(a) (1) The premiums charged for surplus lines insurance are subject to a gross premium tax, as follows:
(A) Two and one half percent (2.5%) on premiums other than fire premiums;
(B) Three and one quarter percent (3.25%) on fire premiums or the fire portion of any combination premium; and
(C) Four percent (4%) on workers' compensation premiums, plus a surcharge of four tenths of one percent (0.4%) as provided in § 56-4-206.
(2) Premium includes all premiums, membership fees, assessments, dues or any other consideration for insurance.
(3) The tax shall be in lieu of all other insurance taxes.
(4) The surplus lines agent shall collect from the insured the amount of the tax at the time of delivery of the cover note, certificate of insurance, policy or other initial confirmation of insurance, in addition to the full amount of the gross premium charged by the insurer for the insurance. No agent shall absorb the tax nor shall any agent, as an inducement for insurance or for any other reason, rebate all or any part of the tax or the agents commission.
(5) The surplus lines agent shall report, under oath, to the commissioner, on or before March 1 and September 1 of each year, the amount of gross premiums paid for the insurance placed through the agent in nonlicensed insurers, and shall pay to the commissioner the tax provided for by this chapter. The surplus lines agent shall report and pay the tax on or before March 1 of each year for all business reported by the agent to the commissioner between July 1 and December 31 of the previous year. The surplus lines agent shall report and pay the tax on or before September 1 of each year for all business reported by the agent to the commissioner between January 1 and June 30 of each year. This form prescribed by the commissioner shall show that the amount of insurance procured from the unauthorized insurer or insurers is only the amount in excess of the amount procurable from licensed insurers.
(6) If a surplus lines policy covers risks or exposures only partially in this state, the tax payable shall be computed on the portions of the premium that are properly allocable to the risks or exposures located in this state. In determining the amount of premiums taxable in this state, all premiums written, procured or received in this state and all premiums on policies negotiated in this state shall be deemed written on property or risks located or resident in this state, except the premiums that are properly allocated or apportioned and reported as taxable premiums of any other state or states. In the event of cancellation and rewriting of any surplus lines insurance contract, the additional premium for premium tax purposes shall be the premium in excess of the unearned premium of the cancelled insurance contract.
(b) All surplus lines premium taxes collected by a surplus lines agent are trust funds in the agent's hands and the property of this state. The funds shall be maintained by the surplus lines agent in a separate account and shall not be mingled with any other funds, either business or private. Any surplus lines agent who fails or refuses to pay over to the state the surplus lines premium tax at the time required in this section, or who fraudulently withholds or appropriates or otherwise uses the money or any portions of the money belonging to the state, commits larceny and shall be punished as provided by law for the crime of larceny, regardless of whether the surplus lines agent has or claims to have any interest in the money so received.
(c) If the property of any surplus lines agent is seized upon any mesne or final process in any court in this state, or when the business of any surplus lines agent is suspended by the action of creditors or put into the hands of any assignee, receiver or trustee, all surplus lines premium tax money and penalties due the state from the surplus lines agent shall be considered preferred claims, and the state shall be a preferred creditor and shall be paid in full.
(d) The attorney general and reporter, upon request of the commissioner, shall proceed in the courts of this or any other state or in any federal court or agency to recover the tax not paid within the time prescribed in this section.
(a) (1) The premiums charged for surplus lines insurance are subject to a gross premium tax, as follows:
(A) Two and one half percent (2.5%) on premiums other than fire premiums;
(B) Three and one quarter percent (3.25%) on fire premiums or the fire portion of any combination premium; and
(C) Four percent (4%) on workers' compensation premiums, plus a surcharge of four tenths of one percent (0.4%) as provided in § 56-4-206.
(2) Premium includes all premiums, membership fees, assessments, dues or any other consideration for insurance.
(3) The tax shall be in lieu of all other insurance taxes.
(4) The surplus lines agent shall collect from the insured the amount of the tax at the time of delivery of the cover note, certificate of insurance, policy or other initial confirmation of insurance, in addition to the full amount of the gross premium charged by the insurer for the insurance. No agent shall absorb the tax nor shall any agent, as an inducement for insurance or for any other reason, rebate all or any part of the tax or the agents commission.
(5) The surplus lines agent shall report, under oath, to the commissioner, on or before March 1 and September 1 of each year, the amount of gross premiums paid for the insurance placed through the agent in nonlicensed insurers, and shall pay to the commissioner the tax provided for by this chapter. The surplus lines agent shall report and pay the tax on or before March 1 of each year for all business reported by the agent to the commissioner between July 1 and December 31 of the previous year. The surplus lines agent shall report and pay the tax on or before September 1 of each year for all business reported by the agent to the commissioner between January 1 and June 30 of each year. This form prescribed by the commissioner shall show that the amount of insurance procured from the unauthorized insurer or insurers is only the amount in excess of the amount procurable from licensed insurers.
