New requirement for resident licensees filing taxes on behalf of out of state brokers

Many of our resident members file NC surplus lines taxes on behalf of out - of- state brokers. If you file taxes for of out - of- state brokers, this contains very important information that may change who you can file NC surplus lines taxes on behalf of. Please read very carefully.

“The NCDOI has obtained a legal opinion that says that the Surplus Lines Act requires that a nonresident producer must hold a nonresident North Carolina surplus lines license to place coverage on risks with an approved nonadmitted company in North Carolina. NCDOI will no longer allow resident North Carolina surplus lines licensess to file taxes on behalf of nonresident producers who do not hold a nonresident North Carolina surplus lines license.”

If you are filing NC surplus lines taxes on behalf of out - of- state brokers, it is advisable that you obtain a copy of the nonresident North Carolina surplus lines license. If they do not have one then you will be in violation of the NC Surplus Lines Act if you file taxes on their behalf.

You can advise those out - of- state brokers that the application to apply for a nonresident surplus lines license can be obtained from the association website at http://wwww.ncsla.com.

If you have any questions or need further information, please feel free to call me at 1-800-342-5572 or email at wayne@jsausa.com.

Wayne l. Sumner
President
NCSLA