State

Diligent Effort

Surplus Lines Tax

Stamping Fee

Payment/Filing Due Date

AL

Written report, validating coverage was written through unauthorized market, must be filed within 30 days of effective date of policy.

6 percent

None

March 1

AK

Documentation of a diligent search in the admitted market must be provided to surplus lines broker prior to binding.

2.7 percent, plus 1 percent filing fee; 0.75 percent for wet marine and transportation

None

Quarterly on or before March 1, June 1, September 1, and December 1

AZ

After diligent effort has been made to procure coverage, insurance is recognized as surplus line.

3 percent

.2 percent of the sum of the policy premium plus any applicable policy fees

For Arizona single-state risks, the tax is due semiannually on or before February 15 of each year for the preceding July through December and on or before August 15 of each year for the preceding January through June.

For multistate risks transacted by the broker on behalf of insureds whose home state is Arizona, the tax is due quarterly on or before February 15 for the quarter ending the preceding December 31, May 15 for the quarter ending the preceding March 31, August 15 for the quarter ending the preceding June 30 and November 15 for the quarter ending the preceding September 30.

AR

If portion of risk can be written with admitted insure, it must be done. Can consider an offer of coverage that would require a gross premium of 20 percent or more higher than similar coverage may be considered a declination.

4 percent

None

Tax must be submitted within 60 days from the end of the month in which the policy is written.

CA

Must certify that three admitted insurers have declined the risk or that fewer than three insurers write the risk.

3 percent of Gross Prem; .225 percent Stamping Fee CF: NO IPC: YES

.250 percent

Tax is due on or before the first day of the third month following the calendar quarter in which insurance took effect or was renewed.

CO

Must document that coverage was not procurable from a minimum of three admitted insurers or that fewer insurers write the risk.

3 percent

.1 percent; temporarily suspended since 1/1/06

March 1

CT

Defined as declination by three licensed insurers or if the line of business is not available.

4 percent

None

Quarterly by February 15, May 15, August 15, and November 15

DE

Full amount of insurance must not be procurable. Notice of Insurance Transaction must be filed within 30 days of the policy effective date.

2 percent

None

March 1

DC

Monthly affidavit of nonavailability through admitted insurers must be filed by the tenth of each month.

2 percent; tax does not apply to fees levied by producer

None

Payable semiannually by February 1 and August 1

FL

Three declinations required; diligent effort must be verified by surplus lines agent.

5 percent; tax does not apply to commercial ocean marine, aviation, hangar keepers liability coverage, airport incidental products liability, and risks of state government and its agencies

.1 percent (referred to as a service fee)

Tax payments are due on or before the end of the next month following each calendar quarter. Service fee is paid monthly.

GA

Effort must be made to procure coverage from authorized insurers; surplus lines broker must file a quarterly affidavit.

4 percent; tax applies to fees levied by broker

None

Quarterly on or before April 15, July 15, October 15, and January 15

GU

Must file an affidavit that the insured is unable to procure coverage from admitted insurers.

4 percent; plus 2 percent for industrial or commercial liability

None

July 1

HI

Must verify that diligent effort was completed prior to placing risk.

4.68 percent

None

Within 45 days of the end of each calendar quarter

ID

Must make diligent effort with at least three authorized companies.

1.5 percent

.25 percent

March 1

IL

Must submit risk to at least three authorized companies.

3.5 percent plus 1 percent fire marshal tax on property premium

.1 percent

Surplus lines tax is due quarterly on or before February 15, May 15, August 15, and November 15 for the quarter ended approximately 45 days prior. Fire Marshal tax is due annually on or before March 31.

IN

Must file monthly affidavit of nonavailability by the 20th of each month.

2.5 percent, including inspection or policy writing fees

None

Taxes are due on or before February 1 and August 1.

IA

Must complete a diligent effort report with each electronic record submitted.

1 percent

None

Due with annual report on or before March 1. Quarterly reports are required to be filed on April 10, July 10, October 10 and January 10, summarizing the surplus lines insurance issued during the prior calendar quarter.

KS

Must file yearly affidavit by March 1 of each year stating that diligent effort has been made.

6 percent

None

March 1

KY

Must make diligent effort and may procure surplus lines coverage if the full amount of insurance required is not procurable.

3 percent plus 1.8 percent surcharge

None

Quarterly tax reports are required even if no Surplus Lines activity took place during the reporting period.

LA

Affidavit required for personal lines but not for commercial lines. Must be filed within 30 days of binding. What constitutes a diligent effort is determined on a case-by-case basis.

5 percent

None

March 1, June 1, September 1, December 1

ME

Diligent effort must be made, but no affidavits are required. Does not apply to wet marine, transportation, insurance on out-of-state subjects, railroads, or aircraft.

3 percent; applies to any amount paid or payable for an insurance policy, including all fees, such as membership, policy, survey, inspection, service and finance fees, that are assessed by and paid to an insurance company in consideration for an insurance policy

None

Within 30 days of the end of each quarter

MD

Affidavit of nonavailability must be filed within 45 days after month of procurement. Must receive three declinations. Required for personal lines but may be waived for commercial lines.

