surplus lines taxes and fees by state 2021

Colorado Surplus Lines Tax. Our surplus lines tax filing software helps companies monitor surplus lines filings company-wide, providing helpful surplus lines automation tools to track payments, fees, and surplus lines filing deadlines. To obtain a surplus lines producer license go to www.nipr.com . The new 6% 10/30/2019 - The 2019 Additions to the Rates of Tax, which applies to insurers . On January 27, 2014, the Department issued a Bulletin to clarify how surplus lines brokers should calculate gross premiums when a policyholder pays the broker a fee under a policyholder- broker agreement (e.g., a policyholder-broker service agreement) instead of the broker receiving a commission from the insurance company. The W-9 form must be completed annually by either an agency (which may be used for more than one . Section 168. Consequently, for all surplus lines medical malpractice policies written or renewed after January 1, 2020, the broker must charge a 6% assessment to the insured. . Please call the Comptroller's office at (512)463-4276 if you have additional questions, or email them at insurance.tax@cpa.texas.gov . Renew via nipr.com or through an NIPR authorized business partner . Click Save Trace to save the trace as a text file. Surplus Lines Tax Law. The Surplus Lines Stamping Office of Texas (SLTX) is a non-profit association that receives funding for their operations from a surplus lines stamping fee. Review the Social Security Disclosure (Attachment 1) for your information. Invoices SLTX generates a monthly invoice/statement listing stamping fees due from brokers based on surplus lines policies processed. Flip through the 2020 Annual Report to get a full account of what took place last year at FSLSO and within the Florida surplus lines marketplace. Q4 - 1/1/2021 - 12/31/2021; Q3 - 7/1/2021 - 9/30/2021; Q2 - 4/1/2021 - 6/30/2021; 2020. Brokers are required to file the affidavit after the end of the reporting period but can begin reporting on the Begin Filing By date. You will be sent back to the home page, Indiana's surplus lines premium tax rate is 2.5% of gross premiums. 11:19-3.1 et. .0010 Stamping Fee. These insurers do not "do business" in Utah. September 30, 2016 was the last day for brokers to report new multi-state policies to the Florida Surplus Lines Service Office (FSLSO). The U.S. surplus lines market experienced direct premium growth of 17.5% in 2020, representing the largest year-over-year premium increase since 2003, according to the 2021 AM Best segment report, "Expanding Opportunities Boost Surplus Lines Growth and Spur Improved Operating Profits." DFS Portal File a premium tax statement for only one broker account After signing in select "Ask for Apps", Select on "Excess Line - Premium Tax Submission", Enter the Site ID in the field (8 capitalized letters followed by the license number) and hit Submit. The premium tax rate for captive insurance companies is 0.5 percent, with a minimum tax due of $7,500 and a maximum tax due of $200,000. Annual Statements are required even for zero business. Surplus Line Association of Washington. All refunds issued by the Office of the Commissioner of Securities and Insurance, Montana State Auditor must have a completed form W-9 with a year-end surplus lines tax statement that supports the refund. This rate applies to the return periods ending June 30, 2022, and December 31, 2022. To view the tax trace: Right-click the grey area in the Surplus Lines Tax Calculator dialog box. Surplus lines renewals are available to renew 60 days prior the license expiration date. The Premium Tax and Fees Section is responsible for the tax regulation of all insurance companies, whether admitted or non-admitted, that are authorized, approved, or registered to transact business in the state of Delaware. You can review taxes by state on the Tax Table tab. Tax Filing and Reporting Procedures. By choosing "Policy" as the "Filing Type" in the EFS . - Pay taxes and fees electronically via ACH in SLIP - Tax Rate: 5% of gross premium - Transaction Fee: 0.175% of gross premium The schedule for the SURPLUS LINES TAX INVOICING and the CLEARINGHOUSE TRANSACTION FEE Ensure accuracy and compliance with enhanced quality control features. Surplus Line Producer Monthly Report of Unauthorized Business and Semi-Annual Premium Tax Filing Instructions Pursuant to D.C. Official Code § 31-2502.40, all licensed surplus line producers must file a MONTHLY REPORT OF UNAUTHORIZED BUSINESS. We're halfway there. Surplus lines tax: 3.5%, payable by broker and may be passed on to the insured, plus stamping fee of 0.075%, and up to 1% fire marshal tax on property premium, depending on specific coverage (see schedule on Surplus Line Association website). The Surplus Lines Tax Filing Handbook is a collection of all tax filing information for all 50 states in one place! Surplus