What is the primary function of the Surplus Lines Licensee's Tax Report?

The primary function of the Surplus Lines Licensee's Tax Report is to comply with tax reporting requirements. This report is mandated by state regulations and ensures that surplus lines insurers are accurately reporting the premium taxes owed to the state. Surplus lines insurance refers to policies that are placed with non-admitted insurers, often because the coverage is not available through licensed carriers in the state.

Fulfilling tax obligations is crucial not only for the functioning of state insurance programs but also for maintaining regulatory compliance by the surplus lines licensee. The tax report details the premiums collected and helps the state monitor the surplus lines market. This mechanism ensures that the state receives appropriate funding based on the activity occurring within this sector of the insurance industry.