What is Surplus Line Tax and why do I
have to pay it?
Surplus Line Tax is charged on all surplus line insurance transactions
in the State of Illinois by authority of Section 445 of the Illinois
Insurance Code (215 ILCS 5/445). The surplus line producer is required by
law to remit this tax to the state on all insurance contracts written
under his or her license. The law also permits the producer to collect
this tax from the insured. For a definition of surplus line insurance, click
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.