Lines Tax Laws by State 2 Appendix B - Direct Procurement Tax Laws by State 3 Appendix C - Industrial Insurance - . Locke Lord LLP For the latest information about our Firm visit lockelord.com InsureReinsure.com Refund of Surplus Lines Taxes and Fees. See INS-5. Surplus Lines Filing Procedures; SLAS Clearinghouse - SLIP; . SURPLUS LINES TAX LAWS BY STATE State Statutory Citation to Insurance Code Tax Rate Applied and filing timeframes Alabama §27‐10‐31 6% annually Alaska §21.09.210 §21.34.180 §21.34.190 3.7% (2.7% surplus lines tax plus 1% filing fee) (.75% (wet marine) - Quarterly Arizona Multistate policies are charged 4.94% tax on the entire premium, but will still require a premium allocation of Florida and Non-Florida. As outlined in Section XV of this Bulletin, separate quarterly tax returns shall be submitted to the applicable local government by the surplus lines broker using Form -141. This commercial tax is charged for the privilege of doing business in the state. Naturally, the rate and calculation of these fees also vary from state to state. Questions should be directed to the Surplus Lines Audit Section at (617) 521-7348 or by email to: surpluslinesaudit@mass.gov. Companies . The changes are shown here. All insurers - For all insurers, except ocean marine insurers and surplus line brokers, the annual return and payment are due April 1 of the following calendar year. If you have any questions, contact our Surplus Lines Insurance Tax examiner, (802) 828-2551. You must complete the affidavit by the End Filing By date. Please note: Surplus lines licenses are not eligible for reinstatement. Locke Lord is pleased to present this 21st edition of the Surplus Lines Manual for 2021. . The assessment credit is prorated at 20% per year for five years, unless the credit balance falls under $1,000. Answer: The premium tax is a tax on surplus lines coverage written by a broker with unauthorized eligible insurers, accessed at the same rate of tax as imposed by law on the premiums of like coverage written by authorized insurers. Completing your premium tax form The tax rate is 2%. language mirrors the language contained in the Notice of Excess Line Placement. Michigan's tax rate is a combined tax and regulatory fee of 2.5% on the premium amount for the insurance. Brokers. The new 6% assessment The current premium tax rate is 3.5 (.035) percent. Identifies dues dates for state surplus lines tax filings and reporting requirements, state tax rates and additional fees, links to instructions and forms, information about zero premium reporting requirements and information about the permissibility of courtesy filings. A Texas-licensed surplus lines agent who places a policy with a surplus lines insurer must report and pay this tax when Texas is the home state of the insured. The agent will receive aninvoice for the surplus lines premiums taxes due and an invoice for theSLAS Clearinghouse transactions fee. Surplus Lines Producer Responsibilities. The stamping fee is charged on each Texas surplus lines insurance policy and collected by the surplus lines agents. For example, the Calendar Year 2019 return is due on or before April 1, 2020. A properly formatted copy of the State Stamp language must also appear on the DEC page for paper filings. There is no stamping fee. All Surplus Lines Producers will need to contact the OPTins Marketing Team optinsmktg@naic.org or 816-783-8787 with any questions and to register. The surplus lines tax rate for 2021 is 3% calculated on gross premiums and any fees charged by the insurer or the broker as part of the insurance transaction. The Surplus Line Association of Arizona 14747 N. Northsight Blvd., Suite 111-449 Scottsdale, AZ 85260 Tel:1-602-279-6344 Email: [email protected] *** Please email trouble reports to [email protected] *** *** Internet Explorer Users: if you are having problems please turn on compatibility mode *** News: BULLETINS. AR_SL-4 This form is designed to be completed in Excel, uploaded, and submitted in OPTins even if it is a zero "0" filing. Current Company Examination Reports 2005+ Regulatory . (due by March 1 st each year.) Select a State Created with Raphaël 2.1.2 AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY Please refer to the instructions for RRGs at https://iid.iowa.gov/premtax. Taxes and fees apply to all Company and Broker/Producer fees added to a policy. Only licensed surplus line producers are authorized to transact surplus lines business in the District of Columbia. in another state(s) 100% of the surplus lines tax for that location(s) shall be paid to the state in which the location is . Helpful Hints and Tips: The items allowable under "premium" are found in 225.001(5) of the Texas Insurance Code. As long as you held a license for one day during the year, and even if you wrote no business, you are required to file a surplus lines tax return. . 