Under O.C.G.A. §§ 33-5-31 and 33-5-33, what surplus lines premium tax rate does Georgia impose on independently procured and broker-placed surplus lines coverage?

Why this is the answer

O.C.G.A. § 33-5-31 imposes a 4% premium tax on surplus lines insurance placed by a Georgia-licensed surplus lines broker when Georgia is the insured's home state under the federal Nonadmitted and Reinsurance Reform Act (NRRA). The broker collects the tax from the insured and remits it to OCISF, along with a quarterly affidavit. The tax applies to premiums less return premiums and exclusive of sums collected to cover state or federal taxes; an insured who procures coverage directly from an unauthorized insurer pays the same 4 percent under § 33-5-33. Unlike admitted-market premium tax, the surplus lines tax is a transactional levy.