Tax Rate
4.00%
Filing Frequency
quarterly
Quarterly filings due 60 days after quarter end: • Q1 (Jan-Mar): Due June 1 • Q2 (Apr-Jun): Due August 31 • Q3 (Jul-Sep): Due November 30 • Q4 (Oct-Dec): Due March 1 (next year) Annual filing (SL-4) due March 1
Filing Method
portal
Format: OPTins electronic format
Requirements
• Policy number
• Premium amount
• Percentage of Risk in Arkansas
• Tax Calculation • Use of OptIns is mandatory to file and pay your surplus lines tax on-line. • Insurer must be authorized to write in its domiciliary jurisdiction, and have Capital and Surplus or its equivalent under the laws of its domiciliary jurisdiction, which equals the greater of the minimum capital and surplus requirement under the law of its home state, or $15,000,000.
• To be added to our list of eligible surplus lines insurers we ask that you provide the following:
• Notice of Intent Letter addressed to the Commissioner
• Certificate of Compliance from the surplus line insurer’s state of domicile.
• Copy of most recent financial statement filed with its state of domicile.
• Completed Uniform Consent to Service of Process Form (UCAA Form 12)
Filing Methods
- OPTins Portal (Mandatory)
Filing Steps
- 1OPTins filing mandatory since January 2020
- 2Zero quarterly filings not required, but annual zero filings are mandatory
- 3Affidavits must be signed by Arkansas-licensed surplus lines broker
- 4Diligent effort: Admitted quote must be 20% or higher to decline
- 5Required disclosure on all policies about guaranty association exclusion
- 6Lloyd's syndicates all eligible per NAIC Quarterly List
Required Forms
- SL-2 Quarterly Statement
- SL-2A Policy Detail
- SL-3 Affidavit
- SL-4 Annual Statement
- SL-4 Affidavit
Important Notes
**TAX RATE:** 4% of gross premium and fees
**FILING SYSTEM:** OPTins mandatory since January 2020 (Bulletin 15-2019)
**QUARTERLY DEADLINES:** 60 days after quarter end
• Q1: Due June 1
• Q2: Due August 31
• Q3: Due November 30
• Q4: Due March 1 (next year)
**ANNUAL FILING:** SL-4 due March 1 (required even with zero business)
**LATE PENALTY:** $50 per day of delinquency starting 61st day after quarter end
**SURPLUS LINES ASSOCIATION:** Yes (Arkansas has an association)
**DILIGENT EFFORT:** Must show admitted insurers declined or quoted 20%+ higher premium
**ELIGIBLE INSURERS:**
• Foreign: $15M minimum capital/surplus
• Alien: Must appear on NAIC Quarterly List
• Eligible list: https://sbs.naic.org/solar-external-lookup/
**REQUIRED DISCLOSURE:** All policies must contain conspicuous statement that coverage is not subject to Arkansas Property and Casualty Guaranty Act protection and is taxed at 4%
**COVERAGE EXEMPTIONS:**
• Wet marine and foreign trade insurance
• Subjects located wholly outside Arkansas
• Railroad property/operations in interstate commerce
• Aircraft (manufacturers, scheduled interstate flight, cargo)
• Transportation cargo through Arkansas
**FEBRUARY 2025 UPDATE:** SB 76 - 20% aggregate fee limit does not apply when licensed agent/broker refers risk to surplus lines broker
**NO STAMPING FEE**
**FORMS:** SL-2/SL-2A (quarterly), SL-3 (affidavit), SL-4/SL-4 Affidavit (annual)
**CONTACT:**
Phone: 501-371-2606
Email: [email protected]
OPTins Technical Support: 816-783-8990 or [email protected]
Frequently Asked Questions
What is the surplus lines tax rate in Arkansas?
The surplus lines tax rate in Arkansas is 4.00%.
When is surplus lines tax due in Arkansas?
Quarterly filings due 60 days after quarter end: • Q1 (Jan-Mar): Due June 1 • Q2 (Apr-Jun): Due August 31 • Q3 (Jul-Sep): Due November 30 • Q4 (Oct-Dec): Due March 1 (next year) Annual filing (SL-4) due March 1
How do I submit surplus lines filings in Arkansas?
portal