Surplus lines tax filing and reporting is a challenging and tedious process. After an E&S policy has been written, it must be filed in the state where the policy is written. Since there is no federal regulation for excess and surplus lines policies, each state creates its own specific rules for surplus lines filing and reporting.
Once a policy is filed, taxes and stamping fees must be paid to the appropriate state offices. Surplus lines payments can be due either monthly, quarterly, or annually, with reporting submission methods varying by the state as well. It can get more complicated in states such as Kentucky, where surplus lines tax rates are assessed based on individual municipalities where the risk is located.
But wait, there’s more!
Once you’ve filed the surplus lines policy and paid the appropriate surplus lines taxes, in most states you must also file a separate report summarizing all the policies you’ve submitted in a given period. This reporting period will vary by state and can either be monthly, quarterly, semi-annually, or annually.
InsCipher tracks all these E&S reporting requirements across all 50 states, so you don’t have to. Let us manage surplus line compliance, so you can grow your business.