§ 5035 - Surplus lines tax - Vermont Statutes

§ 5035. Surplus lines tax

(a) Gross premiums charged, less any return premiums, for surplus lines coverages placed with nonadmitted 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.

(b) At the time of filing his or her quarterly report with 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.)