Substitute Bill No. 1217 Summary

• Exempts nonadmitted insurance procured, continued or renewed on or after July 1, 2011 from the existing 4% premium receipts tax and reporting requirements in Section 38a-277, replacing them with new tax provisions.

• Establishes a new 4% tax on independently procured insurance where Connecticut is the insured's home state, with quarterly payment deadlines starting November 15, 2011, then transitioning to quarterly payments due May 15, August 15, November 15, and February 15 for calendar years beginning January 1, 2012.

• Creates identical 4% tax on nonadmitted insurance procured through surplus lines brokers on or after July 1, 2011, with the same payment schedule and timing requirements.

• Authorizes the Commissioner of Revenue Services and Insurance Commissioner to enter into cooperative, reciprocal, or multistate agreements to allocate nonadmitted insurance taxes among states based on standardized premium allocations, including the National Association of Insurance Commissioners' Nonadmitted Insurance Multistate Agreement.

• Imposes 10% penalty and 1% monthly interest on unpaid taxes, with Commissioner discretion to waive penalties for reasonable cause; allows cross-state disclosure of return information and premium data necessary for tax administration under cooperative agreements.