Ch. 48       LAWS TWENTY-NINTH LEGISLATURE
INSURANCE-TAX ON PREMIUMS
CHAPTER 48
H.B. No. 728
An Act relating to insurance; amending 36 O.S.1961, § 1115;
imposing a tax on insurance policies issued by unauthorized
insurers; requiring reports with respect to such policies;
making the insured liable for such taxes upon such policies
purchased through unauthorized sources; allocating pro-
ceeds to the insurance commissioner until June 30, 1965;
making provisions severable; and declaring an emergency.
Be it enacted by the People of the State of Oklahoma:
Section 1. 36 O.S.1961, § 1115, is hereby amended to read as follows:
§ 1115. Tax on surplus lines-Unauthorized insurers
A. On or before the first day of April of each year, each surplus line
broker shall remit to the State Treasurer through the Insurance Com-
missioner a tax on the premiums, exclusive of sums collected to cover
Federal and state taxes and examination fees, on surplus line insurance
subject to tax transacted by him during the preceding calendar year, as
shown by his annual statement filed with the Insurance Commissioner.
Such tax shall be at the rate of six per cent (6 %) of the gross premiums
less premiums returned on account of cancellation or reduction of pre-
mium, and shall exclude gross premiums and returned premiums upon
business exempted from surplus line provisions under section 1119 of this
article.
B. Except as provided in subsection C hereof, for the purpose of de-
termining the surplus line tax, the total premium charged for surplus line
insurance placed in a single transaction with one underwriter or group
of underwriters, whether in one or more policies, shall be allocated to
this state in such proportion as the total premium on the insured prop-
erties or operations in this state, computed on the exposure in this state
on the basis of any single standard rating method in use in all states or
countries where such insurance applies, bears to the total premium so
computed in all such states or countries.
C. The surplus line tax on insurance on motor transit operations con-
ducted between this and other states shall be paid on the total premium
charged on all surplus line insurance less (1) the portion of the premium
determined as provided in subsection B hereof charged for operations in
other states taxing such premium of an insured maintaining its head-
quarters office in this state, or (2) the premium for operations outside
of this state of an insured maintaining its headquarters office outside of
this state and branch office in this state.
D. (1) Every person, corporation, association or partnership procur-
ing or accepting any policy of insurance from an unauthorized insurer,
upon, covering or relating to a subject of insurance resident or having a
situs in the State of Oklahoma, or any such policy of insurance which is
to be performed in whole or part in the State of Oklahoma, except such
policies as are lawfully obtained through a licensed surplus line broker
in this State, shall, within thirty (30) days next succeeding the issuance
of such policy, report the purchase of such policy or policies of insurance
to the Insurance Commissioner, on forms prescribed by him, and at the
same time remit to the Insurance Commissioner a tax in the amount of
six percent (6%) of the annual premium agreed to be paid, or paid, for
such insurance. Such policies of insurance, providing for the payment
of retrospective premiums, or policies on which the premiums are not
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1963 REGULAR SESSION

determinable at the time of issuance, shall be reported to the Insurance
Commissioner, by the insured, within thirty (30) days next succeeding
the date such policies are issued and the tax payable on such policies shall
be remitted, by the insured, to the Insurance Commissioner within thirty
(30) days next succeeding the date such premiums can be determined.
The tax on renewal premiums shall be paid by the insured in accordance
with this Section, in like manner as provided for payment of the orig-
inal premium tax, within thirty (30) days next succeeding the date such
premiums can be determined.
(2) The taxes imposed by this Section on surplus lines shall be paid
into the State Treasury and, until June 30, 1965, such sum is hereby
appropriated to the office of the Insurance Commissioner for the purpose
of and for use in enforcing, administering and effectuating the duties of
the Insurance Commissioner. All payments out of this appropriation
shall be made by the State Treasurer on warrants of the State Auditor
issued on vouchers approved by the Insurance Commissioner. This appro-
priation is in addition to other appropriations made to the office of the In-
surance Commissioner, and if not expended by June 30, 1965, shall revert
to the general fund of this State.
Section 2. Severability
The provisions of this Act are severable, and if any part or provision
hereof shall be held void, the decision of the court so holding shall not
affect or impair any of the remaining parts or provisions of this Act.
Approved May 2, 1963. Emergency.