2021: ISBN: 978-1-954096-20-2: Page Count: 940: Author: Christine G. Barlow, CPCU: Edition: Annual: 1. InsCipher Connect® allows your team to: Save time researching compliance requirements; up-to-date info is in the portal! The third stated method is applying an "industry average commission rate." The industry average commission rate for the 2022 tax year is 14.52%. However, it's important to note that when placing a surplus lines policy for your insured, ALL taxes and fees must be shown on the policy's binder and policy documents. Attention Surplus Lines Brokers: Recent changes to M.G.L. The NCSLSO by statute, will process all surplus lines insurance filings and . 1/31/2020 - Each surplus lines broker must obtain their OPTins-compatible tax report from The Surplus Line Association of Arizona ( www.sla-az.org) and then must file the Excel version of the report with payment using the NAIC OPTins system (www.optins.org). Notice to Insureds and Self-Insurers Self-Procured Surplus Lines Coverage Tax Report and Payment. Surplus lines insurers can use this report to determine how much commercial activity they did in the state. Instructions for filing surplus lines tax returns can be found on the DOI's website. Insurance premium tax filings are made through the Mississippi Department of Revenue. Contact Us. c. 175, section 168 relative to Surplus Lines Taxes have been enacted to bring Massachusetts into conformance with the NonAdmitted & Reinsurance Reform Act. The changes are shown here. .0025 Stamping Fee. Taxes are payable to the State of Nevada by e-payment on SLIP. FSLSO's 2020 Annual Report outlines the previous year's accomplishments as well as industry data and statistics. Policies with inception dates of July 1, 2006 to June 30, 2011: .02 State Tax. To obtain insurance premium tax forms, please visit the Insurance Premium Tax portion of their web site. Certification of Effort to Place Risk with Authorized Insurer (SLPS-6-CERT) Required NJ Policy Stamp/Statement (Exhibit A-2) . Surplus Lines Taxes & Fees. (1) Except as provided in 33-2-323, when this state is the home state of the insured, the surplus lines insurance producer shall collect from the insured and pay to the commissioner a tax on premiums collected for surplus lines insurance transacted in this state.The amount of premiums collected and the tax rate must be computed in the same manner as . This will ensure that all taxes and fees are calculated properly, and that certain return premium endorsements are not rejected. All surplus lines brokers must report the Non-Admitted Surplus Lines Insurance Premium Tax. As of the end of July, the year-to-date total had risen to $5.42 billion, representing a 16.1 percent increase in premiums over the same period in 2020. If applicable, the schedule for retaliatory tax should be filed with the annual return. Instructions Surplus Lines annual filing information. (225) 342-1012 (225) 342-9708 (Fax) taxdivision@ldi.la.gov Surplus Lines (Non-Admitted) Premium Tax You can file tax forms online through the Industry Access Portal. c. 175, section 168 relative to Surplus Lines Taxes have been enacted to bring Massachusetts into conformance with the NonAdmitted & Reinsurance Reform Act. Pay renewal fee of $100. Checks should be made payable to VT Dept. Surplus lines premium tax is payable semi-annually on or before February 1st and August 1st. Licensing & Surplus Lines Laws reviews the latest licensing and surplus lines laws for the fifty states, . We were the first to offer third-party surplus lines tax filings services nationwide, and we continue to set the industry standard. The premium tax and maintenance tax reports are due each March 1 after the end of the calendar year for which the tax is due (for example, March 1, 2016, for tax due in 2015). of Financial Regulation. Click View Tax Calculation. Click here to access filing instructions. Updates related to the annual filing of Idaho SL Taxes, whitelist updates, and other . Schedule E - Assessment Credits. See the myVTax resource center for information about our online filing system. Note: Examples of taxes to report here may include, but are not limited to, franchise tax, MTA tax, or a minimum tax.. At least one jurisdiction (New York) also requires the filing of surplus lines producer agreements with insurance carriers that grant the surplus lines broker binding authority as well, and the . It is the licensed surplus lines broker that is responsible for: (1) selecting an eligible surplus lines insurer; (2) reporting the surplus lines transaction to insurance regulators; (3) remitting the premium tax due on the transaction to state tax authorities; and (4) assuring compliance with all the requirements of the surplus lines codes. 11:1-33) Surplus Lines Fee Limitations. Risk Retention Groups no longer file through OPTins. 