No producer or agency shall place, procure, or effect insurance with a non-admitted carrier on a risk residing within Nebraska without having a surplus lines license from the Nebraska Department of Insurance.
- Application - The Fee for a surplus lines producer or agency license is $250. Application information can be found here and Neb. Rev. Stat. §44-5504.
- If an agent works for an agency that holds a surplus lines license, does the agent also need to hold a surplus lines license?
- If all the individual agent's business is placed through a licensed surplus lines agency, and all business is being reported for surplus lines tax purposes through the agency, then in such cases the individual agent does not need to hold a surplus lines license. However, the individual agent must be listed on the corporate surplus lines license in order to transact surplus lines business on behalf of the agency and also hold a current producer license. Neb. Rev. Stat. §44-5503.
- If all the individual agent's business is placed through a licensed surplus lines agency, and all business is being reported for surplus lines tax purposes through the agency, then in such cases the individual agent does not need to hold a surplus lines license. However, the individual agent must be listed on the corporate surplus lines license in order to transact surplus lines business on behalf of the agency and also hold a current producer license. Neb. Rev. Stat. §44-5503.
- What are the licensee's requirements for placing coverage with a non-admitted insurer?
- The producer or licensee is responsible for ensuring that a non-admitted carrier is eligible to write surplus lines business in Nebraska according to the requirements of Neb. Rev. Stat. §44-5508
- The producer or licensee is responsible for completing due diligence in determining if a risk is unable to be placed in the non-admitted market Neb. Rev. Stat. §44-5510
- Does Nebraska allow for self-procurement on a non-admitted basis?
- No, only if the insured meets the definition of an exempt commercial purchaser pursuant to Neb Rev Stat 44-5502 (6)
- How do I become authorized as an exempt commercial purchaser?
- If an insured feels they qualify as an exempt commercial purchaser pursuant to requirements in Neb Rev Stat 44-5502 they should complete this FORM and email it to doi.surpluslines@nebraska.gov
All surplus lines licensees are required to file quarterly reports and pay applicable premium taxes. The tax rate is 3% on gross premiums charged less any return premium taxes. Tax returns with tax due are required to be submitted electronically through OPTins. Additional information can be found on the OPTins website. Returns with no tax due (zero filings) can be made through OPTins or may be emailed to doi.surpluslines@nebraska.gov - Quarterly filings are due as follows:
- First Quarter - June 1
- Second Quarter - September 1
- Third Quarter - December 1
- Fourth Quarter - March 1
2023 Quarterly Attestation Statement
Surplus Lines Premium Tax Filing Information
- Where does a filer obtain the required forms to file?
- When filing through OPTins, the forms will be located there. If completing a zero filing and emailing the forms can be located here on the OPTins website and doi.surpluslines@nebraska.gov . When submitting the forms through email, the excel file must be submitted as an excel file and not as a PDF. The attestation should be submitted as a PDF.
- When filing through OPTins, the forms will be located there. If completing a zero filing and emailing the forms can be located here on the OPTins website and doi.surpluslines@nebraska.gov . When submitting the forms through email, the excel file must be submitted as an excel file and not as a PDF. The attestation should be submitted as a PDF.
- Are fees included as part of the premium amount when calculating taxes?
- Surplus lines tax is paid on the gross premium. Premium is defined in Neb. Rev. Stat. §77-907. "Premiums shall mean the consideration paid to insurance companies for insurance and shall include policy fees, assessments, dues, or other similar payments..." Any fee paid to the carrier should be included with premium as taxable. Any fee retained by the broker or paid to a third party would not be included with premium as taxable.
- Surplus lines tax is paid on the gross premium. Premium is defined in Neb. Rev. Stat. §77-907. "Premiums shall mean the consideration paid to insurance companies for insurance and shall include policy fees, assessments, dues, or other similar payments..." Any fee paid to the carrier should be included with premium as taxable. Any fee retained by the broker or paid to a third party would not be included with premium as taxable.
- When is tax due on a policy that is paid in installments?
- Tax is due on premium when it is collected. If a policy is paid in installments such as monthly, the tax would be paid on the premium collected the months included in the reporting period.
- Is an exempt commercial purchaser required to make quarterly filings?
- Yes, pursuant to Neb Rev Stat 44-5515 exempt commercial purchasers are required to make quarterly filings and pay tax when applicable just like licensees.
- Does Nebraska maintain a list of approved surplus lines carriers?
- No, Nebraska does not maintain a list of approved surplus lines carriers. To find if a company is eligible for surplus lines in Nebraska, use the following NAIC website. Enter the company name or NAIC number, then "Click for Report Options," go to "Licensing Report" then click on Nebraska. If it indicates the company is Authorized, then it is eligible to write surplus lines in Nebraska.
- To find if a non-United States Insurance carrier is eligible for surplus lines, click on the following NAIC website, scroll down to Quarterly Listing of Alien Insurers, click on the + and download the most recent listing.
- No, Nebraska does not maintain a list of approved surplus lines carriers. To find if a company is eligible for surplus lines in Nebraska, use the following NAIC website. Enter the company name or NAIC number, then "Click for Report Options," go to "Licensing Report" then click on Nebraska. If it indicates the company is Authorized, then it is eligible to write surplus lines in Nebraska.
