Direct Procured Insurance Tax
on Nonadmitted Insurance Premiums
Any individual or business that buys insurance directly from a nonadmitted insurer must report and pay the Nonadmitted Direct Procured Insurance Premium Tax.
You must file Form IG255, Nonadmitted Insurance Premium Tax Return for Direct Procured Insurance. The return and payment are due by March 1.
Nonadmitted insurers are not licensed by the Minnesota Department of Commerce. Individuals or businesses typically buy nonadmitted insurance to:
- Get more specialized coverage than is available from standard home, auto, or commercial polices sold by admitted insurers.
- Insure their own risks.
Updated Form for Nonadmitted Insurance
We updated Form IG255, Nonadmitted Insurance Premium Tax Return for Direct Procured Insurance. The updates clarify:
- The definition of nonadmitted insurance
- What types of direct procured nonadmitted insurance policies must be reported to us for Insurance Premium Tax, including:
- Surplus lines policies purchased directly from surplus lines insurers
- Premiums paid to captive insurance companies