Surplus Lines Tax Filings (Individual & Business Entities)
What are the due dates for filing Surplus Lines Tax Returns (the SL-9) under Section 38a-741(b)(1) of the Connecticut General Statutes?
|TAX PAYMENT DUE DATE
|January 1 through March 31
|April 1 through June 30
|July 1 through September 30
|October 1 through December 31
Do you still require SL-8s to be uploaded with quarterly filings?
Who needs to keep the required three declinations on file- the Retail Agent, or the Surplus Lines Broker?
I know that in most cases I need to obtain three declinations before placing a risk with a Surplus Lines Carrier. What specifically does “declination” entail?
I am a captive agent and only have access to a single market. Can I place Surplus Lines business with one declination?
Do I need to collect new declinations for a renewing Surplus Lines policy?
What are the tax filing requirements?
Is a tax return required if there is no activity for the reporting period?
If I have a quarterly tax filing, which has resulted in a credit, do I still need to file?
May I request a refund if I file a return with a credit?
You must apply the credit toward any surplus lines tax owed in your next quarterly filing. (See the SL-9 Form in OPTins, “Credit from Prior Return” on the first page). You may apply for a refund if, after 3 consecutive quarters, the credit amount remains, or the licensee has cancelled the surplus lines license. You may submit your request to: email@example.com.
When are endorsements reported?
Are any surplus lines premiums exempt from the 4% surplus lines tax? (C.G.S.38a-743)
- the State of Connecticut or any agency thereof,
- any town or agency of such town, or
- any special taxing district that appears in the policy as the named insured and is responsible for the payment of premiums shown on the policy.
Does a diligent effort to place business with an admitted carrier need to be made for Exempt Commercial Purchasers (ECP)?
On or after July 21, 2011, the NRRA provides that a surplus lines broker seeking to procure or place non-admitted insurance on behalf of an "exempt commercial purchaser" is not required to perform a diligent search if: 1) the broker has disclosed to the exempt commercial purchaser that insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and 2) the exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a non-admitted insurer. Public Act 11-61 adopts the NRRA definition of "Exempt commercial purchaser," which is set forth in the "key definitions" section of this bulletin below.
Please review Department Bulletin SL-2 for the definition of an “Exempt Commercial Purchaser”.
Please do not remit penalty and interest payments with your late tax payment. The Insurance Department will assess the late filing penalty and interest in OPTins and then send an email “invoice” to the Surplus Lines filer to advise that the assessment has been made. The OPTins filer can then go back into the filing quarter (for which the late tax payment was made), and pay the assessment on that quarterly filing in OPTins.
Are brokers and producers allowed to charge service fees and what are the limits?
Are broker fees, services fees, and policy fees subject to the 4% surplus lines tax?
Where is the White List (listing of surplus lines insurers) located?
What is the Exportable List? (C.G.S. 38a-741)
Is there specific language that is required to be printed on surplus lines policies? (C.G.S. 38a-745)
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.
What is the 115A form?
Where can I find information about Independently Procured Policies?
Are there additional resources on these topics I may find helpful?
I still have questions regarding the Surplus Lines filing, who do I need to contact?