Pennsylvania Statutes Title 40 P.S. Insurance § 991.1512. Taxation of premiums paid by purchasing groups

(a)(1) Premiums paid for coverage obtained from admitted insurers and risk retention groups doing business in this Commonwealth shall be taxed on the same basis as premiums paid to admitted insurers under section 902 of the act of March 4, 1971 (P.L. 6, No. 2),  1 known as the “Tax Reform Code of 1971.”

(2) Premiums paid for coverage obtained from a nonadmitted insurer in compliance with this article shall be taxed at the rate applicable to premiums paid to surplus lines insurers pursuant to section 1621(a). 2

(b)(1) To the extent that the purchasing group or its members pay premiums for coverage of risks resident or located within this Commonwealth to admitted insurers or risk retention groups doing business in this Commonwealth, the insurer or risk retention group receiving those premiums is responsible for remitting the tax to the Department of Revenue.

(2) To the extent that the purchasing group or its members pay premiums for coverage of risks resident or located within this Commonwealth to a nonadmitted insurer, the surplus lines agent who places the business shall collect and remit the taxes for premiums.

(3) To the extent a surplus lines agent does not effect coverage, the purchasing group shall collect and remit the tax for coverage of risks resident or located in this Commonwealth. To the extent the purchasing group does not remit the tax, the purchasing group shall inform each member of the responsibility for individual remittance of the tax.