of Operation for the year 2025
("2025 Amended Plan of Operation"). The enclosed order will be sent to you by certified mail
and email. Please note the following enclosures:

1. The OIR Order dated January 28, 2026, approving the Service Office's 2025 Amended Plan of Operation.
2. Exhibit A, a copy of the 2025 Amended Plan of Operation submitted to the OIR for approval by the Service Office, and
3. A copies furnished to page.

If there are any follow-up questions or concerns, please don't hesitate to reach out to our office.

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Mark Shealy
January 29, 2026
Page 2 of 2

Thank you,

Robert Preston Wilson, Esq.
Assistant General Counsel
Florida Office of Insurance
Regulation
200 East Gaines Street
Tallahassee, Florida 32399
Telephone: (850) 413-4174
Email: preston.wilson@floir.com

CC:
Kevin Jacobs, Chief of Staff
Jane Nelson, Deputy Commissioner
Property & Casualty Financial
Oversight
Bradley Trim, Director
Property & Casualty Financial
Oversight

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FILED

JAN 28 2026

INSURANCE REGULATION
Developed by:

OFFICE OF INSURANCE REGULATION

MICHAEL YAWORSKY
COMMISSIONER

IN THE MATTER OF:

FLORIDA SURPLUS LINES SERVICE
OFFICE

ORDER

THIS CAUSE came for consideration upon the submission by the FLORIDA
SURPLUS LINES SERVICE OFFICE ("SERVICE OFFICE") to the FLORIDA OFFICE OF
INSURANCE REGULATION ("OFFICE"), of its Amended Plan of Operation for the year 2025
("2025 Amended Plan of Operation"), pursuant to section 626.921(5), Florida Statutes (2025).
Following a complete review of the record, and upon consideration thereof, and being otherwise
fully advised in the premises, the OFFICE hereby finds as follows:

1. The OFFICE has jurisdiction over the subject matter and the parties herein.

2. Pursuant to section 626.921(1) the legislature created the SERVICE OFFICE, a
   nonprofit association, to promote the orderly access to surplus lines insurance in the state of
   Florida, to enhance the number of types of insurance products available to consumers, to provide
   a source of advice and counsel for the benefit of consumers, surplus lines agents, insurers, and
   government agencies regarding the operation of the surplus lines insurance market, and to protect
   the revenues of this State.

3. Pursuant to section 626.921(5), the SERVICE OFFICE must submit to the OFFICE
   for approval amendments to the plan of operation of the SERVICE OFFICE pursuant to section
   626.921(5).

4. On November 5, 2025, the SERVICE OFFICE submitted its 2025 Amended Plan
   of Operation (attached as Exhibit A) to the OFFICE. The 2025 Amended Plan of Operation
   included, among other things, the following:
   a. Section 6. Board of Governors, G. The Chairman shall appoint all committees and
   subcommittees: Defines the purpose and structure of committees to be appointed
   by the Chairman.
   b. Section 9. Code of Conduct: Updates title of Assistant Director to Director.

5. The plan of operation and any amendments thereto is effective upon the OFFICE's
   approval of the plan.

6. The SERVICE OFFICE requests that the OFFICE approve the 2025 Amended Plan
   of Operation, pursuant to section 626.921(5).

IT IS THEREFORE ORDERED THAT

1. The OFFICE hereby APPROVES the SERVICE OFFICE's Amended Plan of Operation submitted to the OFFICE on November 5, 2025.

DONE AND ORDERED this 28 day of January, 2026.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of this ORDER was sent by Certified
Mail on this 29 day of January, 2026, to:

Mark Shealy
Executive Director
Florida Surplus Lines Service Office
1441 Maclay Commerce Drive, Suite 200
Tallahassee, FL 32312
Email: mshealy@flso.com

Robert Preston Wilson, Esq.
Assistant General Counsel
Florida Bar number 1070287
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399
Telephone: (850) 413-4174
Email: preston.wilson@floir.com

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NOTICE OF RIGHTS

Pursuant to sections 120.569 and 120.57, Florida Statutes, and chapter 28-106, Florida
Administrative Code, you have the right to request a proceeding to contest this action by the
Office of Insurance Regulation (Office) by filing a petition. Your petition must be in writing and
directed to:

Agency Clerk
Office of Insurance Regulation
647 Larson Building
200 East Gaines Street
Tallahassee, Florida 32399-0300

The petition must be transmitted by U.S. Mail or hand delivered. Petitions transmitted by
facsimile transmission or electronic mail will not be accepted for filing. Your petition
challenging this action must be received by the Office at the above address not later than twenty-
one (21) days from the date on which you receive this notice. Any document received by the
Office before 5:00 p.m. shall be filed as of that day but any document received after 5:00 p.m.
shall be filed as of 8:00 a.m. on the next regular business day. If you do not timely file a petition,
your right to a proceeding shall be deemed waived and the Office's agency action will be final.

