RÉSUMÉ DIGEST
ACT 386 (HB 259) 2015 Regular Session Thierry
Prior law authorized the levy of a tax at the rate of 5% per year on the premiums on surplus
lines insurance reported quarterly in the surplus lines tax report. Existing law requires the
tax to be collected by the commissioner of insurance and remitted to the state treasurer for
deposit into the state general fund.
New law reduces the rate of the tax from 5% per year to 4.85%.
Prior law exempted the portion of surplus lines premiums not allocable to this state from the
surplus lines tax.
New law repeals the exemption and 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.
Prior law provided for the manner and format of the quarterly surplus lines tax report
required to be submitted to the commissioner of insurance.
New 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.
Prior law required 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.
New law repeals the requirement of the commissioner to enter the Nonadmitted Insurance
Multi-State Agreement.
New law excepts certain educational institutions from the tax on gross premiums for surplus
lines of insurance. Further excepts purchases of insurance by political subdivisions having
a population not less than 350,000 persons.
Existing law exempts certain insurance from the requirements of prior law relative to surplus
lines insurance from unauthorized insurers.
Prior law authorized the levy of a tax at the rate of 5% per year on the portion of premiums
on surplus lines insurance received from ocean marine and foreign trade coverages.
New law reduces the rate of the tax from 5% per year 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.
Provisions of new law that except educational institutions and certain political subdivisions
provided for in existing law from the tax on gross premiums for surplus lines of insurance
become effective July 1, 2015.
Remaining provisions of new law, effective October 1, 2015.
(Amends R.S. 22:439 and 443(A)(intro. para.) and (2)-(4); Repeals §2 of Act No. 361 of
2011 R.S.)