Surplus Line Insurance Market Scores Major Victory in California Ruling

A California superior court has determined that the state's insurance premiums tax applies only to insurers admitted to do business in the state and does not apply to surplus line insurers. According to the Surplus Line Association of California, surplus line insurers are taxed under a separate regulatory framework and a contrary finding by the court would have had a chilling effect on the attraction of capital from and access to the surplus line market.