Publication Date
2023-11-07
effective date
2023-11-07
jurisdiction
Tennessee Property and Casualty Surplus Lines Licenses and Premium Tax Changes
On November 7, 2023, Tennessee Department of Commerce & Insurance published changes to license fees and terms for individuals. Please see below for updated sections.
**Who May be Licensed** **Non Resident - Individual** 1\.   Applicant must be a licensed nonresident insurance      producer. **License Fee and Term Section** **Resident - Individual** 1\.   Initial license application fee is $120.  Renewal fee      is $120. 2\.   License term is 24 months, running concurrently with the      underlying producer license.  The license expires on the last      day of the producer's birth month. 3\.   Initial license applications can be submitted either      electronically through the National Insurance Producer      Registry (NIPR) or by mailing a paper application to the      Department of Insurance.  License renewals must be submitted      through the NIPR.   4\.   Comprehensive licensing information is available at the      following website: [`https://bit.ly/3QwEovA`](https://bit.ly/3QwEovA)      a.   For a link to the NIPR, click on "Insurance Producer"           then click on "Link to NIPR".      b.   For information specific surplus lines agent licenses and           the paper application, click on "Surplus Lines Agent"           then click on "Surplus Lines Agent Licensing Packet". **Non Resident - Individual** 1\.   Initial license application fee is $120.  Renewal fee      is $120. 2\.   License term is 24 months, running concurrently with the      underlying producer license.  The license expires on the last      day of the producer's birth month. 3\.   Initial license applications can be submitted either      electronically through the National Insurance Producer      Registry (NIPR) or by mailing a paper application to the      Department of Insurance.  License renewals must be submitted      through the NIPR.   4\.   Comprehensive licensing information is available at the      following website: [`https://bit.ly/3QwEovA`](https://bit.ly/3QwEovA)      a.   For a link to the NIPR, click on "Insurance Producer"           then click on "Link to NIPR".      b.   For information specific surplus lines agent licenses and           the paper application, click on "Surplus Lines Agent"           then click on "Surplus Lines Agent Licensing Packet". **Affidavit Requirements** **General Provisions** 1\.   For insureds whose home state is Tennessee, insurance      coverage is not eligible for placement as surplus lines      insurance unless the full amount of coverage required is      not procurable, after a diligent effort has been made to do      so, from authorized insurers in Tennessee.      a.   The amount of insurance eligible for surplus lines is           only the amount in excess of the amount procurable from           authorized insurers.      b.   In order to satisfy the diligent effort standard, a           specified number of authorized insurers that actually           write the type of insurance sought must decline to insure           the risk.      c.   The required number of declinations (either 1 or 3)           depends on the type of insurance sought.  A document           setting out the required number of declinations is available at the following website: [`https://bit.ly/3FHeiQy`](https://bit.ly/3FHeiQy)  Click on "Tennessee Surplus Lines Declination Requirement". 3\.   Within 30 days of the effective date of a new or renewal      policy, or upon the execution of an endorsement on a new or      renewal policy, the surplus lines agent must electronically      file the policy details through the Surplus Lines Information      Portal (SLIP) of the SLAS Clearinghouse.      a.   The surplus lines agent must report the coverage code,           transaction type, effective and expiration dates,           insurer, premium, and policy fees for the policy.      b.   SLIP can be accessed at the following website:           [`https://bit.ly/3FFOX9F`](https://bit.ly/3FFOX9F) 4\.   On a quarterly basis, the surplus lines agent must      electronically submit an affidavit through SLIP attesting that      each policy placed or renewed pursuant to the surplus lines      law, and each policy endorsement, was eligible for such      placement.      a.   The surplus lines agent files a single affidavit to           cover all policies submitted through SLIP during the           preceding calendar quarter.      b.   Affidavits are due as follows:           POLICIES SUBMITTED DURING       AFFIDAVIT DUE DATE           Q1. January 1 - March 31             May 15           Q2. April 1 - June 30               August 15           Q3. July 1 - September 30          November 15           Q4. October 1 - December 31        February 15 5\.   Additional information related to reporting of policy      details and submission of affidavits is available at the      following website:  [`https://bit.ly/3FHeiQy`](https://bit.ly/3FHeiQy)  Click on      "Surplus Lines Filing Procedures". **Fees**  A SLIP transaction fee of 0.175% of gross premiums is owed for all surplus lines policies. REPORTING FORM AND PAYMENT OF TAX Item deleted. 1\.   At the end of each calendar quarter, a surplus lines agent      will receive an invoice in SLIP detailing the taxes and fees      owed for policies reported during the preceding quarter.  The      schedule for surplus lines tax and clearinghouse transaction      fees invoicing is as follows:      FILINGS RECEIVED DURING     INVOICES ISSUED  PAYMENT DUE DATE      Q1. January 1 - March 31         April          May 15      Q2. April 1 - June 30            July           August 15      Q3. July 1- September 30        October         November 15      Q4. October 1- December 31      January         February 15 2\.   Taxes must be paid to the Department via ACH transaction in      SLIP. The SLIP transaction fee can be paid to the SLAS      Clearinghouse either via ACH transaction in SLIP or by check. 3\.   Additional information related to payment of taxes and fees is      available at the following website:  [`https://bit.ly/3FHeiQy`](https://bit.ly/3FHeiQy)      Click on "Surplus Lines Filing Procedures". 10\.  A surplus lines agent that needs to report transactions or      pay taxes on policies effective prior to 10/01/2016 should      email surplus.lines@tn.gov for instructions on filing      procedures.
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categories
Surplus