2022 Licensing and Surplus Lines Laws $163.00 In stock SKU 3800022 Book Option eBook + Online $163 $289 $176 Qty Add to Cart View and Edit Cart This resource reviews the latest licensing and surplus lines laws for the 50 states and U.S territories to help professionals successfully operate within the legal boundaries of each state. This filing is due to the Insurance Commissioner on or before March 1st of each year. The Surplus Lines Tax Filing Handbook is a collection of all tax filing information for all 50 states in one place! The Iowa Insurance Division has implemented OPTins (Online Premium Tax for Insurance) for agents filing and paying Iowa Surplus Lines, and Purchasing Groups Annual Premium Taxes. Data Submission Requirements (N.J.A.C. The Surplus Lines Stamping Office of Texas (SLTX) stated that the Texas surplus lines premium for July 2021 was $836.1 million. The 4.85% surplus lines tax is regulated by the Texas Comptroller of Public Accounts. In addition, the Form 1265 is not required in quarters where no business is transacted. If your license becomes inactive, you must re-apply and pay the licensing fee via nipr.com . Surplus Lines Annual Statements as well as any premium tax due is to be received by the Colorado Division of Insurance on or before March 1st for all Colorado home stated surplus line insurance transacted during the preceding calendar year. For further information about surplus lines insurance and the duties of surplus lines insurance broker duties please refer to Chapter 131 . Policies with inception dates of July 1, 2011 and later: .02 State Tax. Surplus Lines Compliance. We are so much more than a service office to the Florida surplus lines community. 2) Effective October 01, 2019, the Hawaii tax rate of 4.68% on surplus lines is to be the single rate used on all surplus lines insurance for which Hawaii is the home state, pursuant to Act 216 of 2019. The only exception are policies that have qualified for an NCDOI approved tax exemption or a statutory line coverage exemption. Correspondence with fees: PO Box 4001 Jefferson City, MO 65102-4001 Main Office Phone Number: (573) 751-4126. . Special Instructions Related to Surplus Lines Business Pursuant to KRS 304.10180(3), each surplus lines broker is required to pay the LGPT in - accordance with KRS 91A.080. Indiana's surplus lines premium tax rate is 2.5% of gross premiums. Calculations are completed automatically. Procurement Procedures (N.J.A.C. Additional fees charged to the insured are not calculated into the premium amount and therefore are not taxed. Assessments are pre-populated by the OIC and cannot be edited. Transaction Control Numbering. • TAXES An excess line broker must pay a tax of 3.6% on the gross premium minus premiums returned to insureds when New York is the Home State of the insured (§2118(d)(1)). Another function of the Premium Tax and Fees Section is the regulation of Surplus Lines brokers, including . The Division issued Bulletin 16-05 a guidance to surplus line brokers regarding the filing of multi-state surplus lines policies. seq.) All surplus lines insurance policies in which North Carolina is the home state, are subject to a premium tax. All surplus line policies where Louisiana is the home state have a tax rate of 4.85 percent. The Surplus Line Association of Washington (SLA) (www.surpluslines.org) enters premiums on your behalf as a courtesy; your tax form will not be available to file until they have entered your premiums. ; The tax estimator can be used for individual policies or groups of policies that fall into the same date range. Statement Filings and Premium Tax Forms. Filing online through the Vermont Department of Taxes online system, myVTax, has been mandated by the Commissioner of Taxes. Since 2005, ILSA has helped thousands of surplus lines brokers . Surplus Lines Companies Applications & Information. OPTins, a product of the National Association of Insurance Commissioners all surplus lines medical malpractice policies written or renewed after January 1, 2020, the broker must charge a 6% assessment to the insured. The Surplus Line Association of Washington is a not-for-profit corporation created to promote a stable Non-Admitted insurance market in the State of Washington to offer viable options to the insurance buying public, to encourage and facilitate compliance by its members with the laws of the State of Washington and the United States of America relative to . However, the agency must list all agency affiliated surplus lines individuals on the tax form. With InsCipher Connect™ you can electronically file E&S policies directly to the states and state stamping offices, reducing error, time . Attention Surplus Lines Brokers: Recent changes to M.G.L. Any surplus lines broker that fails to file their annual . 