Iowa Insurance Divison Proposes Amending Regulations on Surplus Lines Insurance Producer’s Collection of Excise Tax

The Iowa Insurance Division Sept. 20 proposed to amend regulations on surplus lines insurance producers’ collection of tax for excise tax purposes. The proposal includes measures to: 1) provide that an eligible surplus lines insurance producer must collect premium tax from the surplus lines insurer by withholding the appropriate percentage of premiums when placing insurance; and 2) clarify that to qualify as an eligible surplus lines insurer, an insurer or domestic surplus lines insurer must have three years of continuous operation without significant ownership or management changes and must submit the prescribed application to the division. A public hearing will ...