Within how many days must a surplus lines licensee collect tax on insurance premiums?

A surplus lines licensee is required to collect taxes on insurance premiums within 30 days of the effective date of the policy. This timeframe ensures timely compliance with state regulations regarding the taxation of surplus lines insurance, which is typically non-admitted in the standard market. Collecting the tax within this period helps maintain the integrity of surplus lines insurance and the funding of state insurance programs. Delaying the collection could result in regulatory penalties and complications for both the licensee and the insured party. Understanding this timeline is crucial for all surplus lines licensees to ensure they adhere to legal requirements and promote proper fiscal management within their insurance practices.