Wet Marine & Transportation

The 2019 Oregon Legislature passed, and the Governor signed into law, House Bill 2787.  The law takes effect on January 1, 2020 and imposes a ¾ of 1% (0.0075) tax on gross premium for all Wet Marine & Transportation insurance written with unauthorized or non-admitted insurers where the insured’s home state is Oregon.

Insurance producers that place Wet Marine & Transportation insurance with nonadmitted insurers shall collect taxes in addition to the gross amount of premium and other charges.  The Director of the Department of Consumer and Business Services may require producers to file a report of any Oregon home state risk nonadmitted Wet Marine & Transportation insurance transacted during the previous 90 days on a form the director specifies.  The report must include a copy of the policy, certificate, cover note, or other evidence of insurance.  

The law further stipulates that the Surplus Line Association of Oregon shall at the request of the Director receive and collect on behalf of the State, and remit to the state, premium tax for Wet Marine & Transportation insurance.  The Association may charge a fee for reviewing Wet Marine & Transportation policies and collecting the tax.

This page includes links to: (1) the filing form and procedures, (2) HB 2787 (3) Division of Financial Regulation notices and communications, (4) related Oregon Insurance Code, and (5) Frequently Asked Questions.