This office is currently closed to public visitors as a protective measure for the safety of customers and staff. The department will continue to provide services by email and telephone. Consumers with questions can call 860-297-3900. Insurance companies and licensees can call 860-297-3800 directly. Service of process on the Insurance Commissioner will be accepted Tuesdays & Thursdays, 9 a.m. to 3 p.m. Visit the Department coronavirus information

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Surplus Lines Broker FAQ's – Individual and Business Entities


SURPLUS LINES TAX FILINGS
  1. What are the procedures for filing Surplus Lines Affidavits under Section 38a-741(b)(1) of the Connecticut General Statutes?

    Under previous law, Surplus Lines Brokers were required to file notarized affidavits with the Commissioner within 45 days of the policy effective date. Now, Surplus Lines Brokers will file Surplus Lines statements (no notary) instead of affidavits. See Department Bulletin SL-4.

    Surplus Lines Statement SL-8 Form & Instructions (PDF)

    Quarterly Tax Return Filing: All licensees (individuals and business entities) are required to file a tax return which includes forms SL-9, SL 9A and SL-9B, according to the schedule below. All returns must be filed through OPTins. No return needs to be filed for $0 filers.

    Policy Period  
     Tax Payment Due Date
     January 1 through March 31  May 15th
     April 1 through June 30   August 15th 
     July 1 through September 30  November 15th
     October 1 through December 31  February 15th


  2. What are the tax filing requirements?

    The tax rate is four percent (4%) on the gross premium charged the insured. See Department bulletin SL-2.

  3. Is a tax return required if there is no activity for the reporting period?

    No, no filing is necessary for “$0” returns.

  4. I have a tax return that result in a credit. Do I still need to file?

    Yes.

  5. May I request a refund if I file a return with a credit?

    You must take the credit on your next quarterly filing. See SL-9, Line “E”. You may apply for a refund if, after 3 consecutive quarters, the credit amount stays the same, or the licensee has cancelled the surplus lines license. You may submit your request to: cid.surpluslines@ct.gov.

  6. How are endorsements reported?

    The endorsement should be reported and paid in the filing quarter of the invoice.

  7. Are any surplus lines premiums exempt from the 4% surplus lines tax? (C.G.S.38a-743)

    Yes. Premium tax shall not apply to any policy issued to the State of Connecticut or any agency thereof or to any policy issued to any town, or agency of such town or special taxing district appears in the policy as the named insured and is responsible for the payment of premiums shown on the policy.

  8. Does the Surplus Lines statement need to be completed for Exempt Commercial Purchasers (ECP)?

    Please review Department Bulletin SL-2 to determine eligibility.

  9. Does the Surplus Lines statement need to be completed each year for an insured if the policy is a renewal?

    Yes.

  10. Does a statement need to be submitted for each event policy if it is the same event or same organization?

    Yes. A separate statement needs to be submitted for each event.

  11. Does the Department accept electronic form(s) or stamped signatures on the SL-8 statements?

    Yes.

  12. Are penalties and interest assessed for late filing?(C.G.S. 38a-743)(C.G.S 38a-2)

    If the tax is not paid on its due date there is a penalty of ten percent (10%) of the premium tax due and interest of one percent of the premium tax per month or fraction of a month that the tax payment is late. Do not remit penalty and interest payments. The Department will invoice licensees for penalty and interest assessments.

  13. Are brokers and producers allowed to charge service fees and what are the limits? (Regulation Sec. 38a-707-1 to 38a-707-9)

    Service Fees to Be Charged By Insurance Producers and Surplus Lines Brokers

  14. Are broker fees, services fees and policy fees subject to the 4% surplus lines tax?

    No.

  15. Where is the White List (listing of surplus lines insurers) located?

    You will find surplus lines insurers among the "List of Licensed Companies, Approved Reinsurers and Surplus Lines Insurers (PDF)".  A "k" in the type column will indicate the company is a surplus lines insurer. This list is compiled and maintained by the Financial Regulation Division.

