Premium Tax, Stamping, and Reporting/Filing Requirements
How the tax works
Indiana imposes a surplus lines premium tax on the gross premium written by non-admitted insurers for Indiana risks. The producer collects the tax from the insured at placement and remits it with the required return; the obligation is not discharged by the insurer's own state taxes, and it is not excused if the insured fails to pay. Tax applies to endorsements and additional premium as well as the original policy, and cancellation refunds follow the earned premium actually retained. Confirm the current rate and any separate stamping-office fee in DOI guidance before computing a number.
Stamping and filing
Indiana uses a designated stamping/reporting agent to receive surplus lines policy data, and the producer files the required information (insured, insurer, eligibility basis, coverage, premium, tax, diligent search or export-list reference) within the deadlines set by statute and rule - typically monthly or quarterly, keyed to the policy effective date. Late filings and underpayments draw interest and penalties.
Multistate risks
The NRRA home-state rule means one state taxes the whole risk: if Indiana is the insured's home state, Indiana tax applies to the entire premium, and the producer should not split tax among states. Where another state is the home state, follow that state's allocation rules.
Traps
Taxing net rather than gross premium; omitting tax on mid-term endorsements; assuming a zero-premium month needs no report (file the zero report); believing the surplus lines insurer's domiciliary taxes satisfy Indiana; ignoring the filing deadline because the tax was paid.
Worked example
$100,000 gross premium, then a $20,000 mid-term endorsement: tax is computed on $120,000 of gross premium. A $30,000 unearned cancellation reduces taxable premium only by the returned premium, not by the original figure, and the correction is reported on the next filing.