Tax on surplus lines.
1. On or before March 1 of each year, each broker shall pay to the Commissioner a tax on surplus lines coverages written by him in unauthorized insurers during the preceding calendar year at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If a broker has paid any taxes pursuant to NRS 685A.175, he shall deduct the total paid from the tax due and pay the remainder, if any.
2. For the purposes of this section, the “premium” on surplus lines coverages includes:
(a) The gross amount charged by the insurer for the insurance, less any return premium;
(b) Any fee allowed by NRS 685A.155;
(c) Any policy fee;
(d) Any membership fee;
(e) Any inspection fee; and
(f) Any other fees or assessments charged by the insurer as consideration for the insurance.
Ę Premium does not include any additional amount charged for state or federal tax, or for filing affidavits or reports of coverage.
3. If a contract for surplus lines insurance covers risks or exposures only partially in this State, the tax so payable must be computed on that portion of the premium properly allocable to the risks or exposures located in this State. The Commissioner may adopt regulations which establish standards for allocating premiums for risks located in this State in the same manner as premiums are allocated pursuant to NRS 680B.030.
4. The Commissioner shall promptly deposit all taxes collected by him pursuant to this section with the State Treasurer, to the credit of the State General Fund.
5. A broker who receives a credit for tax paid shall refund to each insured the amount of the credit attributable to the insured when the insurer pays a return premium or within 30 days, whichever is earlier.
Last modified: February 27, 2006