Requirement for Electronic Filing of Surplus Lines Filings and Payments

Indiana Department of Insurance May 16, 2017 Bulletin 239 REQUIREMENT FOR ELECTRONIC FILING OF SURPLUS LINES FILINGS AND PAYMENTS This bulletin is directed to all surplus lines producers submitting semi-annual tax filings and/or payments and for monthly filings. The use of OPTins will be mandatory beginning with the next semi-annual filing, required to be made on or before August 1, 2017, and for all monthly and semi-annual filings and payments going forward. In 2014 the Department announced that electronic filing through OPTins would become mandatory; however, later that year the requirement was delayed. Since that time, many surplus lines producers have voluntarily switched to use ofelectronic filing, and many states now require the use of OPTins for surplus lines reporting. At this point, the Department has determined the benefits of using of OPTins for surplus lines - reduced costs compared to paper filings and the elimination ofmail errors and associated penalties - outweigh any lingering issues or concerns. Although OPTins continues to be the Department's preferred method ofreceiving premium tax and insurance company annual renewal fees, the Department is not mandating use of OPTins for company filings at this time. Insurance companies should continue to monitor Department bulletins and be prepared to use OPTins at a future date. Instructions for submitting tax and fee filings are available at: http://www.optins.org/getting started.htm. Filers must contact the OPTins Marketing Team at optinsmktg@naic.org or call (816) 783-8787 for setup ofan OPTins account ifthey do not already have one. Once registered and set up, which typically takes seven to ten business days, the Filer will be able to log in, upload filing forms, and submit payment online via ACH debit or credit. If you already use OPTins you do not have to contact OPTins Marketing; just enter your Indiana license number with OPTins. If a Filer uses ACH debit, payment is released to the Department with the filing. If the Filer uses ACH credit, there is a delay before the Department receives the filing and payment, because the submission is not released until the NAIC receives the funds for the filing. Thus, to ensure compliance with statutory deadlines, a Filer should use ACH debit or submit the filing well in advance ofthe deadline. The current OPT ins per-transaction fee is 5% ofthe total tax due up to $10 for tax filings and/or payments, and $1 for zero filings. This fee is set by OPTins and not the Department. Any company may request from the Commissioner an exemption from this mandate by showing good cause. Requests must be received at least thirty days prior to a filing deadline. Surplus lines producers are reminded that monthly and semi-annual filings are required even ifno business has been placed during the reporting period. Questions regarding this bulletin should be directed to Amber Hurley, Surplus Lines Coordinator, at (317) 233-9998 or ahurley@idoi.IN.gov, or Annette Gunter, Supervisor of Financial Services Operations, at (317) 232-2428 or agunter id ·.IN.gov. Stephe Insurance Commissioner 2