Non-admitted and Reinsurance Reform Act (NRRA) premium taxes and payments

NRRA provides that only an insured's home state may require the payment of premium tax for non-admitted insurance:

  • Washington state is the insured's home state if the insured maintains its principal place of business here or, in the case of an individual, the individual's principal residence is here.
  • If Washington state is considered the insured's home state, only Washington state requirements regarding the placement of such business will apply.
  • If 100 percent of the insured risk is located outside of Washington state, then the insured's home state is the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.

As of July 21, 2011, NRRA permits only the insured's home state to require the payment of premium tax for non-admitted insurance. Washington state has not entered into any tax-sharing arrangement with other states. It is the intent of the OIC to issue additional guidance if and when that occurs.

  • Where Washington state is the insured's home state under a surplus line policy, 100 percent of the premium is subject to taxation by Washington state, even though part of the risk is located outside of Washington state.
  • The Washington state tax rate of two percent should be applied to 100 percent of the premium of new and renewal policies with an effective date on or after July 21, 2011, when Washington state is the insured's home state.

If you have any questions or need assistance, please contact:

Kriscinda Hansen, Budget Analyst
Washington State Office of the Insurance Commissioner
Call 360-725-7032
Email Kriscinda with questions regarding premium taxes

Bob Hope, Executive Director
The Surplus Line Association of Washington
Call 206-224-4230
Email Bob with questions regarding policy filings

Mary Tunis, Financial Examiner
Washington State Office of the Insurance Commissioner
Call 360-725-7109
Email Mary with other questions

The Surplus Line Association of Washington
Call 206-623-3326

Updated 07/31/2014

See also

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