What is the enshrined premium tax rate for surplus lines in Colorado?

The enshrined premium tax rate for surplus lines in Colorado is indeed 2.75%. This tax is applied to the gross premium charged for surplus lines insurance coverage, which refers to insurance that is not available through licensed insurance companies in the state. The surplus lines market serves a critical role in providing coverage for risks that traditional insurers may decline, and the tax helps support state insurance regulation and consumer protection efforts.

Understanding the premium tax rate is essential for surplus lines brokers and insurers operating in Colorado, as it directly impacts the overall cost of the insurance being provided. The 2.75% rate reflects the state’s regulatory framework aimed at maintaining consistency and funding for oversight in the surplus lines insurance market.