FILING Review

Related Information

Examination

The objective of Examination is to help licensees submit accurate information by examining individual filings or reports for content and omission errors and communicate discrepancies back to the submitting licensee. Examination includes:

  • New Licensees: Review filings, endorsements, 1620 Monthly Reports, and RCT-123 Annual Tax Reports submitted by new licensees to ensure the licensee is submitting accurate information consistent with Surplus Lines Law and PSLA Procedures.
  • Tax Exempt Filings: Review tax exempt filings to ensure they comply with the Pennsylvania Department of Revenue guidelines. The following is an excerpt from the Department of Revenue’s website on Corporate Taxes and Surplus Lines Agents.
    • “Special Bulletin” issued Nov. 8, 2004, by the PA Surplus Lines Association informed surplus lines licensees that unincorporated charitable, religious or educational organizations are not exempt from the surplus lines premium tax under current law.
    • Current statute does not provide an exemption for ANY organizations. The Pennsylvania Department of Revenue has determined that the ONLY entities that are exempt from the Surplus Lines Tax are political subdivisions (counties, municipalities, school districts, authorities, etc.)
  • 1609-B Filings: Review 1609-B filings to ensure they comply with Surplus Lines Law Section 1609 (b).
    • Subsection (a) shall not apply to any insurance which has been placed continuously with an eligible surplus lines insurer for a period of at least three (3) consecutive years immediately preceding the current placement. However, within forty-five (45) days after insurance has been placed with an eligible surplus lines insurer, the surplus lines licensee shall file with the department his written declaration on a form prescribed by the department.
  • 1610-A Filings: Review 1610-A filings to validate they comply with Surplus Lines Law Section 1610-A.
    • The diligent search requirements of section 1604(2), the reporting requirements of section 1609(a) and the twenty-five per centum (25%) limitation of section 1606 are not applicable to placements of insurance with non-admitted insurers for risks of an insured which meets at least three of the following requirements:
      (1) The insured employs a full-time risk manager or contracts for services from a qualified risk management service.
      (2) The insured has gross sales in excess of one hundred million ($100,000,000) dollars.
      (3) The insured regularly employs in excess of two hundred fifty (250) full-time employees.
      (4) The insured has assets in excess of one hundred million ($100,000,000) dollars.
      (5) The insured has insurance premiums for property and casualty insurance, excluding employe benefits, in excess of two hundred fifty thousand ($250,000) dollars.
      (6) The insured is seeking insurance for risks resident, located or to be performed in one or more states other than this Commonwealth and the portion of the total risk ascribable to states other than this Commonwealth exceeds fifty per centum (50%).