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Q:
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If I have a multi-state risk with property in Montana. Do I have
to pay taxes to Montana when the taxes for
100% of the premium are included on the master policy for the state of
domicile which happens to not be Montana?
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A:
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Yes, you only have to pay tax on
the portion of the premium associated with the Montana risk per 33-2-311.
33-2-311 - Tax on surplus lines. There is imposed upon premiums collected for surplus
lines insurance transacted in this state a tax at the same rate and
computed in the same manner as provided in 33-2-705
as to premiums of authorized insurers, except that amounts collected from
the insured specifically for applicable state and federal taxes, and in
excess of the premium otherwise required, are not considered to be part of
the premium for the purposes of such computation. Upon filing of the annual
statement referred to in 33-2-310(2),
the surplus lines insurance producer shall pay to the commissioner the
amount of tax owing as to surplus lines insurance business transacted by
him during the preceding calendar year. If a surplus lines insurance policy
covers risks or exposures only partially in this state, the tax payable
must be computed upon the proportion of the premium which is properly
allocable to the risks or exposures located in this state.
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Q:
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Is Inland Marine subject to Fire Tax?
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A:
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Yes, Effective January 1,
2004 all submissions received by the Montana Surplus Lines Stamping Office
will be subject to the 2.5% Fire Premium Tax on Inland Marine premiums. Tax
is calculated using 60% of the base Inland Marine premium multiplied by
2.5% Fire tax. See 33-2-317.
Exemptions and http://www.mslaa.org/news.html
for further detail.
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Q:
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Am I allowed to charge a Filing Fee or Broker Fee on
a Surplus Lines policy in the state of Montana?
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A:
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No, per the Montana Department of
Insurance interpretation of (MCA
33-15-102) you
are not allowed to charge any fees other than the inspection fee for the
exact amount of the inspection. If
it is determined that broker fees, filing fees or policy fees have been
charged it can result in loss of licensure.
If you have any questions please call the Department of Insurance at
406-444-2040.
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Q:
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Are Reservations in Montana exempt to Premium Taxes and Fire
Taxes?
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A:
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Yes, but they are not exempt to
the Stamping Fee which is an administrative cost for processing the
filing. If you have any questions
please call Barb Vander Mars at the Department of Insurance for more detail
406-444-2040.
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Q:
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What are the requirements for using the “10% AND
$1500 exception” that was passed in the 2005 legislative session (HB-631)?
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A:
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1. The unauthorized market
quote was placed with a surplus lines company that is “A” rated or better.
2. The authorized market
quote that was used was the lowest premium from the diligent search.
3. The difference between
the authorized market quote and the unauthorized market quote meet both the
10% AND the $1500 requirements.
For more information see MCA
33-2-302 or call 406-444-2040.
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Q:
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Is the diligent search still required if you want to
use the “10% AND $1500 exception” ?
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A:
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The answer is “YES”. Nothing has changed regarding the
diligent search. It still has to be
completed and documented before you can write business in the surplus lines
market even if there is a company in the authorized market that will write
the risk. Once you finish the
diligent search you can take the lowest authorized market quote and compare
it to the surplus lines quote to see if it is eligible for this exception.
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Q:
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How do I get a resident/non-resident Montana Surplus
Lines license?
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A:
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Get the application here or you can go to the Department
of Insurance website http://sao.mt.gov/forms/index.asp and look under licensing.
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Q:
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Where do I send Surplus Lines submission form,
Endorsements and Cancellations?
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A:
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As of
July 1, 2009
State
Auditors Office
840
Helena Ave
Helena,
MT 59601
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We have phased out our old P.O Box
and moved all mail to our physical address.
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Q:
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If I have completed a diligent search and prior to
writing the policy come to find out that an insurance carrier in the
admitted market will write the risk, can I still file with Surplus Lines?
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A:
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No, if the risk will be accepted
by any insurance carrier in the admitted market it cannot be filed through
surplus lines. (MCA
33-2-302)
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Q:
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Are Courtesy Filings allowed in Montana?
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A:
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No
- Montana does not allow Courtesy Filings
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