Premium Taxes

Foreign Risk Retention Groups are regulated under the Federal Liability Risk Retention Act of 1986 and Chapter 18 of PA 218 of 1956, MCL 500.1801 et seq.

A foreign risk retention group (RRG) does not have a Certificate of Authority issued by the State of Michigan. The RRG is liable for payment of a 2% premium tax on direct business written for a resident risk.  As of July 1, 2012, electronic reporting and payment are to be submitted via the NAIC OPTins.  Registration with OPTins is required prior to utilization of the system; this may take up to two weeks to complete.  To register with OPTins simply click on the “Getting Started” tab in the blue colored menu bar at the top of its Home page.  If there are any questions, please contact the OPTins Help Desk at 816-783-8990 or optinshelp@naic.org.

The electronic report and payment are due within 30 days of the close of each calendar quarter. Additional fees charged to the insured members are not calculated into the premium amount and therefore are not taxed. Late filing may result in a late filing fee.  Notification will be sent at a later date if such regulatory action is determined to be necessary.

DIFS does not have statutory authority to issue a surplus lines tax refund, but credits may be taken for canceled business with supporting documentation.