Tuesday, July 14, 2009

NJ Increases Surplus Lines Premium Tax

The New Jersey Department of Banking and Insurance announced that premium tax rate on surplus lines insurance increased from three percent to five percent on June 29.

In addition, three percent of the premium receipts tax covering fire insurance will be paid to the Treasurer of the New Jersey State Firemen’s Association and the remaining two percent of the premium receipts tax will be forwarded to the Commissioner of Banking and Insurance.

This changes requires changes to the surplus lines premium receipts tax forms and instructions related for submission of quarterly surplus lines premium taxes by producers, and for out-of State placements.

The state said that surplus lines agents and insureds required to submit premium receipts tax should utilize the revised forms and instructions for the submission of premium taxes beginning with the 3rd quarter (July 1, 2009 through September 30, 2009). The Department is developing proposed amendments to N.J.A.C. 11:19-3 to reflect the current statutory requirements. Filings not conforming with the new rates and forms will be returned to filer.

Questions may be directed to the Surplus Lines Examining Office at: (609) 292-5350 x50088 or x50106, or by e-mail to william.leach@dobi.state.nj.us or

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