Minnesota DOR Issues Notice to Surplus Lines Brokers on Nonadmitted Insurance Premium Excise Tax Calculations

The Minnesota Department of Revenue Jan. 6 issued a notice that all surplus line brokers, brokering nonadmitted insurance policies for insureds whose home state is Minnesota, must report and pay the nonadmitted insurance premium excise tax. The notice replaces the 2014 notice, clarifying the amount of a broker fee that must be included in gross premiums. A broker can use three methods to determine the broker fee amount included in gross premiums, including: 1) the entire broker fee; 2) the average percentage commission multiplied by the premiums for fee-only policies under the broker agreements; or 3) the industry average commission ...