All surplus line organizations are required to include a list of endorsed surplus line brokers who transacted business on their behalf, including each broker’s name and license number, with the organization’s Annual Statement and Tax Return.
Brokers who delegated the responsibility for filing the Confidential Report of Placement (SL-1 form) to another surplus line broker(s) pursuant to
Section 1774(b) of the California Insurance Code are not required to file a Zero Premium Tax Return. All delegated surplus line brokers are required to list those surplus line brokers who delegated this reporting function on their behalf, including each broker’s name and license number, on their Annual Statement and Tax Return.
All surplus line brokers with active licenses not named on another surplus line broker's Annual Statement and Tax Return, and all special line brokers with active licenses who did not transact surplus line or special lines surplus line business, are required to file a Zero Premium Tax Return.
Individuals who are endorsed to a business entity license and hold an individual surplus lines bond must also file a Zero Premium Tax Return if they did not transact surplus line business under their individual license.