Good News if you have a “Surplus Lines” Policy

As you know from reading my writing – I am not a fan of government.

This “Financial Reform” bill is a mess – it slams banks and credit unions and will have the effect of making loans extremely difficult to get. It is an over-reaction to the willy-nilly “Boom” of the 1990’s.

One thing they did get right was regulation of Surplus lines fees and taxes. Some states (Including CA) used to make people pay twice on Surplus lines taxes.

Now – if you have a business in multiple states that has to have a high-risk surplus lines policy, you will pay pro-rated taxes based on the porportion of your operation in each state as opposed to some states (like California) that gouged you for the entire amount if all or part of your business was in that state.

Proof that a broken clock is right twice a day.

The source article is linked here.