  16. What is the Exportable List? (C.G.S. 38a-741)

    It is a listing of lines of insurance or their components for which coverage is believed by the Commissioner to be generally unavailable from licensed insurers. Brokers are not required to submit affidavits for risks that are included on the Exportable List. This list is compiled and maintained by the Financial Regulation Division.

  17. Is there specific wording that is required to be stamped on the surplus lines policies? (C.G.S. 38a-745)

    Each insurance policy issued or renewed on or after January 1, 2015, pursuant to sections 38a-741 to 38a-744, inclusive, AND 38a-794 by a surplus lines insurer shall bear on its cover, in not less than twelve-point boldface type in capital letters. The following:

    NOTICE: THIS IS A SURPLUS LINES POLICY AND IS NOT PROTECTED BY THE CONNECTICUT INSURANCE GUARANTY ASSOCIATION OR SUBJECT TO REVIEW BY THE CONNECTICUT INSURANCE DEPARTMENT. IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THIS POLICY.

  18. What is the 115A form?

    The 115A form is a Revenue Services form and is used for submitting surplus lines taxes when the coverage is a direct procurement (meaning the insured procures in insurance directly from the surplus lines company without using a surplus lines broker.) In this case the taxes are paid to the Department of Revenue Services.

  19. Where would I find information about Independently Procured Policies?

    Contact Department of Revenue Services or by phone at 860-297-5962.

  20. I still have questions regarding the Surplus Lines filing, who do I need to contact?

    Please contact the OPTins helpdesk at (816) 783-8990 or optinshelp@naic.org.

SURPLUS LINES LICENSING
  1. What is the correct application for surplus lines licensing and where do I obtain it?

    Individual  or Business Entity may apply on the CID website or at National Producer License Registry (NIPR) Select “Apply for License.”

  2. What are the fees for surplus lines licenses?

    The initial and reinstatement fee is each $675.00. The renewal fee is $625.00.

  3. What is the renewal date for surplus lines licenses?

    Surplus lines licenses renew October 1st of even numbered years. You must renew electronically at National Producer License Registry (NIPR), select “RENEW” and pay by credit card. You will get an option to select surplus lines authority during the application process.
    You may renew your SL license up to 90 days prior to the expiration date.

  4. What is the expiration date of the Surplus Lines license?

    All surplus lines licenses expire September 30th of even numbered years. There is no pro-rating.
    Renewal fees are non-refundable, review your submission carefully.

  5. Are Surplus Lines licensees required to complete continuing education requirements?

    No, there are no continuing education requirements for Surplus Lines Licensees.

  6. What are the requirements for obtaining a NON-RESIDENT surplus lines broker license?

    Both non-resident individuals and non-resident business entities applying for a surplus lines license must hold an active surplus lines license in another state.

  7. What are the requirements for obtaining a RESIDENT surplus lines broker license?

    Both individuals and business entities applying for a surplus lines broker license must be currently licensed and in good standing as a Connecticut Property and Casualty Producer. There is an examination requirement for INDIVIDUALS. To schedule your exam, please contact our test vendor, Prometric, at 1-800-341-3257 or register online.

    For a business entity to obtain/maintain a license there needs to be at least one designated license responsible person (DLRP) who is actively Surplus Lines licensed in Connecticut.

  8. Is there a bond requirement for residents or non-residents?

    No, a bond is not required.

  9. Are surplus lines applicants required to take a pre-licensing course prior to taking exam?

    No, a pre-licensing course is not required.

  10. Where may I find study material?

  11. I need to obtain a business entity license, what do I need to do?

    You may apply for the business entity license by going to www.nipr.com, select “Apply for a License.”
    For a business entity to obtain/maintain a license there needs to be at least one designated license responsible person (DLRP) who is actively Surplus Lines licensed in Connecticut.
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