I am an Illinois surplus line
producer and my client, the insured, is a governmental entity. Do they
have to pay surplus line taxes and fees?
There are no exemptions for any governmental entities from the surplus line
taxes and fees anywhere in the surplus line laws or regulations*.
Remember, surplus line taxes and fees are not, technically, levied
upon the insured. They are levied upon you, the surplus line producer.
You are permitted, but not required, to pass these costs on to the
* There are, however, certain statutorily
exempt classes including interstate railroads, interstate
aircraft and wet marine policies. See our
The materials and information contained herein are only synopses of laws,
regulations and other information and do not constitute legal advice. It is
recommended that you consult your legal advisers regarding application of
state and federal laws and regulations to any particular situation. The
Surplus Line Association does not undertake and hereby disclaims any
obligation to advise you of any change to laws and
regulations or the procedures of the Surplus Line Association.