The Surplus Lines Section is responsible for the regulation of surplus lines brokers, including all reporting and compliance, along with the collection of surplus lines premium tax revenue. Refer to Title 18, Delaware Insurance Code Chapter 19 for details of Surplus Lines regulation.
Effective January 1, 2018, the use of OPTins became mandatory for the filing of all surplus lines broker reports, forms, and payments. Paper or emailed forms will not be accepted, and will be returned to sender. Click here to see Surplus Lines Bulletin No. 21 for more information regarding mandatory use of OPTins.
Please note: There is a registration process to obtain an OPTins user ID and password, which could take 2 weeks or more to complete, therefore, industry users are advised to begin the set up process soon, at least 30 days prior to the tax due date. Each surplus lines broker must set up an individual account. Detailed registration information is available on the OPTins website, https://login.optins.org, or through the OPTins Marketing Team at 816-783-8787 or OPTinsMktg@naic.org.
IMPORTANT : BUSINESS ENTITIES SHOULD NOT SUBMIT TAX REPORTS.
Only individual surplus lines brokers can transact business, therefore, tax reports should only be submitted by or on behalf of individual surplus lines brokers. It is imperative that the individual surplus lines broker licensee’s Delaware license number be used to set up OPTins accounts, and then accurately entered on each form in order for the tax to be credited properly. DO NOT set up the OPTins account using an Agency ID. The Department has two OPTins accounts, one for surplus lines and one for insurance company premium taxes. Be sure the user is set up in the Surplus Lines Account and not set up in the Insurance Company Premium Taxes Account.
The following forms are available for electronic filing through the OPTins system. Paper reports will not be accepted and will be returned to sender. Late filing of returned paper forms may result in assessment of penalties against the reporting surplus lines broker.
FORM SL-1925-A: CY 2019 Brokers Annual Premium Tax Summary Report due on or before March 1, 2020.
THIS ANNUAL REPORT MUST BE FILED BY ALL INDIVIDUAL SURPLUS LINES BROKER LICENSEES. ANNUAL REPORTS ARE ALWAYS REQUIRED FROM EACH INDIVIDUAL, EVEN IF NO BUSINESS WAS WRITTEN DURING THE CALENDAR YEAR.
FORM SL-1925-Q: 2020 Quarterly Premium Tax Reports due during CY 2020
IMPORTANT: Zero quarterly reports are not required.
FORM SL-1903-MS (Multi-State) – Use this form to report multi-state policies ONLY.
Attach one copy of this form for each multi-state policy written in a calendar quarter to the appropriate quarterly tax report. Use the SL-1905 form described below to report single-state (Delaware only) policies.
FORM SL-1905 referred to a “Bi-weekly Form” in OPTins – Notice of Insurance Transaction (to be used on an occurrence basis; due within 30 days of the policy effective date.)
The SL-1905 form is an Excel form that is set up to report as many policies as necessary at one time. Once you fill in the information for the first policy, click UPDATE then RESET (you only need to click PRINT if you want a paper copy for your files.) When you click RESET the program clears the policy information and puts you back at the top of the form ready to start entering information for the next policy. Keep entering and clicking UPDATE and RESET until you have entered all the policies to be reported. After you click RESET on the last policy, save the file and submit in OPTins.
★ PLEASE NOTE ★
By calendar year-end each year, the Delaware Department of Insurance should receive and have on record either a Surplus Lines Notice of Insurance Transaction (SL-1905) or a Report of Multi-State Surplus Lines Transaction (SL-1903-MS) for every surplus lines policy transaction made by a surplus lines licensee with regard to insurance risks for which Delaware is the home state of the insured. This includes, but is not limited to, every new policy, renewals, endorsement, audit finding, cancellation and return premium action, etc. Failure to submit these filings may subject the licensee to penalties.
Self-Procured Insurance – Independent Procurement Premium Tax Report due within 30 days after the effective date of policy. Here are the 2022 Tax Form and 2023 Tax Form. Please note: This is a paper form and should be mailed with a check for tax payment to the address printed on the form..
If Delaware is the home state of the insured, and if any part of the risk exposure is located within Delaware, this report must be completed and submitted by the insured for any insurance purchased from a non-admitted insurer without the involvement of a surplus lines broker, and tax of 3% must be paid to Delaware on the entire policy premium.
Form SL-1914 – Exempt Commercial Purchaser Application. Must be signed by Surplus Lines Broker and Applicant. Keep this signed form with the records for the policy to which it pertains. DO NOT submit this form to the Department. See Surplus Lines Bulletin #19 AMENDED.
Form SL-1917 – Surplus Lines Broker Notice to Insured. Must be signed by Surplus Lines Broker and Applicant. Keep this signed form with the records for the policy to which it pertains. DO NOT submit this form to the Department. See Surplus Lines Bulletin #19 AMENDED.
Form SL-1923 – Statement of Diligent Effort. Updated January 2016 to remove notary signature requirement, see Surplus Lines Bulletin # 18. Retain this completed form in the surplus lines broker’s office with other policy materials. DO NOT submit this form to the Department.
Prior Year Surplus Lines Broker Tax Filing Forms
Amendments – Click here to obtain prior year tax forms.
Eligible Non-admitted Surplus Lines Companies
Since passage of the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), the Delaware Department of Insurance no longer determines whether or not a non-admitted insurer is eligible-and does not “approve”-surplus lines insurers to transact business in Delaware. For years, the Department published Surplus Lines Bulletin No. 5, the Listing of Eligible Surplus Lines Insurers. The publication and use of this listing is no longer mandatory, and no specific list will be published by the Department.
Foreign (U.S.) Surplus Lines Insurers Under the mandates of the NRRA, any insurer domiciled in a U. S. jurisdiction (also referred to as “foreign surplus lines insurer”) is considered eligible to transact surplus lines business in any state if that non-admitted insurer maintains capital and surplus of at least $15 million or the minimum capital and surplus requirements under the law of the insured’s home state, whichever is greater.
Click here to look up the eligibility status of a Foreign Surplus Lines Insurer through the NAIC.
Alien (non-U.S.) Surplus Lines Insurers Under the mandates of the NRRA, if a non-admitted insurer domiciled outside the United States (referred to as “alien surplus lines insurer”) is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC, that insurer is considered eligible to transact surplus lines business in any state.
Click here to look up the eligibility status of an Alien Surplus Lines Insurer through the NAIC.
Delaware Domestic Surplus Lines Insurers (DSLI) This type of insurer differs from others in that these Delaware-domiciled insurers are treated as non-admitted in Delaware for particular business purposes. Although a Delaware DSLI is an admitted company, each Delaware DSLI is limited to writing surplus lines insurance only. A company that is licensed as a Delaware DSLI meets all eligibility criteria under the NRRA and may write surplus lines insurance business in any jurisdiction, including Delaware.
Delaware Domestic Surplus Lines are included on the Active Companies list.
★ IMPORTANT ★
It is the surplus lines broker’s responsibility to ascertain a non-admitted insurer’s eligibility status before placing business with that company.
(per 18 Del. C. § 1913)
If you have further questions about a specific non-admitted company,
check with the regulatory authority in insurer’s state of domicile.
Questions should be directed via email to: DOI_SLTAX@delaware.gov.
Related Topics: brokers, Department of Insurance, DOI, insurance, Insurance Commissioner, OPTins, Premium Tax Section, surplus lines, surplus lines brokers