Montana Surplus Lines Agents' Association

 

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Surplus Lines

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1.      Policy Premium is the total premium.

2.      Fire Premium is the actual Fire Premium or 60% of the Property Portion of the Policy.

3.      Inspection Fees are allowed in Montana for the Actual Cost of Inspection and are Taxable.  Note: Policy Fees Are Not Allowed In Montana.

4.      Premium Tax is calculated by multiplying the Total Policy Premium plus the Inspection Fee (if any) by .0275 or 2 ¾%.

5.      Fire Tax is calculated by multiplying the Fire Premium (see line 2) by .025 or 2.5%.

6.      Stamping Fee is calculated by multiplying the Policy Premium Only (see line 1) by .01 or 1%.  Note: Inspection Fee is Not included when making this calculation.

Sample Policy:

General Liability $500.00

Property $500.00 (If actual fire premium is not available, multiply the $500.00 property portion of policy by 60% to arrive at the $300.00 fire premium.)

Total Premium $1000.00

Inspection Fee $25.00 (When there is an inspection add it to the total premium and multiply by 2 ¾% to arrive at $28.18 premium tax.)

Policy Premium

$1000.00

Fire Premium

$300.00

Inspection Fee

$25.00

Premium Tax (2 ¾%)

$28.18

Fire Tax (2.5%)

$7.50

Stamping Fee (1 %)

$10.00

Send no money with Montana Surplus Lines Submission Form.  You will be billed monthly for the Stamping Fee.  You will receive an Annual Statement from this office for all other taxes by March 1st. The Annual Statement and check for all taxes are due to the Montana Insurance Department by April 1st of each year. 
Late payments to the state can result in a $25 per day late fee.