Tax Rate
4.68%
Filing Frequency
quarterly
Quarterly: May 15 (Q1), August 15 (Q2), November 15 (Q3), February 15 (Q4)
Filing Method
portal
Format: portal_electronic
Requirements
HAWAII SURPLUS LINES REQUIREMENTS:
CRITICAL: Hawaii does NOT maintain an eligible insurer list - broker must verify eligibility
1. FILING METHOD:
- All filings through OPTins portal using Form 104 NRRA
- Portal: https://www.optins.org
- File within 60 days of policy effective date
- Quarterly deadlines: May 15, Aug 15, Nov 15, Feb 15
2. INSURER ELIGIBILITY (BROKER RESPONSIBILITY):
Hawaii does NOT maintain an eligible insurer list
Broker must verify insurer meets eligibility requirements:
Foreign Insurers:
- Must be authorized in state of domicile
- Minimum capital/surplus: $15,000,000
- Verify authorization certificate from domiciliary state
Alien Insurers (Two pathways):
- Option 1: Listed on NAIC IID List (International Insurers Department)
- Option 2: Broker maintains evidence of financial responsibility AND $5.4M US trust fund
3. DILIGENT SEARCH REQUIREMENTS:
- 3 declinations required from authorized insurers
- Document all declination attempts
- Maintain records of diligent search
EXEMPTIONS from diligent search:
- Ocean marine insurance
- Insurance on aircraft (registered outside Hawaii) or aircraft liability/cargo
- Coverage on property wholly outside Hawaii
- Property in interstate or foreign transit
4. TAX OBLIGATIONS:
- Tax rate: 4.68% of gross premium
- Tax is payable by the surplus lines broker (not insured)
- Payment due with quarterly filing
- Submit through OPTins portal
5. POLICY REQUIREMENTS:
- Include required surplus lines disclosure language
- Policy must clearly identify as surplus lines coverage
- Provide disclosure to insured
- Maintain policy records
6. EXEMPTIONS (No filing or tax required):
- Ocean marine insurance
- Wet marine and transportation insurance
- Aircraft insurance (registered outside Hawaii)
- Coverage on property wholly outside Hawaii
- Property in interstate or foreign transit
7. QUARTERLY FILING SCHEDULE:
- Q1 (Jan-Mar): Due May 15
- Q2 (Apr-Jun): Due August 15
- Q3 (Jul-Sep): Due November 15
- Q4 (Oct-Dec): Due February 15
File all policies within 60 days of effective date
Filing Steps
- 1CRITICAL: Broker must independently verify insurer eligibility - no state list provided
- 2Verify foreign insurers are authorized in domicile with $15M+ capital/surplus
- 3Verify alien insurers are on NAIC IID List OR have $5.4M trust fund evidence
- 4Tax responsibility is on the broker, not the insured
- 5File through OPTins portal within 60 days of policy effective date
- 6Obtain 3 declinations unless coverage is exempt (ocean marine, aircraft, etc.)
- 7Include required surplus lines disclosure language in all policies
- 8Submit quarterly filings by deadline: May 15, Aug 15, Nov 15, Feb 15
Required Forms
- Form 104 NRRA (filed through OPTins portal)
- Insurer eligibility documentation
- Diligent search documentation (3 declinations unless exempt)
Common Issues to Avoid
- Failing to verify insurer eligibility before binding coverage
- Not documenting diligent search (3 declinations required)
- Missing or incorrect Form 104 NRRA submission
- Late filing (must file within 60 days)
- Forgetting tax payment is broker responsibility
- Not claiming exemption when applicable (ocean marine, aircraft)
- Missing required policy disclosure language
- Incorrect quarterly deadline tracking
Helpful Tips
- Maintain a checklist for insurer eligibility verification
- Set up OPTins portal access well in advance
- Keep copies of domiciliary state certificates of authority
- Track NAIC IID List for alien insurers quarterly
- Document all diligent search attempts thoroughly
- Set calendar reminders for quarterly deadlines
- Use standard disclosure language template
- Remember: broker pays tax, not insured
- Check exemptions before conducting diligent search
- File within 60 days to avoid penalties
Important Notes
Hawaii unique considerations:
- No state-maintained eligible insurer list (broker determines eligibility)
- Tax paid by broker, not insured
- Alien insurers have two pathways for eligibility
- Significant exemptions for ocean marine and aircraft
- File within 60 days of policy effective date
- Quarterly filing through OPTins portal
Frequently Asked Questions
What is the surplus lines tax rate in Hawaii?
The surplus lines tax rate in Hawaii is 4.68%.
When is surplus lines tax due in Hawaii?
Quarterly: May 15 (Q1), August 15 (Q2), November 15 (Q3), February 15 (Q4)
How do I submit surplus lines filings in Hawaii?
portal