Colorado Department of Regulatory Agencies Proposes Premium Tax Regulations on Nonadmitted Insurers’ Surplus Lines Insurance

The Colorado Department of Regulatory Agencies Oct. 1 proposed regulations on surplus lines insurance issued by nonadmitted insurers for excise tax purposes. The proposal includes measures: 1) clarifying that the rule applies to licensed producers for the kind of surplus lines insurance to be exported; 2) providing that every nonadmitted insurance policy is subject to a tax on the net premium; and 3) providing that a surplus lines broker may not report and file premium tax on a surplus line placement that the broker wasn’t involved in. A public hearing will be held on Nov. 1 and written comments may ...