If you desire to challenge this agency action and do not dispute the material facts as
found by the Office, you may request a proceeding pursuant to sections 120.569 and 120.57(2).
A petition for an administrative proceeding not involving disputed issues of material fact must
comply with the content requirements of section 120.569(1) and Rule 28-106.301, Florida
Administrative Code.

If you desire to challenge this agency action and dispute the material facts as found by the
Office, you may request a proceeding pursuant to sections 120.569 and 120.57(1). A petition for
an administrative proceeding involving disputed issues of material fact must comply with the
content requirements of section 120.569(1) and Rule 28-106.2015, Florida Administrative Code.

A petition that is not in substantial compliance with the applicable rules and statutes will
be dismissed.

Any request for an administrative proceeding received prior to the date of this notice shall
be deemed abandoned unless timely renewed in compliance with the guidelines as set out above.

Mediation under section 120.573, Florida Statutes, is not available for this agency action.

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EXHIBIT A

AMENDED PLAN OF OPERATION

A nonprofit association created by the 1997 Florida Legislature and incorporated
pursuant to Chapter 617, Florida Statutes.

Section 1. NAME.
This organization shall be known as the Florida Surplus Lines Service Office, Inc.

Section 2. PURPOSE.
The Florida Surplus Lines Service Office, Inc. is a nonprofit association
incorporated pursuant to Chapter 617, Florida Statutes, which was created by the 1997
Florida Legislature to protect consumers seeking insurance in the state of Florida, permit
surplus lines insurance to be placed with approved surplus lines insurers, establish a self-
regulating organization which will promote and permit access to surplus lines insurance,
increase the number and types of insurance products available to consumers in
Florida, provide a source of advice and counsel to consumers, surplus lines agents,
insurers, and government agencies relating to the operation of the surplus lines insurance
market, and protect the revenues of the state of Florida.

Section 3. DEFINITIONS.
As used in this Plan of Operation:
A. "Association" or "Service Office" or "FSLSO" means the Florida Surplus
Lines Service Office, Inc. established pursuant to Section 626.921, Florida Statutes, and
incorporated pursuant to Chapter 617, Florida Statutes.
B. "Board" means the Board of Governors of the Service Office as determined
and constituted under Section 626.921(4), Florida Statutes.
C. "Chief Financial Officer" means the Chief Financial Officer of the state of
Florida, who may also be known as the Treasurer.
D. "Department" means the Department of Financial Services of the State of
Florida.
E. "Commission" means the Financial Services Commission.
F. "Office" means the Office of Insurance Regulation of the Financial Services
Commission. The head of the Office is the Director of the Office, who may also be
known as the Commissioner of Insurance.
G. "Plan" means the Plan of Operation of the Service Office.

Section 4. APPLICATION.
All licensed surplus lines agents shall be members of the Association and shall
report to and file with the Service Office information specified by the Plan and must
otherwise comply with the Plan.

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The FSLSO should be informed within sixty (60) days if there is a change in
address or other pertinent information so that the FSLSO may properly direct all
necessary reports and correspondence.

A surplus lines agent shall, within thirty (30) days after the date of request by the
FSLSO, furnish the FSLSO an exact copy of any and all requested policies, including
applications, certificates, cover notes, or other forms of confirmation of insurance
coverage or any substitutions thereof or endorsements thereto. The confirmation shall
also include the exact same information as the insured's copy in accordance with Section
626.923, Florida Statutes.

The records of all licensed surplus lines agents shall be open for examination at
all times by the Department or the FSLSO without notice and shall be kept available and
open for five (5) years after expiration or cancellation of the contract.

Section 5. EFFECTIVE DATE.
The Plan and any subsequent amendments hereto, shall become effective upon
written approval by order of the Office, except that this amendment acknowledging the
incorporation of the Service Office under Chapter 617, Florida Statutes, shall not be
effective until the date of incorporation.

