Procedures FAQs

Policy filings are due within 30 days of binding. (North Carolina General Statute §58-21-35)

Policies should be filed when written and not on a quarterly basis.

The North Carolina surplus lines tax is five percent (5%) on all transactions.

The North Carolina surplus lines stamping fee is three-tenths of one percent (0.3%) on all transactions with a policy inception date of 01/01/2023 or later. This fee will apply to all premiums, company (insurer) imposed fees, and all endorsements entered in SLIP.

Yes, company fees are taxable. Company fees are those charged by the insurer. Any fees charged by the surplus lines licensee are not subject to the North Carolina surplus lines tax or the North Carolina stamping fee.

North Carolina does not require any quarterly or annual filing reports for surplus lines policies.

Zero premium reports are not required if there are no filings in SLIP.

Risk Purchasing Groups and Independent Procurement filings are to be filed directly with the NCDOI as they have historically been filed. These cannot be entered in SLIP.

For questions regarding Risk Purchasing Groups and Independent Procurement, please contact the NCDOI – Property and Casualty Division.

No. North Carolina surplus lines licensees are prohibited from doing “Courtesy Filings” for any agent who does not have a North Carolina surplus lines license and is directly involved in the procurement of a surplus lines policy in North Carolina.

Any person who is directly involved with procuring surplus lines policies in North Carolina must have a North Carolina surplus lines license. North Carolina General Statute §58-21-65(a)

All tax-exempt filings are to be entered in SLIP but will not receive an approval until the NCDOI has been notified of such filing and has approved the tax-exempt status for such risk.

1. File the policy in SLIP with a nontaxable tax status. SLIP will mark this as a Transaction in Question.
2. The NCSLA will ask for supporting documentation to present to the NCDOI for a decision on the tax status.
3. The NCDOI will review each policy on a case by case basis for tax-exempt approval.

Yes. All tax-exempt filings are subject to the surplus lines stamping fee, except for North Carolina state owned property.

Three years from the expiration date of the policy.

G.S. 58-21-90 (under the NC Surplus Lines Act) provides that all provisions of Chapter 105 (under Revenue) apply in regard to administration, auditing, making returns, the imposition and collection of tax, and the lien thereon, assessments, refunds, and penalties, etc. In other words, NCDOI defers to the statutory provisions in Chapter 105 for the referenced items.

G.S. 58-105-241.6 establishes the statute of limitations for refunds. NCDOI has long held that the maximum number of years for surplus lines tax overpayments is 3 years as per the provisions in the aforementioned statute.

On the first business day following the end of each calendar quarter (March 31, June 30, September 30, December 31), two separate invoices, one for the surplus lines tax and one for the stamping fee, will be available in SLIP for review and payment. Filers will also receive a billing report in SLIP that contains the transactions included in the tax and stamping fee invoices.