Surplus Lines Insurance Act Amendments Include Changes to Filing Dates and the Tax Rate for Multistate Filings

NEBRASKA Good Life. Great Opportunity. DEPARTMENT OF INSURANCE # Cover Sheet December 19, 2016 CB-137 # BULLETIN # SUBJECT: Surplus Lines Insurance Act Amendments Include Changes to Filing Dates and the Tax Rate for Multistate Filings This guidance document is advisory in nature but is binding on an agency until amended by such agency. A guidance document does not include internal procedural documents that only affect the internal operations of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document. Contents of CB-137 follow on next page. Bruce R. Ramge, Director Department of Insurance 941 O Street, Suite 400 PO Box 82089 Lincoln, Nebraska 68501-2089 OFFICE 402-471-2201 FAX 402-471-4610 www.doi.nebraska.gov NEBRASKA Good Life. Great Opportunity. DEPARTMENT OF INSURANCE December 19, 2016 CB-137 # BULLETIN # SUBJECT: Surplus Lines Insurance Act Amendments Include Changes to Filing Dates and the Tax Rate for Multistate Filings LB 837, which amends the Surplus Lines Insurance Act, specifically Neb. Rev. Stat. § 44-5506 and 44-5515, was approved by the Governor on April 7, 2016. The following changes are effective January 1, 2017: • Quarterly Filing Dates have changed: o March 1 for fourth quarter o June 1 for first quarter o September 1 for second quarter o December 1 for third quarter • The tax rate for multistate filings have changed: s the Surplus Lines Insurance Act, specifically Neb. Rev. Stat. § 44-5506 and 44-5515, was approved by the Governor on April 7, 2016. The following changes are effective January 1, 2017: • Quarterly Filing Dates have changed: o March 1 for fourth quarter o June 1 for first quarter o September 1 for second quarter o December 1 for third quarter • The tax rate for multistate filings have changed: o The tax rate for risks both inside and outside of Nebraska will now be a flat 3% on behalf of an insured whose home state is Nebraska. This change eliminates the need for licensees to calculate premiums and tax based on location of risk. The tax only applies to premiums for insurance that covers properties, risk, or exposures located or to be performed in the United States. o The tax rate to be used will be the rate effective on the date premium was charged, which is either the date of coverage or the policy anniversary date. The Department has also made an unrelated change to the handling of refunds due. In an effort to increase efficiency and reduce handling costs, any net refund due to the filer that is less than $25 will be carried forward as a credit to the next quarter filing and no refund check will be issued unless specifically requested by the licensee. A surplus lines FAQ has been posted to the Department's website and can be accessed at https://doi.nebraska.gov/producers/surplus-lines-information. Questions regarding these changes can be directed to DOI.SurplusLines@nebraska.gov or 402-471-4646. Bruce R. Ramge Bruce R. Ramge Director Bruce R. Ramge, Director Department of Insurance 941 O Street, Suite 400 PO Box 82089 Lincoln, Nebraska 68501-2089 OFFICE 402-471-2201 FAX 402-471-4610 www.doi.nebraska.gov