HLS 21RS-193 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 462
BY REPRESENTATIVE HUVAL
INSURANCE/SURPLUS LINE: Provides relative to the tax on surplus lines and
unauthorized insurance
1 AN ACT
2To amend and reenact R.S. 22:439(A)(1), (2)(introductory paragraph), and (3) and (B) and
3 440 and to enact R.S. 22:439(E), relative to the tax on surplus lines and unauthorized
4 insurance; to provide for a tax on the direct placement of unauthorized insurance; to
5 provide for direct placement tax reports; to provide for a penalty for the failure to
6 pay the tax or to file the required report; to provide for the waiver of the penalty; to
7 provide for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 22:439(A)(1), (2)(introductory paragraph), and (3) and (B) and 440
10are hereby amended and reenacted and R.S. 22:439(E) is hereby enacted to read as follows:
11 §439. Tax on surplus lines and unauthorized insurance
12 A.(1) There shall be a tax of four and eighty-five one hundredths of one
13 percent per annum on the gross premium without regard to the location of the
14 covered property, risk, or exposure for all surplus lines of insurance placed through
15 a Louisiana licensed surplus lines broker with a surplus lines insurer or other
16 unauthorized insurer and for which Louisiana is the home state of the policyholder
17 as defined in R.S. 22:46(8.1). The commissioner shall collect the tax and deposit it
18 with the state treasurer who shall credit it to the state general fund.
19 (2) On or before March first, June first, September first, and December first
20 of each year, each surplus lines broker shall transmit to the commissioner a surplus
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HB NO. 462
1 lines tax report and remit the tax payable pursuant to this Subsection. The
2 commissioner shall prescribe the manner and form of the surplus lines tax report,
3 which shall include all of the following:
4 * * *
5 (3) The commissioner shall not require a quarterly report for any quarter in
6 which a surplus lines broker has no surplus lines or other unauthorized insurance
7 premium to report. The commissioner shall require the filing of the report due on
8 or before March first in order to certify the reporting of all surplus lines and other
9 unauthorized insurance business conducted during the calendar year or the absence
10 of any business during the calendar year.
11 B. Every person placing insurance without a licensed Louisiana producer or
12 surplus lines broker shall transmit a report and remit the tax to the commissioner
13 pursuant to Subsection A of this Section.
14 (1) There shall be a tax of four and eighty-five one hundredths of one percent
15 per annum on one hundred percent of the gross premium without regard to the
16 location of the covered property, risk, or exposure for all insurance placed directly
17 by the policyholder with a surplus lines insurer or other unauthorized insurer and for
18 which Louisiana is the home state of the policyholder as defined in R.S. 22:46(8.1).
19 (2) Each policyholder directly placing insurance shall transmit a direct
20 placement tax report to the commissioner and remit the tax payable pursuant to this
21 Subsection within thirty days of the transaction. The commissioner shall prescribe
22 the manner and form of the direct placement tax report.
23 * * *
24 E. The commissioner shall collect the tax imposed by this Section and
25 deposit it with the state treasurer who shall credit it to the state general fund.
26 §440. Penalty for failure to file statement report or remit tax
27 A. In case of any failure of a surplus lines broker to make a report required
28 or to make payment of the tax provided imposed by R.S. 22:439, a penalty of ten
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HB NO. 462
1 percent shall be added to of the amount of tax due, and shall be paid to the
2 commissioner of insurance along with the tax due, unless.
3 B. The commissioner may waive the payment of the penalty if all of the
4 following occur:
5 (1) There is satisfactory evidence to his satisfaction is submitted to him to
6 show that such the failure to report or pay pursuant to R.S. 22:439 was due to some
7 an unforeseen or unavoidable reason other than mere neglect.
8 (2) If the The delinquency be is for no more than thirty days after the due
9 date of the report required by or after the due date for the payment of taxes as
10 provided the tax imposed by R.S. 22:439, neglect will be presumed and the ten
11 percent shall be added without any discretion on the part of the commissioner of
12 insurance.
13 C. After the lapse of thirty days, until the report is filed and the delinquent
14 tax paid, the commissioner of insurance may suspend or revoke the license of the
15 delinquent surplus lines broker to do business in this state.
16 D. Any fine penalty collected by the commissioner of insurance hereunder
17 pursuant to this Section shall be paid to the state treasurer and credited to the general
18 fund.
19 Section 2. This Act shall become effective July 1, 2021.
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 462 Engrossed 2021 Regular Session Huval
Abstract: Provides relative to the tax on surplus lines and unauthorized insurance and
reporting requirements.
Present law imposes a tax of four and eighty-five one hundredths of one percent per annum
on the gross premium of surplus lines of insurance for La. home state policyholders.
Proposed law expands the imposition of the tax in present law to insurance placed through
and directly by La. licensed surplus lines brokers and unauthorized insurers regardless of the
covered property, risk, or exposure.
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HB NO. 462
Present law exempts surplus line brokers who are not in possession of any surplus lines from
the quarterly surplus line reporting requirement.
Proposed law retains present law and requires surplus line brokers to not have other
unauthorized insurance premiums to report to be exempted from the quarterly surplus line
reporting requirement.
Present law provides that every person placing insurance without a licensed La. producer or
surplus lines broker shall transmit a report and remit the tax to the commissioner.
Proposed law repeals present law and provides that each policyholder directly placing
insurance shall transmit a direct placement tax report to the commissioner and remit the tax
payable within 30 days.
Proposed law provides that the commissioner shall prescribe the manner and form of the
direct placement tax report.
Present law provides that after the lapse of 30 days, until the report is filed and the
delinquent tax paid, the commissioner may revoke the license of the delinquent surplus lines
broker to do business in this state.
Proposed law retains present law and affords the commissioner discretion to suspend or
revoke the license of the delinquent surplus lines broker.
Proposed law makes technical changes.
Effective July 1, 2021.
(Amends R.S. 22:439(A)(1),(2)(intro. para.), and (3) and (B) and 440; Adds R.S. 22:439(E))
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