I have a publication that says that wet marine and transportation is exempt from the Surplus Lines Law. Does that mean that I don’t have to pay premium tax on wet marine premiums?
No, that is not exactly what is meant. Chapter 19, the Surplus Lines Law, sets forth the conditions under which business may be written with a company that is not authorized in Delaware. 18 Del. C., § 1902 states that the Surplus Lines Law does not apply to certain types of coverage – including wet marine. If the Surplus Lines Law does not apply, the conditions for export to a nonadmitted company do not apply, and the business can not be exported to surplus lines. The business must be placed with an admitted company. Tax on admitted business is paid by the insurer.
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