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.
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))