Section 6. BOARD OF GOVERNORS.
A. The Service Office shall operate pursuant to the Plan of Operation under the
supervision of a Board of Governors or its designees.
B. The Board of Governors shall consist of nine (9) persons as follows:
(1) Five (5) individuals nominated by the Florida Surplus Lines Association and
appointed by the Department from the regular membership of the Florida Surplus Lines
Association.
(2) Two (2) individuals appointed by the Department, one from each of the two
largest domestic agents' associations, each of whom shall be licensed surplus lines
agents.
(3) The Insurance Consumer Advocate.
(4) One (1) individual appointed by the Department, who shall be a risk manager
for a large domestic commercial enterprise.
C. Board members shall be appointed by and serve at the pleasure of the
Department for a three-year term. Each term shall begin on the first day of January
regardless of when during the financial year the Department makes the appointment.
Board members may be reappointed for subsequent terms. Board members shall serve
until their successors are duly appointed by the Department.
D. Vacancies on the Board shall be filled for the remaining period of the vacating
Board Member's term by the Department in accordance with (B) above.
E. The Board of Governors shall, at its annual meeting, elect one of its members
to serve as Chairman of the Board, another member to serve as Vice Chairman of the
Board, and another member to serve as Secretary/Treasurer of the Board.

F. Any vote of the Board whenever in the judgment of the Board the best interests of
the Service Office would be served thereby.
G. The Chairman shall appoint all committees and subcommittees.
(1) The Chairman shall appoint an Executive Committee of three (3)
Board members, which shall consist of the Chairman, Vice-Chairman, and the
Secretary-Treasurer. The Executive Committee shall have the power to act
between Board meetings or on the business of the Service Office with respect to
unusual or emergency matters that, in the judgment of the Chairman, should not
be deferred until the next Board meeting. Such actions shall be reported to the
next Board meeting for approval by the Board.
(2) The Chairman shall appoint an Audit Committee of no less than three (3)
Board members. The Audit Committee will meet no less than annually to
address and review the reports, presentation and communication with or received
from the independent auditors. The Audit Committee is responsible for
monitoring the integrity of the financial statements of the Association, the
independent auditor's qualifications and independence, the performance of the
internal audit functions and independent auditors, and compliance by the Service
Office with legal and regulatory requirements.
(3) The Chairman shall appoint an Investment Committee. The Investment
Committee shall be made up of no less than (3) Board members. It will meet no
less than annually to review the investment policy and results. Any policy
amendments would be reported to the Board for approval. The Investment
Committee is responsible for assisting the Board in ensuring that investment
activities align with the organization's policy objectives and risk tolerance.
(4) The Chairman shall appoint a Compensation Committee. The
Compensation Committee shall be made up of no less than (3) Board members. It
will meet as often as is necessary for determining the Board's obligations relating to human
resources and compensation policy and related matters.
(5) The Chairman shall appoint a Budget Committee consisting of the
Service Office's Executive Committee. The Budget Committee will meet no less
than annually. The Budget Committee shall assist the Board with respect to its'
overall responsibility to review and approve the Service Office's annual budget,
financial management and investment planning.
H. The Chairman may appoint non-Board members to committees established by
the Board, which non-Board appointee shall serve at the pleasure of the Board.
I. The Chairman shall call all meetings of the Board. However, a meeting of the
Board shall also be held within fourteen (14) days after receipt of written requests
delivered to the Chairman by any three (3) members of the Board unless a different
meeting date is otherwise agreed to by the three (3) requesting members. All meetings
of the Board shall be held in compliance with Chapter 286, Florida Statutes, and subsequent
amendments thereto, to the extend required by law. Public notice shall be given at least
fourteen (14) days in advance of all non-emergency meetings held by the Board or by any
committee established by the Board that is subject to Chapter 286, Florida Statutes.

