SURPLUS LINES FAQ - Delaware Insurance Commissioner

More documents

Recommendations

Info

31. Can the quarterly SL-1917 or the annual SL-1916 be completed online? Yes! The Delaware Insurance Department has partnered with the National Association of Insurance Commissioners (NAIC) in the use of the OPTins (Online Premium Tax for Insurance) tax filing program. OPTins provides immediate, secure transmission and receipt of premium tax reports and payments. Although the use of OPTins is optional at this time, the Department strongly encourages all companies and SL brokers to use OPTins to electronically submit their Delaware premium tax forms and payments. 32. What penalties could be assessed in association with premium tax returns? The Commissioner is empowered to assess penalties for various reasons, but the most common penalty associated with premium tax filings is the Late or Incomplete Filing Penalty. If any broker fails to file tax reports or fails to remit the tax prior to the 1st day of April after the tax is due, the broker is liable for a fine of $25 for each day of delinquency commencing with the 1st day of April. This is a minimum penalty. Further penalties and disciplinary action may be taken, up to and including suspension of the surplus lines broker’s license. 33. Can I request an extension of time for filing my tax return or payment of tax? Yes. The Tax Section is permitted to grant an extension for up to 15 calendar days if the request is deemed reasonable. Requests for longer extensions must be reviewed by the Commissioner. All requests are reviewed on an individual basis. Requests must be received in writing (electronic PDF format is acceptable) at least 30 days before the tax due date. Send requests to: Delaware Insurance Department Premium Tax Section 841 Silver Lake Blvd. Dover, De 19904-2465 Or email request to: Ann Fletcher, Tax Coordinator at ann.fletcher@state.de.us. 34. How do I request a refund if I have an overpayment? The Department will automatically request refunds based on the amount listed on the Annual Tax Report (SL-1916) after careful review of the tax return. It is not necessary to send a separate request for refund. 35. How do I amend my premium tax return? Use a blank copy of the tax return for the calendar year or quarterly filing you are amending. Forms for prior years can be found by clicking the link labeled Prior Year Forms on the Surplus Lines Page. Complete the return as if filing for the first time, including signatures. Attach a cover letter explaining the reason for the amendment. Follow the same filing instructions as the original return.
36. In Part 2 of the annual tax return we provide information about the State Support of Fire Companies, but the form says this is not a tax. Can you please tell me why we provide this information to you? This section of the form is used to report what is generally referred to as “Fire Tax” because the premium amounts stated on these reports are used to calculate the amount of State support for volunteer fire departments. Fire Tax is not actually a “tax”, but rather a “break-down by lines and location” report. On the premium tax report, a company must report ALL insurance business written in Delaware by the broker during the previous calendar year. But the Fire Tax Report assembles separate data only on property/casualty lines of business and breaks down the premiums based on the location of risks: City of Wilmington, New Castle County, Kent County, and Sussex County, respectively. Based on the reported Fire Tax figures, a specified percentage of the funds collected through premium taxes is then disbursed to volunteer fire departments throughout the State, and to the City of Wilmington in accordance with 18 Del. C., §705(b). IMPORTANT: The information requested in Part 2 of the annual tax report is required by law. If Part 2 of the form is not completed, the tax return will be considered incomplete will not be accepted. The tax report will be returned to the broker for completion and the broker will be subject to the Late or Incomplete Filing Penalty. 37. If we have a credit due in one quarter on return premiums, should we carry it over to the next quarter? For example, in the 2nd quarter we had a credit due to us, but in the 3rd quarter we owe tax. Should we apply the credit to the 3rd quarter amount and pay the difference, or should we pay the entire 3rd quarter amount and wait for the refund to come later? You may apply the credit to the third quarter amount and pay the difference, but you must make a note of it on the third quarter SL-1917 form showing that it is a credit from the second quarter. Please note that you may not carry a credit from year to year. When you file the annual SL- 1916 form you will report all the premiums written during the year, as well as all the return premiums, and if there is a credit at year-end the Department will issue a refund check. 38. We are normally a wholesaler and receive our business through a retail broker. We now have a case in which we are the Retailer and the SL Broker. What forms are required and what do we have to file with the Department when we place this business? First, you need to complete the SL-1904 listing the declinations that show that a diligent effort was made to place the risk in the admitted market. This form gets placed in your files. Do not send it to the Department. After the coverage is placed, submit the SL-1905 Notice of Insurance Transaction Form as an email attachment in Excel format. This form must be submitted within 30 days after the policy effective date. Do not send the SL-1905 in paper or PDF format and do not attach anything to it. You will pay the tax on the policy when you submit the next quarterly SL-1917.
Page 1 and 2: Office of the Insurance Commissione
Page 3 and 4: 41. I need to submit a filing on a
Page 5 and 6: � Disclosure to Insured: Whenever
Page 7 and 8: 14. Can a surplus lines broker add
Page 9: Tax returns, attachments, and check
Page 13 and 14: Check with the underwriter. If it i
Page 15 and 16: The check boxes serve as electronic

SURPLUS LINES FAQ - Delaware Insurance Commissioner

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?