§ 58-21-85. Surplus lines tax. - North Carolina Statutes

§58‑21‑85.  Surplus lines tax.

(a)        Gross premiumscharged, less any return premiums, for surplus lines insurance are subject to apremium receipts tax of five percent (5%), which shall be collected by thesurplus lines licensee as specified by the Commissioner, in addition to thefull amount of the gross premium charged by the insurer for the insurance.  Thetax on any portion of the premium unearned at termination of insurance havingbeen credited by the State to the licensee shall be returned to the policyholderdirectly by the surplus lines licensee or through the producing broker, ifany.  The surplus lines licensee is prohibited from absorbing such tax and fromrebating for any reason, any part of such tax.

(b)        At the same timethat he files his quarterly report as set forth in G.S. 58‑21‑80,each surplus lines licensee shall pay the premium receipts tax due for theperiod covered by the report.

(c)        This section doesnot apply to risks of State government agencies nor to risks of localgovernment risk pools created and operating under Article 23 of this Chapter.

(d)        The surplus lineslicensee placing the insurance and claiming the exemption in subsection (c) ofthis section shall affirmatively show in writing to the Commissioner that therisk qualifies for the exemption. (1985, c. 688, s. 1; 1985(Reg. Sess., 1986), c. 928, s. 11; 1987, c. 727, ss. 2, 3, c. 864, s. 37.)