J. The Vice Chairman shall serve as Chairman when the Chairman is unavailable
to serve.
K. At any meeting of the Board, each Board member shall have one (1) vote.
L. Five (5) members of the Board shall constitute a quorum for the transaction of
business, and acts of a majority of the Board members present at a meeting at which a
quorum is present shall be the acts of the Board.
M. At any Board of Governors meeting voting by proxy shall not be permitted
except that the office of the Insurance Consumer Advocate may send a representative of
that office to attend any meeting, and that representative shall have the right to vote as the
Insurance Consumer Advocate.
N. Members of the Board or any Committee members shall receive reimbursement
from the Association for their actual and necessary expenses incurred in attending Board
meetings, and in performing Association business in accordance with the Association
adopted Travel and Reimbursement policy.
O. The Board may conduct Board meetings by telephonic conference call so long
as said conference call permits the general public to be included as parties to the conference
call and to hear all Board members in attendance and other speakers at the meeting. A
Board member may participate telephonically in any Board meeting.

Section 7. OPERATIONS.
A. The official address of the Service Office shall be the permanent office of the
Service Office.
B. The Service Office shall conduct the following activities:
(1) Receive, record, and review a copy of or information on all surplus lines
insurance policies or documents.
(2) Maintain a copy of or information on surplus lines insurance policies or
documents reported to the Service Office and prepare monthly reports for the Office in
such forms approved by the Commission.
(3) The information specified in paragraphs (1) and (2) above will be submitted
to and is maintained by the Service Office in electronically in a format submitted to and
approved by the Commission.
(4) Make information available electronically to each surplus lines agent on policies
reported to this office for the agent's verification. The agent's quarterly report affidavit
will be executed and filed with the Service Office as required. Records maintained by the
Service Office will be kept for five (5) years or as required by law, whichever is longer.
(5) Collect and remit to the Department the surplus lines premium receipt tax as
provided for in Section 626.932, Florida Statutes.
(6) Receive and record a copy of or information on every insured that procures or
causes the procured insurance with an unauthorized foreign or alien insurer as provided
for in Section 626.938 (1), Florida Statutes.
(7) Collect and remit to the Department the five percent (5%) tax on Independently
Procured Coverage as provided for in Section 626.938 (3), Florida Statutes.
(8) Perform a reconciliation of the policies written in the surplus lines market, as
provided by surplus lines insurers, with the policies reported to the Service Office by the

surplus lines agents, and prepare and deliver to the Office a report on the results of the
reconciliation of the policies in such forms approved by the Commission.
(9) Submit an annual budget for the operation of the Service Office to the Office
for review and approval.
(10) Collect from each surplus lines agent and independently procured coverage
(IPC) policyholder on a quarterly basis a service fee of up to three-tenths percent (0.3%)
as determined by the Office, of the total gross premium of each surplus lines policy reported
by an agent or IPC policyholder for the previous calendar quarter under the Plan for the
cost of operating the Service Office. The service fee shall be paid by the insured. The
Service Office will bill and collect the service fee on a quarterly basis.
(11) Collect from each surplus lines agent and IPC policyholder on a quarterly basis
an assessment, as imposed by Citizens Property Insurance Corporation, the Florida
Hurricane Catastrophe Fund and the $2.00/$4.00 Emergency Management Preparedness
and Assistance Surcharge.
(12) Employ and retain such personnel as are necessary to carry out the duties of
the Service Office.
(13) Borrow money, as the Board deems advantageous or necessary, to carry out
the purposes of the Service Office. The Chairman or the Executive Director or any other
officer of the Service Office directed by resolution of the Board may negotiate and execute
loan agreements authorized by the Board.
(14) Open one or more bank accounts. Open a separate trust account under the joint
control of the Service Office and the Department for the collection of surplus lines
premium tax. Reasonable delegation of deposit and withdrawal authority to such accounts
for Service Office business may be made consistent with prudent fiscal policies.
(15) Enter into contracts, as necessary, to affect the purpose of the Service Office.
(16) Perform other acts to facilitate and encourage compliance with the surplus
lines law of the State of Florida and rules adopted thereunder.
(17) Provide other services incidental or related to the purposes of the Service
Office.
(18) Contract for an annual audit to be furnished to the Office. The Audit
Committee Chair or his or her designee may sign the audit engagement letter if required
by governmental auditing standards or recommended best practices.
(19) Make a written request to the Office for eligibility of an unauthorized insurer
to become an eligible surplus lines insurer provided by Section 626.915, F.S.
(20) Procure such bonds and insurance covering the Service Office, the Board
members, officers, employees, and agents of the Service Office, and its properties and
activities as it determines to be appropriate for the Service Office and the members.
(21) The Service Office shall prepare, maintain, and distribute a procedures manual
to each surplus lines agent setting forth the procedure for submitting surplus lines insurance
information to the Service Office and other matters germane to the operation of the Service
Office. The manual shall be prepared in cooperation with the Department, and any
changes, updates, or amendments shall be submitted to the Department for review prior to
distribution.
(22) Take any action to administer and implement the provisions of a cooperative
reciprocal agreement entered into by the Department of Financial Services and the Office
of Insurance Regulation as authorized by Section 626.9362, F.S., and the federal

Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) including providing
clearinghouse operational and technology services as contemplated by the Nonadmitted
Insurance Multi-State Agreement (NIMA) entered into by the State of Florida pursuant to
the NRRA.
(23) Annual Summary of Operations. The Service Office shall prepare an annual
summary of operations which contains information on transactions, conditions, operations,
and investments during the preceding year; such report is to contain such matters and
information as prescribed by and in such form as approved by the Board. The Commission
or the Office may at any time require the Service Office to furnish additional information
with respect to any matter connected therewith and considered to be material in evaluating
the economic, efficient, fair and nondiscriminatory operation of the Service Office.

Section 8. EXECUTIVE DIRECTOR.
The Chairman shall nominate an Executive Director for the Service Office, subject to
approval by the Board. The Chairman or the Chairman's designee shall negotiate and
execute the employment contract of the Executive Director subject to any directives or
guidelines that may be adopted by the Board. The Board shall establish the
compensation of the Executive Director based on the recommendation of the Chairman.
The Executive Director shall be responsible for the day-to-day operation and
management of the Service Office and for carrying out the objectives of the Service
Office consistent with the directions of the Board, this Plan and Sections 626.901-
626.939, F.S., and in furtherance thereof, the Executive Director shall:
A. Establish an initial Association office in Tallahassee, Florida, and is duly
authorized and directed to take such measures as are necessary to establish and assure the
efficient operation of such office;
B. Open Bank account(s) and incur the necessary expenditures to
conduct the business of the Association;
C. Hire and supervise personnel to carry out the business of the Association subject
to any guidelines or procedures as may be adopted by the Board;
D. Locate and employ individuals or entities to provide administrative or
professional services to effectuate the Plan of Operation, subject to approval by the Executive
Committee;
E. Enter into contracts for the leasing of office space and for the purchase and/or
lease of furnishings and equipment for the operation of the Association subject to the
approval of the Executive Committee;
F. Incur and approve office expenses such as water, electric, janitorial, telephone,
security, and any other similar expenses necessary to operate the office;
G. Incur on behalf of the Association and approve office expenses to conduct
Association business such as machine, copying, postage, facsimile, transmittals,
maintenance contracts for office equipment, stationery and any other similar expenses
necessary to operate the office;
H. Approve and prepare the payroll and take the necessary steps to timely meet
payroll through a proper signatory.
I. Arrange for proper and timely notice of all meetings of the Board of Governors.
Timely prepare the agenda with the approval of the Chairman for each meeting and provide

a copy of same to each member as soon as practicable prior to each meeting. Board
members desiring to place an item on the agenda shall do so through the Executive Director
subject to the approval of the Chairman, and any member of the public desiring to appear
before the Board shall communicate such requests to the Chairman.
J. Approve all travel, lodging, and per diem expenses, and devise appropriate
guidelines and forms for presenting the same for reimbursement (the Executive Director's
travel, lodging and per diem shall be approved by the Chairman pursuant to travel, lodging
and per diem expense guidelines previously approved by the Board);
K. Prepare budgets for the operation of the Association to be approved by the
Board, and arrange for an annual audit of the same.
L. Maintain the books and records of the Association and arrange for the proper
auditing and review of the Association operations. Such audits shall be submitted to the
Board for review as expeditiously as possible.
M. Negotiate the terms of and execute contracts. The Board or Executive
Committee must authorize contracts over one hundred thousand U.S. dollars ($100,000).
Once authorized, the Executive Director shall have the authority to negotiate the terms and
conditions of the contract.

Section 9. CODE OF CONDUCT.
A. Employee Security Checks:
(1) Any person occupying the staff positions of Executive Director, Chief
Financial Officer or Director is subject to a security background check,
including fingerprinting, as a condition of employment.
(2) A person can be disqualified for employment in any designated
position by reason of:
a. The conviction or prior conviction of a crime which is reasonably
related to the nature of the position sought or held by the individual; or
b. The entering of a plea of "no contest" or, when a jury verdict of
guilty is rendered but adjudication of guilt is withheld, with respect to
a crime which is reasonably related to the nature of the position sought or
held by the individual.
(3) The Association shall give the office written notice of any change of
personnel among the Executive Director, Chief Financial Officer, or
Director positions within 45 days of such change. The written notice at
a minimum shall contain the information required by Section
628.051(B), Florida Statutes.

