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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
138
:
NON-ADMITTED INSURERS AND SURPLUS LINES INSURANCE
§
5035. Surplus lines tax
(a) Where
Vermont is the home state of the insured, gross premiums charged, less any
return premiums, for surplus lines coverages placed with non-admitted insurers
are subject to a premium receipts tax of three percent, which shall be
collected from the insured by the surplus lines broker at the time of delivery
of policy or other confirmation of insurance, in addition to the full amount of
the gross premium charged by the insurer for the insurance. The tax on any
portion of the premium unearned at termination of insurance shall be returned
to the policyholder by the surplus lines broker. Nothing contained in this
section will preclude a surplus lines broker from charging a fee to the
purchaser of the contract sufficient to recover the amount of this tax. Where
the insurance covers properties, risks, or exposures located or to be performed
both in and out of this State, the sum payable shall be computed based on gross
premiums charged, less any return premiums, as follows:
(1) An amount
equal to three percent on that portion of the premiums applicable to
properties, risks, or exposures located or to be performed in Vermont; plus
(2) An amount
equal to a percentage on that portion of the premiums applicable to properties,
risks, or exposures located or to be performed outside Vermont. Such percentage
shall be determined based on the laws of the jurisdiction within which the
property, risk, or exposure is located or to be performed.
(b) At the time
of filing his or her quarterly report with the Commissioner, each surplus lines
broker shall file a duplicate report and remit the premium tax due thereon to
the Commissioner of Taxes.
(c) If the tax
collectible by a surplus lines broker under this section is not paid within the
time prescribed, it shall be recoverable in a suit brought by the Commissioner
against the surplus lines broker and the surety on the bond filed under section
4800 of this title. (Added 1979, No. 50, § 2; amended 1981, No. 42, § 4; 2001,
No. 97 (Adj. Sess.), § 19; 2011, No. 49, § 9, eff. May 26, 2011.)