2021. Any insurance company that fails to file their annual tax report, Form 800, Virginia Insurance Premiums License Tax Report (due March 1 following the close of the previous calendar year) will be subject to a late filing fine of $50 per day for each day's failure to submit the report. All taxes and stamping fees must be rounded to the nearest whole dollar (see "Other Comments" section #11). The excess and surplus lines market (hereafter referred to as surplus lines) is a supplemental market of insurance companies that do not have a certificate of authority to write insurance in Utah. For questions related to the surplus lines premium tax, please contact the Comptroller's office at (800) 252-1387. Every fire insurance company or association that does business or collects premiums or assessments in Maine must pay a fire premiums tax equal to 1.4% of the gross direct premiums for fire risks written in the State, less the amount of all direct return premiums and all dividends paid to policyholders on direct fire premiums. 3. Broker Tax & Stamping Fee Estimator Important Reminder: The California surplus lines stamping fee will increase to 0.25% on January 1, 2020. If you have any questions regarding the filing of insurance premium taxes call 601-923-7700 or email derrick.barnes@dor.ms.gov. Currently, 10 states require a copy of the DEC page to finalize surplus lines filings. Any licensed Surplus Lines Broker or IPC filer who fails to file a report in the form and within the time required or to pay the premium tax due on or before the due date; may be fined up to $25.00 per day for each day the report is delinquent and required to pay 9% interest on any delinquent tax due. SL-4 Affidavit. Pursuant to HB 7097, the surplus lines premium tax rate was reduced from 5% to 4.94% on all policies effective July 1, 2020 and after. This is done in the form of a "stamp." Stay with me. . To provide means for the examination of all Idaho surplus line coverage written by licensed surplus line brokers and to facilitate and encourage compliance with such laws and rules of the Director of the Department of Insurance, State of Idaho. The amount of tax due is 3% of the California taxable surplus line premiums transacted by the broker from January 1st to December 31st in the previous year. 33-2-311.. Tax on surplus lines insurance. fees relating to licensing of an individual or entity as a surplus lines broker in the applicable state. Select a State Created with Raphaël 2.1.2 AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY To learn more about the new stamping fee and how it applies to your filings, please view our guide to the 2020 Stamping Fee Increase Procedures. All Maryland Surplus Lines Semi Annual Tax Returns for the year should be submitted by email to: surpluslinefiling.mia@maryland.gov by March 15 and September 15. Foreign Surplus Lines Continuing Eligibility Review and Filing Fees; Eligible Alien Surplus Lines . Section 168. SURPLUS LINES STAMPS Please note that this surplus line broker 6% assessment on medical malpractice policies is in addition to the existing 6% premium tax on premiums and policy fees. State of Missouri Navigation. Note that in the Surplus Line Tax, Fire Marshal Tax and Stamping Fee sections of the Procedures Manual, special treatment with regard to these items is required. (Updated December 2021) Track and monitor deadlines for all 50 states (plus Guam & Puerto Rico) E-file surplus lines policies directly to states right from our system. Rates 4.85 percent of taxable premiums Due Date Yearly: March 1 for the previous calendar year (for example, March 1, 2015, for premiums received in 2014). Please note that this surplus line broker 6% assessment on medical malpractice policies is in addition to the existing 6% premium tax on premiums and policy fees. From initial policy reporting to excess and surplus lines insurance tax filings, ILSA understands surplus lines compliance. [Top of Page] [xlsx) (indicated where COMPANY TYPE is "SURPLUS LINES") Company Examinations. IV. To download a PDF of the 2021 Excess & Surplus Lines Law Manual Contact Us If you are interested in receiving automatic annual updates to the manual and/or subscribing to receive periodic articles related to the insurance industry please CLICK HERE. Contact us 573-526-1589 surpluslines@insurance.mo.gov. 2. A license application fee of $30.00 and a license fee of $400.00. Tax Estimator. Surplus lines premium tax is payable semi-annually on or before February 1st and August 1st. Policies with inception dates of June 30, 2006 and before: .02 State Tax. Every surplus line broker and special lines surplus line broker must make an annual state tax filing. If the surplus lines tax payment is not received by the appropriate deadline, a 10% penalty will be assessed on any amounts received after the first of the month. Insurer Premiums and Fees Report: 2021. The total amount of taxes and fees are displayed in the Total box.
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