Tax Rate
4.00%
Filing Frequency
Annual
January 31 (annually for preceding calendar year)
Filing Method
portal
Format: Electronic - NAIC OPTins System
Requirements
Massachusetts requires electronic filing via NAIC OPTins system ONLY (no paper filings). Annual filing deadline: January 31. Annual filing fee: $150 (due March 1). Zero filing required even with no business ($1.00 fee). Form BR-7 affidavit signed by insured and broker required for each policy. Diligent search requirement waived for commercial policyholders. Foreign insurers: $20M capital/surplus (waivable to $4.5M). Alien insurers must be on NAIC Quarterly Listing. No domestic surplus lines insurers permitted.
Filing Steps
- 1Register for NAIC OPTins account at www.optins.org at least 60 days before January deadline
- 2Contact OPTins Marketing Team at [email protected] or 816-783-8787 for registration assistance
- 3Complete Form BR-7 affidavit for each policy with insured and broker signatures
- 4Use most updated Massachusetts tax forms available on OPTins at time of filing
- 5Submit payment via ACH debit (releases with filing) or ACH credit (filing submitted when payment received)
- 6File zero return if no business transacted during calendar year (still required, $1.00 fee)
- 7Ensure insured signs acknowledgment that coverage not protected by MA guaranty fund
- 8Ocean marine coverage does not require surplus lines broker license or surplus lines tax
- 9Verify insurer appears on Massachusetts eligible insurer list before placement
- 10Annual filing covers calendar year business (January 1 - December 31)
Required Forms
- NAIC OPTins annual tax report
- Form BR-7 affidavit (for each policy)
- CPA audited financial report (insurers)
Common Issues to Avoid
- Late OPTins registration - system access can take 2 weeks, register early
- Missing Form BR-7 affidavit or incomplete signatures
- Forgetting to file zero return when no business transacted
- Attempting paper filing when only electronic filing accepted
- Placing coverage with ineligible insurer not on Massachusetts approved list
- Missing ACH payment or using incorrect payment method
- Using outdated tax forms instead of current year OPTins forms
- Not submitting payment in time for January 31 deadline (ACH credit users)
- Confusion about diligent search - requirement waived for commercial purchasers
- Attempting to place prohibited coverage types (workers comp, compulsory auto, etc.)
Helpful Tips
- Register for OPTins by November to ensure system access before busy January deadline
- Create Form BR-7 affidavit template to streamline policy processing
- Use ACH debit for faster filing - payment releases with submission
- Keep copy of eligible insurer list for quick reference during placement
- Set calendar reminder for December to prepare annual filing
- Verify all insurers on your business list are MA eligible before filing
- Remember: even zero business years require filing ($1.00 fee)
- Ocean marine business does not count toward surplus lines filing
- Commercial purchaser exemptions eliminate diligent search documentation burden
- Contact Surplus Lines Audit Section early if questions - they prefer proactive outreach
Important Notes
Tax Rate: 4% (payable by broker). No stamping fee. Annual filing only. OPTins registration can take 2+ weeks - register early. Form BR-7 affidavit informs insured that insurer is not MA licensed and losses not covered by guaranty fund. Ocean marine coverage exempt from surplus lines regulation and tax. Both MA diligent search exemption and NRRA exemption apply. Eligible insurer list maintained but no export list. Prohibited: accident/health, workers comp, compulsory auto liability, life insurance.
Frequently Asked Questions
What is the surplus lines tax rate in Massachusetts?
The surplus lines tax rate in Massachusetts is 4.00%.
When is surplus lines tax due in Massachusetts?
January 31 (annually for preceding calendar year)
How do I submit surplus lines filings in Massachusetts?
portal