DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 259 Engrossed 2015 Regular Session Thierry
Abstract: Reduces the tax rate on the gross premium of surplus lines of insurance. Expands the
surplus lines tax base to include non-Louisiana premiums; excepts certain educational
entities from the tax on the gross premium of surplus lines of insurance; and repeals
requirement that the commissioner of insurance enter into the Nonadmitted Insurance Multi-
State Agreement.
Present law authorizes the levy of a tax at the rate of 5% per annum on the premiums on surplus lines
insurance reported quarterly in the surplus lines tax report. Further requires the tax to be collected
by the commissioner of insurance and remitted to the state treasurer for deposit into the state general
fund.
Proposed law reduces the rate of the tax from 5% per annum on the premiums on surplus lines of
insurance to 4.85% on the gross premiums on surplus lines of insurance for which La. is the home
state of the policyholder.
Present law provides for the manner and format of the quarterly surplus lines tax report required to
be submitted to the commissioner of insurance.
Proposed law requires that surplus lines brokers only file surplus lines tax reports for those quarters
in which they place single-state surplus lines business. Requires all surplus lines brokers to file an
annual report certifying the reporting of all business placed during the calendar year on or before
March 1 of the following year.
Present law requires the commissioner of insurance to join the Nonadmitted Insurance Multi-State
Agreement or other cooperative compacts or agreements with other states for the purpose of
allocating surplus lines premiums on multistate policies and tax revenues.
Proposed law repeals the requirement of the commissioner to enter the Nonadmitted Insurance
Multi-State Agreement.
Present law provides that a portion of surplus lines premiums not allocable to this state shall be
exempt from the surplus lines tax.
Proposed law provides that the entire surplus lines premium of a surplus lines policy of which La.
is the home state of the policyholder shall be subject to the surplus lines tax. Proposed law excepts educational programs provided for in present law from the tax on gross
premiums for surplus lines of insurance.
Present law exempts certain insurance from the requirements of present law relative to surplus lines
insurance from unauthorized insurers.
Proposed law retains present law but reduces the rate of the tax from 5% per annum on the premiums
on surplus lines of insurance to 4.85% and eliminates the exemption for insurance on subjects
located, resident, or to be performed wholly outside of this state, or on vehicles or aircraft owned and
principally garaged outside of this state.
Effective July 1, 2015.
(Amends R.S. 22:439 and 443(A)(intro. para.) and (2)-(4); Repeals ยง2 of Act No. 361 of 2011 R.S.)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Except certain educational programs and entities provided for in present law from the
tax on gross premiums for surplus lines of insurance.
2. Eliminate the exemption provided for in present law, relative to surplus lines insurance
from unauthorized insurers, for insurance on subjects located, resident, or to be
performed wholly outside of this state, or on vehicles or aircraft owned and principally
garaged outside.
3. Change effective date from upon signature of the governor to July 1, 2015.