Per the Michigan Insurance Code, MCL 500.1951, each Surplus Lines licensee is required to pay taxes and regulatory fees on a semi-annual basis on form FIS 0270 Semi-Annual Report (www.michigan.gov/ofir > Forms > Insurance > Surplus Lines Licensee Tax Forms).  If Michigan is deemed to be the Home State of the insured as defined by the NRRA, 100% of the Surplus Lines tax is to be paid to the State of Michigan. Currently, Michigan does not have online capability to report and submit Surplus Lines premium and taxes.  Courtesy tax filings are not allowed.

The report and payment are due August 15th and February 15th for each previous six-month period.  Therefore, the taxes are due August 15th for policies placed during January through June and the taxes are due February 15th for policies placed during July through December.  The total premiums written on page 1 and page 2 must be correctly calculated and balance.  Michigan’s tax rate is 2.5% of the premium written.  Additional fees charged the insured are not taxed.  A zero report is requested if the licensee has conducted no business during a report period.  Per MCL 500.1952, late filings may be charged a penalty and/or daily interest on the past due amount.

The amount of additional fees that a licensee may charge is statutorily limited and reviewed annually by the Commissioner, and posted on our website by an official Commissioner Bulletin.

OFIR does not have statutory authority to issue a Surplus Lines tax refund, but credits may be taken on the Semi-Annual Report with proper supporting documentation.  Declaration sheets are not required to be submitted with the Semi-Annual Report, however may be requested upon auditing a licensee’s report.

The additional form FIS 0269 Report of Transaction with an Unauthorized Insurer Not Recognized as Eligible is required if business is placed with a Surplus Lines insurer that is not domiciled in a U.S. jurisdiction or on the NAIC Alien Quarterly List.