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Louisiana Revised Statutes Tit. 22, § 439. Tax on surplus lines and unauthorized insurance

Current as of January 01, 2023 | Updated by Findlaw Staff

A. (1) There shall be a tax of four and eighty-five one hundredths of one percent per annum on the gross premium without regard to the location of the covered property, risk, or exposure for all insurance placed through a Louisiana licensed surplus lines broker with a surplus lines insurer or other unauthorized insurer and for which Louisiana is the home state of the policyholder as defined in R.S. 22:46. The commissioner shall collect the tax and deposit it with the state treasurer who shall credit it as follows:

(a) An amount equal to ninety-six percent of the tax collected shall be credited to the state general fund.

(b) An amount equal to four percent of the tax collected shall be credited to the Louisiana Fire Marshal Fund as provided in R.S. 22:835.

<Text of subsec. (A)(1)(c) effective July 1, 2026.>

(c) Each fiscal year, the first five million dollars of the tax collected shall be credited to the Louisiana Fortify Homes Program Fund, established pursuant to R.S. 22:1483.1.

(2) On or before March first, June first, September first, and December first of each year, each surplus lines broker shall transmit to the commissioner a surplus lines tax report and remit the tax payable pursuant to this Subsection. The commissioner shall prescribe the manner and form of the surplus lines tax report, which shall include all of the following:

(a) All new and renewal policies for the calendar quarter in which the effective date of the policy falls.

(b) All other premium transactions for the calendar quarter in which the invoice falls.

(c) Any additional information required by the commissioner.

(3) The commissioner shall not require a quarterly report for any quarter in which a surplus lines broker has no surplus lines or other unauthorized insurance premium to report. The commissioner shall require the filing of the report due on or before March first in order to certify the reporting of all surplus lines and other unauthorized insurance business conducted during the calendar year or the absence of any business during the calendar year.

B. (1) There shall be a tax of four and eighty-five one-hundredths of one percent per annum on one hundred percent of the gross premium without regard to the location of the covered property, risk, or exposure for all insurance placed directly by the policyholder with a surplus lines insurer or other unauthorized insurer and for which Louisiana is the home state of the policyholder as defined in R.S. 22:46.

(2) Each policyholder directly placing insurance shall transmit a direct placement tax report to the commissioner and remit the tax payable pursuant to this Subsection within thirty days of the transaction. The commissioner shall prescribe the manner and form of the direct placement tax report.

(3) The commissioner shall collect the tax imposed by this Subsection and deposit it with the state treasurer who shall credit it to the state general fund.

C. The tax imposed on surplus lines pursuant to this Section shall not apply to the purchase of excess insurance obtained by an interlocal risk management agency pursuant to R.S. 13:5575 or R.S. 33:1359.

D. The tax imposed pursuant to this Section shall not apply to the purchase of insurance by or on behalf of any of the following:

(1) A college, university, school, institution, or program that is under the supervision or management of a system board of supervisors provided for in R.S. 17:3215 through 3217.1.

(2) A political subdivision having a population of not less than three hundred fifty thousand persons according to the latest federal decennial census.

(3) An agency of this state as defined in R.S. 39:2.

<Text of subsec. E effective July 1, 2026.>

E. (1) The commissioner may enter into cooperative endeavor agreements or other agreements for the receipt of policy information on surplus lines, directly placed, and other unauthorized insurance subject to the tax imposed by this Section.

(2) An agreement entered into pursuant to this Subsection may provide for any of the following:

(a) The use of a clearinghouse to perform functions required pursuant to the agreement.

(b) The collection of policy data in addition to premium.

(c) The computation of the tax due on the portion of premium attributable to each risk classification.

(d) The assessment of a clearinghouse transaction fee.

(e) The reporting of insurance transactions or policyholders that are exempt from the tax imposed by this Section.

(f) Any other provisions that facilitate the administration or collection of the tax imposed by this Section.

<Text of subsec. F effective July 1, 2026.>

F. The commissioner may promulgate and adopt rules and regulations in accordance with the Administrative Procedure Act for the administration and enforcement of the provisions of this Section, including the assessment of a clearinghouse transaction fee.

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Cite this article: FindLaw.com - Louisiana Revised Statutes Tit. 22, § 439. Tax on surplus lines and unauthorized insurance - last updated January 01, 2023 | https://codes.findlaw.com/la/revised-statutes/la-rev-stat-tit-22-sect-439/

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