HRS § 431-8-205 - Insurance independently procured; duty to report and pay tax

(a) Nothing in this part shall prohibit a person from independently procuring, continuing, or renewing insurance from an insurer which is not authorized to transact insurance in this State. (b) Each insured who in this State, before July 1, 2011, procures, continues, or renews surplus lines insurance on a risk located or to be performed in whole in this State, other than insurance procured through a surplus lines broker pursuant to part III of this article shall file within sixty days after the date the insurance was procured, continued, or renewed, a written report with the commissioner. Each insured who in this State, after June 30, 2011, procures, continues, or renews surplus lines insurance for which this State is the home state of the insured, other than insurance procured through a surplus lines broker pursuant to part III of this article shall file within forty-five days after the end of the calendar quarter in which the insurance was procured, continued, or renewed, a written report with the commissioner. The report shall be on forms prescribed by the commissioner, showing: (1) The name and address of the insured or insureds; (2) The name and address of the insurer; (3) The subject of the insurance; (4) A general description of the coverage; (5) The itemized amount of premiums, taxes, and fees currently charged for each state; (6) The policy number, effective date of the policy, and home state of the insured; and (7) Other additional, pertinent information requested by the commissioner. (c) Gross premiums charged for the surplus lines insurance allocable to this State, less any return premiums, are subject to a tax at the rate of 4.68 per cent. At the time of filing the report required in subsection (b) for insurance procured, continued, or renewed before July 1, 2011, the insured shall pay the tax to the commissioner. At the time of filing the report required in subsection (b) for insurance procured, continued, or renewed after June 30, 2011, if this State is the home state of the insured, the insured shall pay the tax and fees of this State and all other states to the director of finance, through the commissioner. If this State is not the home state of the insured, the insured shall pay the tax and fees of this State to the home state of the insured. As used in this subsection, "gross premiums" means the amount of the policy or coverage premium charged by the insurer in consideration for the insurance contract. Any charges for policy, survey, inspection, service, or similar fees or other charges added by the broker shall not be considered part of gross premiums. (d) If an independently procured policy covers risks or exposures only partially located or to be performed in this State, the tax payable shall be computed on the portion of the premium properly attributable to the risks or exposures located or to be performed in this State. (e) Delinquent taxes shall bear interest at the rate of ten per cent per annum. (f) This section does not abrogate or modify, and shall not be construed or deemed to abrogate or modify, any provision of section 431:8-202 or any other provision of this code. (g) This section shall not apply to life insurance, accident and health or sickness insurance, or annuities. [L 1987, c 348, §15; am L 1989, c 195, §21; am L 2003, c 212, §44; am L 2006, c 154, §5; am L 2011, c 68, §7]