12B-8.006. State Fire Marshal Regulatory Assessment and Surcharge; Levy and Amount

(1)(a)1.a. In addition to any other license or excise tax, a regulatory assessment is assessed and imposed upon every domestic, foreign, and alien insurer authorized to issue policies of fire insurance in Florida.

b. The assessment is at the rate of 1 percent of the gross amount of premiums collected by each such insurer on policies of fire insurance issued by it and insuring property in Florida, unless the regulatory assessment is amended by the Office of Insurance Regulation, as set forth in Section 624.517, F.S.

2.a. Each insurer authorized to transact insurance business in Florida is required to remit a .1 percent surcharge on all gross direct fire, allied lines, and multiperil insurance premiums written on commercial property located within Florida.

b. To calculate the surcharge to be remitted, each insurer should use the premium amounts reported on the “Exhibit of Premiums and Losses,” page 14, of the annual statement. The surcharge is applicable to said policies issued or renewed on or after July 1, 1992. On or before March 1, an annual return is required to be filed with the Department of Revenue showing the gross amount of premiums collected for the preceding year and the amount of assessment and surcharge imposed, and payment is required to be made at the time the taxpayer files his annual return. No credits shall be allowed against the tax imposed upon fire insurance assessments.

(b) The gross amount of receipts subject to tax under the provisions of paragraph (1)(a) do not include amounts sufficient to recoup any assessments that have been paid by the insurer to defray deficits of a joint underwriting association or assigned risk plan under Sections 627.311 and 627.351, F.S., net of any earnings returned to the insurer by the association or plan. This recoupment provision is only applicable to insurers whose rates are filed with the Office of Insurance Regulation under Section 627.062, 627.0651 or 627.072, F.S.

(2) “Fire insurance” includes insurance of structures or other property at fixed locations against loss or damage to such structures or other described properties from the risks of fire and lightning. “Multiperil insurance” means a combination or package policy which includes both property and casualty coverage for a single premium.

(3) For purposes of the regulatory assessment, every insurer issuing policies of insurance covering the peril of fire on properties located in this State shall determine the gross amount of premium applicable to the peril of fire by multiplying the premium amounts reported on the “Exhibit of Premiums and Losses,” Annual Statement, as follows:

(a) Fire, Line 1 – ninety-three percent (93%).

(b) Allied Lines, Line 2.1 – five percent (5%).

(c) Multiple Peril Crop, Line 2.2 – zero percent (0%).

(d) Farmowners multiple peril, Line 3 – fifteen percent (15%).

(e) Homeowners multiple peril, Line 4 – twenty-five percent (25%).

(f) Commercial multiple peril, Lines 5.1 and 5.2 – fifteen percent (15%).

(g) Ocean Marine, Line 8 – ten percent (10%).

(h) Inland Marine, Line 9 – twelve percent (12%).

(i) Earthquake, Line 12 – 5 percent (5%).

(j) All other fire premiums – as supported by insurer’s verifiable documentation.

(k) Despite other provisions of this subsection, where the books and records of the insurer can clearly show without exception a lesser percentage, the insurer may apply the lesser percentage.

(4) For purposes of the surcharge, the surcharge factor of .001 should be applied to the amounts reported on the “Exhibit of Premiums and Losses”, page 14 of the annual statement, column 2, Direct Premiums Written, for the following line items:

(a) Fire, Line 1.

(b) Allied lines, Line 2.1.

(c) Multiple peril crop, Line 2.2.

(d) Farmowners multiple peril, Line 3.

(e) Commercial multiple peril, Line 5.

Rulemaking Authority 213.06(1) FS. Law Implemented 213.05, 624.509, 624.510, 624.511, 624.515, 624.516 FS. History–New 2-3-80, Formerly 12B-8.06, Amended 4-10-91, 2-18-93, 12-9-97, 7-31-03, 12-25-08, 1-25-12.