What is the surplus lines tax in Texas?

What is the surplus lines tax in Texas?

4.85%
Tax. 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.

How much is surplus lines tax?

Surplus lines tax/Stamping Fee: 3.0% payable by broker to the CDI; stamping fee of 0.25% (effective Jan. 1, 2020), payable by broker to The Surplus Line Association of California (SLA).

What is the Texas stamping fee?

0.075%
The stamping fee will drop from the current rate of 0.15% of gross premium to 0.075%. Please keep in mind the Stamping Fee will decrease from the current rate of 0.15% of gross premium to 0.075%.

Who is responsible for paying surplus lines taxes?

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.

What is a surplus lines courtesy filing?

Clarification has been requested regarding the propriety of so-called “courtesy filings.” The term “courtesy filing” is generally understood to mean where a surplus line broker is asked to make the surplus line filings and associated surplus line tax filings on behalf of a broker or agent that does not hold a …

Where does surplus lines tax go?

The NRRA generally requires that all surplus lines premium taxes be paid to the “home state” of the insured. Under the NRRA, the home state of an affiliated group is the state of the member of the group that has the largest percentage of premiums attributed to it.

What is a stamping fee?

Stamping Fee means, with respect to any Bankers’ Acceptance, an amount equal to the face amount thereof multiplied by the Applicable Margin for Bankers’ Acceptances.

Is Surplus Line Safe?

Surplus lines insurance protects against a financial risk that a regular insurance company will not take on.

What is the difference between excess and surplus?

is that excess is the state of surpassing or going beyond limits; the being of a measure beyond sufficiency, necessity, or duty; that which exceeds what is usual or proper; immoderateness; superfluity; superabundance; extravagance; as, an excess of provisions or of light while surplus is that which remains when use or …