12B-8.0012. Insurance Policy Surcharge; Rate and Computation

(1) Every insurer must collect a surcharge of $2 and $4 from the policyholders of certain types of property insurance issued or renewed.

(2) The $2 surcharge applies to each residential dwelling fire policy, homeowner’s, mobile homeowner’s, tenant homeowner’s, condominium unit owner’s, and any other type of insurance coverage on residential property.

(3) The $4 surcharge applies to each commercial fire, commercial multiple peril, and business owner’s property insurance policy, including marine policies if the coverage includes real property.

(4) The surcharge does not apply to policies on tangible personal property, except multiple peril type policies on residential or commercial property and mobile homes.

(5) For purposes of this rule, the date of issue or renewal shall be the effective date of the policy.

(6) The surcharge applies to all policies issued or renewed even if they are subsequently cancelled. However, if the policy is cancelled back to the effective date, the surcharge shall not apply.

(7) The surcharge must be collected by the insurer from the policyholder and must be remitted in the same manner as the insurance premium tax to the Department of Revenue on Form DR-907, Insurance Premium Tax Quarterly Return, and on Form DR-908, Insurance Premium Tax Return (incorporated by reference in Rule 12B-8.003, F.A.C.).

(8) The surcharge is required to be remitted on the required return for the calendar quarter the policy is issued or renewed without regard to the collection of the surcharge from the policyholders.

(9) The insurer is responsible for collecting the surcharge and may cancel the policy for non-payment of the surcharge.

(10) A separate line denoting the surcharge is provided on Form DR-907 and Form DR-908.

(11) The estimated payment must be based on at least 90% of the actual number of policies subject to the surcharge to avoid penalty and interest as provided in Section 624.5092, F.S.

(12) Penalty and interest may be compromised as provided in Section 213.21, F.S.

(13) The surcharge is not considered to be a part of the premium charge, and is therefore not subject to the insurance premium tax.

(14) The surcharge is imposed on the policyholder and will not be considered for retaliatory tax purposes whether or not the surcharge is collected from the policyholder.

Rulemaking Authority 213.06(1) FS. Law Implemented 624.5092 FS. History–New 6-16-94, Amended 6-20-06, 1-25-12.