Home State:
The term “principal place of business” has been interpreted by the courts to mean what?
The state where the corporate headquarters is located; state of domicile is not a correct answer, since that may not be the principal place of business.
What state adopted the Surplus Lines Information Portal (SLIP) for the reporting and payment of surplus lines premium taxes?
Colorado
If a portion of the risk is in more than one state, which state can collect surplus lines tax for a policy under the NRRA?
Home state of the insured
If a policyholder has exposures in more than one state, what state(s) can require a surplus lines broker to be licensed to place a surplus lines policy?
Home state of the insured
“Export list” refers to what?
A list of hard to place coverages created by some states for which no diligent search is required – known as an export list.
What is a purchasing group?
An entity formed by businesses or individuals with similar liability risks to collectively purchase commercial liability insurance on a group basis.
What is the home state for a policy if 100% of the insured risk is outside of the state where the insured’s principal place of business is located?
State where the largest amount of premium is attributed.
What state amended its law to no longer require an annual zero report (Form ID-15).
In which state or states do cities or counties collect a surplus lines tax based upon a policy with risk in that jurisdiction?
Kentucky local governments attempt to collect surplus lines tax
Which state requires a self-appointment to maintain a surplus lines license?
Florida
“Courtesy filing” refers to what?
A surplus lines broker making a tax filing for another broker when the surplus lines broker was not the surplus lines broker that placed the policy with the surplus lines carrier or involved in the placement [the retail agent may file the surplus lines taxes even though it’s not the licensee that placed it with the carrier.
What is the difference between a Risk Retention group and a Purchasing Group?
The Liability Risk Retention Act of 1986 or LRRA
What is the home state if the affiliated group’s largest member is a company with headquarters in Texas, but 100% of the premium is attributed to risks in Florida?
Florida
What state created the Premium Tax Processing System (PTPS), which allows Insurers and Surplus Line Brokers (SLB) to complete the Annual Insurance (Premium) Tax Return filings online rather than by submitting paper documents?
California
What is one type of expense paid by the policyholder that could be subject to surplus lines tax, other than the premium charge by an insurance company?
Broker fees, inspection charges, membership fees, MVR charge, policy fees by carrier including finance charges, surveys.
How many of the NARAB Directors that the President nominated were confirmed by the Senate?
None – 10 were appointed by President Obama; none confirmed
“Exempt commercial purchaser” under the NRRA refers to what?
NRRA does not require a diligent search of admitted market for exempt commercial purchasers – which qualify as ECP’s under the NRRA - basically large sophisticated commercial policyholders
What surplus lines tax implication makes Purchasing Groups unique under the NRRA?
Risk Purchasing Groups often must file and pay surplus lines taxes in all states where members procure coverage.
What is the home state if the affiliated group’s largest member has headquarters in TX, insured exposures in all 50 states, but 70% of the premium is in FL?
Texas
What state issued Advisory Letter 2025-01 on January 17th, 2025 regarding Policy Fees on Surplus Lines Insurance Policies. The purpose of Advisory Letter 2025-01 is to emphasize that “policy fees” are subject to premium tax?
Louisiana
What are three types of SL policyholders that are exempt from surplus lines tax in some states?
Any three of these - local governmental entities, marine risks, aviation risks, railroads engaged in interstate commerce, Indian or tribal lands, school districts.
The home state of the insured is the only state that can require a surplus lines broker’s license under what law?
The NRRA
Domestic Surplus Lines Insurer refers to what?
A law allowing a surplus lines insurer to operate as a surplus lines insurer in its state of domicile. Before DSLI laws, a carrier had to be admitted in its state of domicile
What surplus lines tax implication makes Purchasing Groups unique under the NRRA?
Risk Purchasing Groups often must file and pay surplus lines taxes in all states where members procure coverage.
What is the home state for a policy issued to an affiliated group of companies?
The home state of the member to which the largest percentage of premium is attributed
In 2025, what state implemented a requirement for a non-resident surplus lines licensee to maintain a $50,000 bond and then subsequently repealed that requirement?
Alabama
Name one reason the premium reported in an insurance company schedule T in a state might not reconcile with the premium reported by surplus lines brokers in the same state?
Carrier’s report based on risk state and not home state in several states that require carriers to report. The broker does not pay tax based upon tax exempt risks, and some states tax broker fees, inspections, and there could be cancellations, return premium/timing differences, installment premiums, independently procured premium: insurer records written when bound, but broker pays taxes based upon receipt of cash.
The states were required to offer non-resident surplus lines broker licenses by what law?
Gramm Leach Bliley
"NARAB" refers to what?
National Association of Registered Agents and Brokers
Name one state that Purchasing Groups file and/or report business differently than regular Surplus Lines business?
Any of these states are correct: Mississippi, North Carolina, Connecticut, Arkansas, Alabama