Keeping track of various deadlines and compliance requirements for surplus lines can be challenging. However, late fees and penalties for filing incorrectly can quickly become a large sum. Here are some common reasons why insurance companies file their surplus lines taxes and reports late:
1: Misunderstanding of Deadlines
When it comes to calculating deadlines, some are based on the effective date, invoice date, date of binder, or another specific date. Filing teams may not be aware of these differences and can miscalculate deadlines.
2: Too Heavy of a Workload
Filing teams may be overwhelmed by the amount of work they need to complete. This can make it difficult to submit taxes and reports on time.
3: Errors in Original Filing
When filing surplus lines taxes and reports, if there are errors in the original surplus lines policy, correcting these mistakes could prevent insurance agencies from filing on time.
4: Forgetting About Zero Reports
Some states require to file zero reports when no surplus lines business was written. If a filing team is unaware of these reports or forgets about them, they could miss these important deadlines.
If you’ve missed important deadlines, InsCipher can help. We offer a variety of products and services to help keep you compliant and stay on top of your deadlines.
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