B. Notification of Suspected Insurance Fraud or Criminal Misconduct
(1) The Executive Director and/or the Chairman of the Board of
Governors must notify the Division of Insurance Fraud within 48
hours of any suspected insurance fraud by an employee or that is
uncovered as part of the Association's business activities.

(2) The Executive Director and/or the Chairman of the Board of
Governors must notify the appropriate law enforcement authority
of any suspected criminal misconduct by an employee or that is
uncovered as part of the Association's business activities.

C. Conflicting Employment or Contractual Relationship
No employee shall permit their private interests to conflict with the proper discharge
of their official duties for the Association nor shall they use their position or
knowledge gained therein in such a manner as to give the appearance of such conflict.
Conflicts of interest may be considered to exist in those instances where the actions or
activities of an individual on behalf of Association may result in (a) improper
personal gain or advantage to the individual, (b) unnecessary adverse effect upon the
Association interest, or (c) improper gain or advantage to a third party. Any person
who, for whatever reason, believes they have a conflict of interest, shall declare such
conflict to the Board, and shall abstain from participating in any vote or decision
pertaining to such conflict.

D. Conflict of Interest
(1) All employees must disclose to the Executive Director and/or Chairman of
the Board of Governors any activity which is a potential or actual conflict
of interest. "Conflict of Interest" means a situation in which regard for a
private interest tends to lead to a disregard of a public duty or interest.
(2) No employee may be involved in a decision during the course of
Association duties with the knowledge that the decision will further the
employee's private interest.
(3) The Executive Director shall cause to be created and distributed an
employee "Code of Ethics".

E. Solicitation or Acceptance of Gifts
(1) No employee may accept any compensation, payment, or gift when the
employee knows, or with the exercise of reasonable care, should know, that it
was given to influence an act or decision the employee is expected to
participate in as part of his or her job duties.
(2) No employee may solicit anything of value to the employee including a gift,
loan, favor, promise of future employment, or service based upon any
understanding about the outcome of an act or decision of the employee.

F. Post-employment Restrictions
Not any Executive Director, Chief Financial Officer, or Director of the Association may
personally represent another person or entity for compensation before the
Association for a period of two years following vacation of their position, unless
employed by a state agency.

G. Reporting Receipt of Gifts.
All FSLSO employees must file a written statement with the Board of
Governors and the Office of Insurance Regulation on the last day of each
quarter, for the previous calendar quarter, listing any gift received, which he
or she believes to be in excess of $100, from a business entity or individual
subject to FSLSO oversight.
H. Disclosure or Use of Certain Information
No Association employee may disclose or use information not available to
members of the general public and gained by reason of his or her official position
for his or her personal gain or benefit or for the personal gain or benefit of any
other person or business entity.

Section 10. IMMUNITY.
There shall be no liability on the part of, and no cause of action of any nature shall
arise against, any member or its agents or employees, agents or employees of the
Association, members of the Board of Governors of the Association, or the Department or
its representatives, for any action taken by them in the performance of their duties or
responsibilities under this subsection. Such immunity does not apply to actions for breach
of any contract or agreement pertaining to insurance; or any willful tort.

Section 11. INDEMNIFICATION.
A. Extent of Indemnification. The Association shall indemnify (i) its Board
Members; (ii) Board committee members; (iii) employees of the Association; and (iv)
employees of the Department. The Association shall indemnify such persons whether they
are: (i) former or current Board members, or employees; (ii) whether a natural or legal
person; and (iii) individually or as a group; and (iv) where applicable, the estate,
executor, administrator, heirs, legatees, devisees, trustees, assigns, or successors in interest
of any such person; and (v) where applicable, any person, not previously described, who is
or may be vicariously liable for the actions of any aforementioned person. These persons
shall be referred to in this Article as "Indemnified Persons." Indemnification shall be made
where claims or causes of action are based upon allegations as to the conduct of any person
contemplated by this Plan in the performance of their duties, or in the exercise of their
discretion in the performance of duties owed to the Association, and all persons vicariously
liable for the actions of any such persons.
B. Right of Indemnification. Such indemnification shall not depend upon
whether the Indemnified Person is a member of the Association, or is a member of the Board,
or a committee or subcommittee thereof, Board member, Association employee,
Department employee or a person vicariously liable for the actions of any such persons, or

