PURPOSE: This rule implements the surplus lines premium tax allocation provisions contained in section 384.061, RSMo.

1. (1) For purposes of determining the amount of premium properly allocable to that portion of the risk located in this state pursuant to the provisions of section 384.061, RSMo, the following formulas shall be used where applicable:

   1. (A) Products Liability= Missouri Sales Revenue Total Sales Revenue
   2. (B) Fire and Extended Coverage= Missouri Property Value All Property Value
   3. (C) Employee Liability= Missouri Salaries Paid All Salaries Paid FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION

and

1. (D) Transportation Insurance= Missouri Revenue Miles All Revenue Miles

1. (2) To the extent that the formulas contained in section (1) are inapplicable or do not adequately reflect that portion of the risk located within this state, the tax payable shall be computed on the portions of the premium properly allocable to that portion of the risks located in this state. The formula may be based on the rating basis for the particular policy. The surplus lines licensee shall obtain the approval of the director prior to the use of any other formula for determining the amount of premium allocable to that portion of the risk located within this state.

AUTHORITY: sections 374.045, RSMo 1986 and 384.061, RSMo Supp. 1990.* Original rule filed Sept. 24, 1991, effective Feb. 6, 1992.

*Original authority: 374.045, RSMo 1967 and 384.061, RSMo 1967, amended 1989.