Tennessee Department Of Commerce And Insurance Issues Bulletin Advising Of Taxation Of Surplus Lines Premiums Post-NIMA Dissolution

Carlton Fields
Contact

In a special focus article in May, we wrote about the future of multi-state allocation of nonadmitted premium tax revenue following the dissolution of the Non-Admitted Insurance Multistate Agreement (NIMA). We followed up on this issue in July, with an article regarding Florida’s bulletin on the topic. On September 6, 2016, the Tennessee Department of Commerce and Insurance issued its own bulletin with the following guidance, effective October 1, 2016. The bulletin begins by noting that Tennessee has reached agreement with the Florida Surplus Lines Service Office for continued use of the Surplus Lines Information Portal (SLIP). The bulletin then provides that all policies effective on or after October 1, 2016, for which Tennessee is designated as the Home State, will be reported as single state policies with 100 percent of the premium being reported to and taxed by Tennessee through SLIP. These policies will, however, be subject to a 0.175 percent gross premium SLIP transaction fee, in addition to the 5 percent surplus lines premium tax, though these costs may be passed along to the insured. For all policies with effective dates of October 1, 2014 through September 30, 2016, no SLIP transaction fee will be charged.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Carlton Fields | Attorney Advertising

Written by:

Carlton Fields
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Carlton Fields on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide