Louisiana Cuts Surplus Lines Tax Rate

Louisiana’s legislature recently enacted House Bill 259, which cuts the surplus lines tax rate from 5 percent to 4.85 percent. The law, which also eliminates the insurance commissioner’s authority to enter into the Nonadmitted Insurance Multi-State Agreement (NIMA) or other cooperative compacts or agreements with other states, was approved by the governor on July 1, 2015 and becomes effective on October 1, 2015.