Get Tennessee Surplus Lines Tax

“Diligent effort” requires a documented showing that coverage has been sought from and rejected by at least three authorized insurers currently writing such coverage and documenting these rejections.

A: Every surplus line broker must make an annual state tax filing. The amount of state tax is 3% of the California taxable surplus line premium transacted by the broker, for California home state insureds, from January 1st to December 31st of the previous year.

Surplus Lines Insurance vs. Regular insurance carriers, also called standard or admitted carriers, must follow state regulations concerning how much they can charge and what risks they can and cannot cover. Surplus lines carriers do not have to follow these regulations, which allows them to take on higher risks.

Surplus lines tax: 5%. Tennessee does not allow domestic surplus lines insurers in the state.

SURPLUS LINES TAXES Most states charge an insurance premium tax to insurance companies licensed and “admitted” to do business within their borders. Generally speaking, those carriers then pass the cost of those taxes onto their policyholders by adding a comparable amount to their premiums.

(a) Each captive insurance company shall pay to the department, on or prior to March 1 of each year, a tax at the rate of four tenths of one percent (0.4%) on the first twenty million dollars ($20,000,000), and three tenths of one percent (0.3%) on each dollar thereafter on the direct premiums collected or contracted ...

Surplus lines insurance is a special type of insurance that covers unique risks. It fills a gap in the standard market by covering things that most companies can't or won't insure.

The 4.85% surplus lines tax is regulated by the Texas Comptroller of Public Accounts. For questions related to the surplus lines premium tax, please contact the Comptroller's office at (800) 252-1387.