the estate, executor, administrator, heir, legatee, devisee, trustee, assign, or successor in
interest of such person at the time any claim, action, suit or proceeding is begun,
prosecuted or threatened, nor whether the liability to be indemnified was incurred, or
the act or omission occurred, prior to the adoption of this Plan; provided however, that the
Association's duty to indemnify any person shall arise only where claims or causes of
action are based upon allegations as to the conduct of such persons in the performance of
their duties, or in the exercise of their discretion in the performance of duties, or upon
vicarious liability therefore, owed to the Association. This Section shall not be construed
to indemnify any person liable for any payment, debt or obligation to the Association. The
Association shall not indemnify or hold harmless any person who is the subject of any legal
action seeking to impose criminal or administrative sanctions unless and until such
individual(s) is fully exonerated.
C. Effect on Other Rights. The right of indemnification hereunder shall not be
exclusive of other rights the Indemnified Party may have as a matter of law or otherwise.
D. Determination of Questions. Inquiring Indemnification, in each instance in
which a question of indemnification hereunder arises, including, without limitation, those
instances in which two or more Indemnified Persons are seeking indemnification
hereunder as a result of the same occurrence, determination in the first instance of the right to
indemnification hereunder and of the time, manner and amount of payment thereof, shall
be made by the Board. Nothing in this paragraph is intended to make or an adverse
determination finally binding upon an Indemnified Person, or to preclude any Indemnified
Person from appealing an adverse determination or from instituting legal proceedings to
enforce a right of indemnification under this Section.
E. Apportioning Expenses of Indemnification. The indemnification provided for
in this article shall be deemed to be an expense of the Association.
F. Association's Duty to Defend Indemnified Persons. The Association shall
defend any Indemnified Person from all claims and actions, whether in contract or tort, law
or equity where such claims or actions are based upon allegations as to the conduct of such
persons in the performance of their duties or in the exercise of their discretion in the
performance of duties, or upon vicarious liability therefore owed to the Association. The
Association shall advance reasonable litigation costs and attorneys' fees to any Indemnified
Person upon proper demand and approval by the Board. The Association will not
indemnify any person subject to a claim, charge or cause of action for a crime; unless and
until said individual(s) is fully exonerated. Furthermore, the Association will not indemnify
any person subject to a claim for fines payable to any state or federal agency, or any
governmental or regulatory authority.
G. Limitations on the Association's Duty to Defend Indemnified Persons. The
Association shall advance reasonable litigation costs and attorneys fees to any Indemnified
Person upon proper demand and approval by the Board. The Association shall have no duty
to oversee the conduct of any litigation or otherwise ensure the competence of any counsel
retained by any Indemnified Person. However, if the Board in its sole discretion,
determines that any interest of the Association is implicated in any litigation brought by or
against any Indemnified Person, the Indemnified Person shall have a duty to cooperate with
counsel for the Association, in order to advance the interests of the Association and lower
the costs of litigation.

H. Limited Hold Harmless Provision. The Association shall hold harmless an
Indemnified Person who makes a request for payment, otherwise than for principal, interest,
reimbursement of awards of money damages made against them, including interest
accrued prior to judgment, or amounts paid or agreed upon settlement. This right to request
payment of such amounts is not subject to alienation or assignment, and no Indemnified
Person shall have the right to create a contingent liability on the part of the Association for
such payments by attempting any such assignment or alienation to any other person,
including any attorney representing such Indemnified Person. Where, in its sole discretion,
the Board determines that such requests or payments are proper and promote the purposes
of this Section, the Board may authorize them herewith and considered to be material in
evaluating the economic, efficient, fair and nondiscriminatory operation of the Service
Office. Notwithstanding the foregoing, the Association will not hold harmless any
person subject to a criminal charge unless and until said individual is fully exonerated.
Furthermore, the Association will not hold harmless any person subject to a claim for fines
payable to any state or federal agency, or any governmental or regulatory authority.

Section 12. CONFIDENTIALITY.
The Service Office shall comply with Chapter 119, Florida Statutes, and subsequent
amendments thereto, to the extent required by law. Information furnished to the
Department under Section 626.932, Florida Statutes, or contained in records, is subject to
examination by the Department under Section 626.930, Florida Statutes, is confidential
and exempt from Section 119.07(1), Florida Statutes, and Section 24(a), Article 1 of the
Florida Constitution if disclosure would reveal information specific to a particular policy
or policyholder. The Florida Surplus Lines Service Office may provide such
information to the Department in the furtherance of its duties and responsibilities. The
exemption does not apply to any proceeding instituted by the Department or Office
against an agent or insurer.

Information furnished to the Service Office under the Surplus Lines Law is
confidential and exempt from Section 119.07(1), Florida Statutes, and Section 24(a), Art.
1 of the Florida Constitution if disclosure would reveal information specific to a particular
policy or policyholder. The Florida Surplus Lines Service Office may provide such
information to the Department in the furtherance of its duties and responsibilities. The
exemption does not apply to any proceeding instituted by the Department or Office
against an agent or insurer.

Section 13. NOTICE OF RIGHT TO INITIAL APPEAL.

You have the right to request an appeal of any action or decision against you by
the Service Office, or any committee thereof. Appeals must be made in writing, and must
be received no later than twenty-one (21) days from the date of receipt of notification of
such decision. Any written request for relief or redress received within the specified time
period shall be deemed an appeal. Requests received on the twenty-second (22nd) day will
not preserve your right to appeal. Appeals should state the decision being appealed, the
reason relief or redress is being requested, and must be addressed to: Executive Director,
Florida Surplus Lines Service Office, 1441 Maclay Commerce Drive, Suite 200,
Tallahassee, Florida 32312. No request for appeal shall be honored unless made in

writing and received within the specified time period. YOUR FAILURE TO REQUEST
AN APPEAL WITHIN TWENTY-ONE (21) DAYS OF RECEIPT OF NOTIFICATION
OF AN ADVERSE DECISION AGAINST YOU SHALL CONSTITUTE A WAIVER
OF YOUR RIGHT TO APPEAL.

Section 14. RESIDENT AGENT FOR SERVICE OF PROCESS

The Executive Director of the Association shall be designated as the Resident
Agent for service of process upon the Association. In any suit arising under this Plan of
Operation, or any agreement authorized by Statute or this Plan, the Circuit Court in and for
Leon County, Florida shall be deemed the Court of Competent Jurisdiction for such action
unless otherwise agreed to in writing by the Association.

Section 15. DISSOLUTION AND DEACTIVATION.

Upon a determination by the Board of Governors that the conditions giving rise to
the establishment and activation of the Association no longer exist, and upon the consent
and approval thereto by Order of the Office, the Association may be dissolved. Prior to
dissolution, the assets of the Association shall be applied first to pay all debts, liabilities
and obligations of the Association (including the establishment of reasonable reserves for
any contingent liabilities or obligations), and all remaining assets of the Association shall
be transferred to the Office or to another organization established for the same or similar
purpose, as the Office may direct.

Section 16. AMENDMENTS.

This Plan may be amended at any annual, regular or special meeting of the Board
by the affirmative vote of not less than five (5) Board members. Amendments shall be
effective upon approval by order of the Office, unless another effective date is specified in
Section 5 above.

Section 17. CONSTRUCTION.

This Plan of Operation shall be construed to conform and when necessary amended
to conform to the provisions of Sections 626.921, 626.931, 626.932, 626.9325, and
626.938, Florida Statutes.

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COPIES FURNISHED TO:

MARK SHEALY
EXECUTIVE DIRECTOR
FLORIDA SURPLUS LINES SERVICE OFFICE, INC.
1441 Maclay Commerce Drive,
Suite 200,
Tallahassee, FL 32312
Email: mshealy@flso.com

KEVIN JACOBS
CHIEF OF STAFF
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399

JANE NELSON
DEPUTY COMMISSIONER
PROPERTY & CASUALTY FINANCIAL OVERSIGHT
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399

BRADLEY TRIM
DIRECTOR
PROPERTY & CASUALTY FINANCIAL OVERSIGHT
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399

ROBERT PRESTON WILSON, ESQ.
ASSISTANT GENERAL COUNSEL
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, Florida 32399
Telephone: (850) 413-4174
Email: preston.wilson@floir.com