3 percent

None

Semi-annual reports on or before March 15 and September 15. Tax must be paid with report.

MA

Must file affidavit of nonavailability within 20 days of procurement. May be waived for some commercial risks.

4 percent; tax does not apply to fees levied by broker

None

Annually, payable in January at the time of the annual statement

MI

Must file taxes and supporting documentation.

2 percent plus .5 percent regulatory fee

None

Semiannual reports on or before February 15 and August 15 with the surplus lines tax payment

MN

Producer must show three declinations for coverage to be considered nonavailable. Must keep affidavit of nonavailability on file.

3 percent

.08 percent

Semi-annually on February 15 and August 15

MS

Must file monthly affidavit of nonavailability.

4 percent

.25 percent

Tax is to be paid within 30 days of January 1 and July 1. Policy fee is paid quarterly. Stamping fee is paid monthly.

MO

Must report placement within 30 days of effective date.

5 percent; applies to fees levied by surplus lines licensee

None

April 16

MT

Diligent effort required; must show a minimum of three declinations or that fewer than three companies insure the risk.

2.75 percent plus 2.5 percent additional tax on fire premiums

.25 percent if policy is mailed; no fee if filed electronically

March 1

NE

Must file quarterly reports on February 15, May 15, August 15, and November 15. No affidavits required.

3 percent

None

Quarterly, on February 15, May 15, August 15, and November 15

NV

Diligent effort required.

3.5 percent

.4 percent

Quarterly on or before February 15, May 15, August 15, and November 15

NH

Monthly report must be submitted by the 10th of each month.

3 percent

None

Annually in January for the previous year

NJ

Three declinations required.

5 percent

None

45 days after end of each calendar quarter

NM

Four declinations required; affidavit must be filed within 15 days of policy issuance

3.003 percent

None

Within 60 days of the end of each quarter

NY

Three declinations required.

3.6 percent

.2 percent

March 15

NC

Must file an affidavit stating that insurance for the risk was not available from licensed companies.

5 percent

None

Quarterly

ND

Affidavit of nonavailability must be filed within 60 days of the policy effective date. Must be signed by the producer and notarized.

1.75% on premium and all policy fees

None

April 1

OH

Must contact at least five authorized insurers; declinations can be assumed if insurer does not respond in ten days. Must submit affidavit within 30 days of policy effective date.

5 percent

None

March 31

OK

Due diligence search required.

6 percent

None

Within 31 days after the end of the quarter

OR

Letter of diligent search and statement of business placed must be filed within 90 days after procurement.

2..3 percent

$15 flat fee per policy; no fee for endorsements

Within 45 days of the end of each calendar quarter

PA

Declaration that diligent effort was made must be submitted within 30 days of placement. Three declinations required. Affidavit must be filed within 45 days of placement.

3 percent

$25 per filing. Stamping fees for filings received after 45 days of the effective date of the placement will carry a stamping fee of $50 per filing. $25 of the fee is to be payable by the insured with the remaining $25 payable by the surplus lines licensee.

January 31

PR

At least five declinations and affidavit required.

9 percent

None

Within 60 days after procurement

RI

Affidavit and at least three declinations required.

4 percent

None

April 1

SC

Diligent effort not specifically mentioned in statutes, but surplus lines brokers are personally liable for limits of coverage if broker fails to comply with nonadmitted insurers laws.

6 percent

None

Quarterly within 30 days after March 31, June 30, September 30, and December 31

SD

Must submit affidavit within 30 days of procuring coverage.

2.5 percent; 3 percent for fire premiums

None

April 1; if broker submitted more than $5,000 of surplus line taxes in any prior calendar year, taxes must be paid quarterly.

TN

Must submit affidavit of nonavailability within 30 days of the end of each calendar month. Surplus lines available only if full amount of coverage cannot be procured.

5 percent

None

March 1

TX

Must show diligent effort and file a copy of the contract within 60 days of issue or effective date, whichever is later.

4.85 percent; applies to any fees levied by broker

.06 percent

March 1

UT

Copy of the policy and justification for surplus lines placement must be filed within 60 days of policy effective date.

4.25 percent

.1500 percent

None specified

VT

Must file quarterly reports of all surplus lines business placed.

3 percent

None

Quarterly

VA

No requirements.

2.25 percent

None

March 1; beginning in 2013, taxes will be paid quarterly.

VI

No requirements.

5 percent

None

February 1, May 1, August 1, and November 1

WA

Must make diligent effort to procure from among a majority of authorized insurers.

2 percent

.10 percent

March 1

WV

Notarized affidavit required.

4.55 percent

None

Taxes are paid on a quarterly basis due February 15 for the quarter ending the preceding December 31, May 15 for the quarter ending the preceding March 31, August 15 for the quarter ending the preceding June 30, and November 15 for the quarter ending the preceding September 30.

WI

No requirements.

3 percent

None

March 1

WY

Must submit report that diligent search was conducted.

3 percent

None

March 1