NAIC Multi-State Surplus Premium Tax Working Group Meeting Report: February 26
Feb 26, 2009
On Thursday, February 26, 2009, the National Association of Insurance Commissioners (“NAIC”) Multi-State Surplus Premium Tax Working Group (“Working Group”) met to discuss the draft Surplus Lines Survey for State Regulators (“Survey”) and comments received from the American Insurance Association (“AIA”) on the Survey questions.
Copies of the draft Survey and AIA comments are attached for your review.
The Survey requests detailed information from regulators about their respective state’s regulatory basis (e.g. statute, regulation or departmental procedure) for collecting surplus lines taxes.
Comments received from the AIA on Survey questions include:
- Question 8-Your state requires filing of policy documents (check all that apply)
- Clarification was requested on whether each state requires policy document filing to be sent to the Department of Insurance, Stamping Office, or both.
- Question 10-Your state requires a specific number of declinations as part of the due diligence process (check all that apply)
- It was suggested that this question be divided into two: One question to reference declinations and the due diligence process; the other to reference the export list.
- It was suggested that this question be divided into two: One question to reference declinations and the due diligence process; the other to reference the export list.
- Question 18-The ultimate responsibility for payment of the Surplus Lines Tax falls upon (check all that apply)
- It was suggested that a separate question for information regarding independently-procured or industrial insurance be added.
- It was suggested that a separate question for information regarding independently-procured or industrial insurance be added.
- Question 21-If your state has an SLA or Stamping Office, the following applies (check all applicable)
- The addition of “producer” to answer option A was requested to clarify that producer registration/membership is required.
- The addition of “producer” to answer option A was requested to clarify that producer registration/membership is required.
- Question 22-Your state allows a licensed surplus lines agent/broker to perform courtesy/accommodation filings for a placing broker who does not hold surplus lines authority in your state
- The addition of a definition for “courtesy/accommodation filing” was requested.
- The addition of a definition for “courtesy/accommodation filing” was requested.
It was also requested that copies of each state’s surplus lines tax forms, tax form instructions and affidavit (if required) be collected as part of the Survey.
After discussion, the Working Group approved the recommendations for incorporation into the Survey.
The revised Survey will be sent to Working Group members for approval. It is anticipated that the finalized Survey will be sent to state regulators by March 16, 2009.
The meeting was then adjourned.
Should you have any questions or comments, please contact Colodny Fass.
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