SB1004 Summary

• Amends reporting requirements for surplus lines brokers by changing insured address format from full "address" to "city, state and zip code" only in reports filed with the director.

• Allows the director to require surplus lines brokers to submit reports and payments electronically through approved third-party services, with a December 31, 2019 effective date for this requirement.

• Modifies civil penalties for late surplus lines tax payments from "up to $25 per day" to "not more than $25 per day," and adds exception that no penalty accrues for late payments caused by third-party service delays.

• Clarifies that failure to remit surplus lines tax makes the broker liable for civil penalties, and changes the director's authority from "shall" (mandatory) to "may" (discretionary) regarding collection by distraint and recovery of penalties.

• Requires surplus lines brokers to maintain compliance evidence for non-recognized surplus line coverage for the duration of the policy plus six years after expiration.