LA| Louisiana Insurance Commissioner’s January 17, 2025, Advisory Letter 2025-01 provides guidance on the application of taxes on policy fees for surplus lines insurance policies.
The key points of the letter are:
- All fees or charges for insurance or its procurement are considered premium and subject to premium tax, unless specifically exempted by statute.
- The full and accurate dollar amount of the premium, including all fees and charges, must be disclosed on insurance quotes and policies.
- Insurers and producers must clearly describe and itemize all fees and charges in both quotes and policies delivered to the insured.
- The letter emphasizes that omitting any fees or charges from either the quote or the policy is prohibited, as these are independent requirements under Louisiana law.