(6) If a surplus lines policy covers risks or exposures only partially in this state, the tax payable shall be computed on the portions of the premium that are properly allocable to the risks or exposures located in this state. In determining the amount of premiums taxable in this state, all premiums written, procured or received in this state and all premiums on policies negotiated in this state shall be deemed written on property or risks located or resident in this state, except the premiums that are properly allocated or apportioned and reported as taxable premiums of any other state or states. In the event of cancellation and rewriting of any surplus lines insurance contract, the additional premium for premium tax purposes shall be the premium in excess of the unearned premium of the cancelled insurance contract.
(b) All surplus lines premium taxes collected by a surplus lines agent are trust funds in the agent's hands and the property of this state. The funds shall be maintained by the surplus lines agent in a separate account and shall not be mingled with any other funds, either business or private. Any surplus lines agent who fails or refuses to pay over to the state the surplus lines premium tax at the time required in this section, or who fraudulently withholds or appropriates or otherwise uses the money or any portions of the money belonging to the state, commits larceny and shall be punished as provided by law for the crime of larceny, regardless of whether the surplus lines agent has or claims to have any interest in the money so received.
(c) If the property of any surplus lines agent is seized upon any mesne or final process in any court in this state, or when the business of any surplus lines agent is suspended by the action of creditors or put into the hands of any assignee, receiver or trustee, all surplus lines premium tax money and penalties due the state from the surplus lines agent shall be considered preferred claims, and the state shall be a preferred creditor and shall be paid in full.
(d) The attorney general and reporter, upon request of the commissioner, shall proceed in the courts of this or any other state or in any federal court or agency to recover the tax not paid within the time prescribed in this section.
(a) (1) The premiums charged for surplus lines insurance are subject to a gross premium tax, as follows:
(A) Two and one half percent (2.5%) on premiums other than fire premiums;
(B) Three and one quarter percent (3.25%) on fire premiums or the fire portion of any combination premium; and
(C) Four percent (4%) on workers' compensation premiums, plus a surcharge of four tenths of one percent (0.4%) as provided in § 56-4-206.
(2) Premium includes all premiums, membership fees, assessments, dues or any other consideration for insurance.
(3) The tax shall be in lieu of all other insurance taxes.
(4) The surplus lines agent shall collect from the insured the amount of the tax at the time of delivery of the cover note, certificate of insurance, policy or other initial confirmation of insurance, in addition to the full amount of the gross premium charged by the insurer for the insurance. No agent shall absorb the tax nor shall any agent, as an inducement for insurance or for any other reason, rebate all or any part of the tax or the agents commission.
(5) The surplus lines agent shall report, under oath, to the commissioner, on or before March 1 and September 1 of each year, the amount of gross premiums paid for the insurance placed through the agent in nonlicensed insurers, and shall pay to the commissioner the tax provided for by this chapter. The surplus lines agent shall report and pay the tax on or before March 1 of each year for all business reported by the agent to the commissioner between July 1 and December 31 of the previous year. The surplus lines agent shall report and pay the tax on or before September 1 of each year for all business reported by the agent to the commissioner between January 1 and June 30 of each year. This form prescribed by the commissioner shall show that the amount of insurance procured from the unauthorized insurer or insurers is only the amount in excess of the amount procurable from licensed insurers.
(6) If a surplus lines policy covers risks or exposures only partially in this state, the tax payable shall be computed on the portions of the premium that are properly allocable to the risks or exposures located in this state. In determining the amount of premiums taxable in this state, all premiums written, procured or received in this state and all premiums on policies negotiated in this state shall be deemed written on property or risks located or resident in this state, except the premiums that are properly allocated or apportioned and reported as taxable premiums of any other state or states. In the event of cancellation and rewriting of any surplus lines insurance contract, the additional premium for premium tax purposes shall be the premium in excess of the unearned premium of the cancelled insurance contract.
(b) All surplus lines premium taxes collected by a surplus lines agent are trust funds in the agent's hands and the property of this state. The funds shall be maintained by the surplus lines agent in a separate account and shall not be mingled with any other funds, either business or private. Any surplus lines agent who fails or refuses to pay over to the state the surplus lines premium tax at the time required in this section, or who fraudulently withholds or appropriates or otherwise uses the money or any portions of the money belonging to the state, commits larceny and shall be punished as provided by law for the crime of larceny, regardless of whether the surplus lines agent has or claims to have any interest in the money so received.
(c) If the property of any surplus lines agent is seized upon any mesne or final process in any court in this state, or when the business of any surplus lines agent is suspended by the action of creditors or put into the hands of any assignee, receiver or trustee, all surplus lines premium tax money and penalties due the state from the surplus lines agent shall be considered preferred claims, and the state shall be a preferred creditor and shall be paid in full.
(d) The attorney general and reporter, upon request of the commissioner, shall proceed in the courts of this or any other state or in any federal court or agency to recover the tax not paid within the time prescribed in this section.
