Kansas Department of Insurance Adopts SLIP+ for Surplus Lines Tax Reporting

The Kansas Department of Insurance has announced the adoption of SLIP+ for reporting and payment of surplus lines premium taxes beginning April 1, 2026. The transition applies to policies effective January 1, 2026, and after, and introduces a 0.175% SLIP+ transaction fee in addition to the 3% surplus lines tax. Certain previously unreported policies dating back to January 1, 2024, must also be filed through SLIP+. Surplus lines brokers should review transition examples and reporting timelines to ensure compliance.

Transition to SLIP+ Effective April 1, 2026

The Kansas Department of Insurance is modernizing its surplus lines reporting framework by adopting SLIP+ for States as the official platform for reporting and payment of surplus lines premium taxes.

Beginning April 1, 2026, Kansas surplus lines brokers and independently procured coverage (IPC) filers must use SLIP+ to report:

• All Kansas policies effective January 1, 2026, and after
• All endorsements to those policies
• Certain previously unreported policies dating back to January 1, 2024

This shift centralizes surplus lines reporting and payment processing into a standardized system designed to improve efficiency and oversight.

Tax Rate and SLIP+ Transaction Fee Structure

For policies effective on or after January 1, 2026, the following will apply:

• 3% Kansas surplus lines premium tax
• 0.175% SLIP+ transaction fee

The SLIP+ transaction fee is new and applies only to policies effective January 1, 2026, and after. Endorsements tied to those policies are also subject to both the surplus lines tax and the transaction fee.

Importantly, both the surplus lines tax and SLIP+ transaction fee are credited on a pro-rata basis for return premiums, cancellations, or reversal (backout) transactions.

Policies and endorsements with effective dates prior to January 1, 2026, will not be assessed the SLIP+ transaction fee, though the applicable surplus lines tax will still apply.

Reporting Requirements for Previously Unreported Policies

The Department has clarified that surplus lines policies, endorsements, audits, or cancellations with effective dates of January 1, 2024, and after that were not previously reported must now be filed through SLIP+.

This requirement creates a look-back reporting obligation for brokers who may have missed prior annual filings. While the 3% surplus lines tax will apply to these policies, the SLIP+ transaction fee will only apply if the policy effective date is January 1, 2026, or later.

Policies or endorsements with effective dates prior to January 1, 2024, that were not previously reported must continue to be filed directly with the Kansas Department of Insurance using the Kansas Surplus Lines Tax Filing System.

Filing Examples Clarify the Transition Process

To assist with implementation, the Department provided detailed transition examples:

Example One: A policy effective January 1, 2026, must be reported in SLIP+ after April 1, 2026. Both the 3% tax and 0.175% transaction fee apply.

Example Two: An endorsement effective April 15, 2026, on a policy originally effective October 1, 2025, requires split handling:

• October 1, 2025, policy must be reported through the Kansas Surplus Lines Tax Filing System by the March 1, 2026, deadline.
• April 15, 2026, endorsement must be reported in SLIP+.
• Only the 3% surplus lines tax applies; no SLIP+ transaction fee applies because the underlying policy effective date predates January 1, 2026.

Example Three: A policy effective January 1, 2025, that was not previously reported must be filed in SLIP+ after April 1, 2026. The 3% tax applies, but no transaction fee.

Example Four: Policies or endorsements effective prior to January 1, 2024, that were not reported must be filed directly with the Kansas DOI outside of SLIP+.

These examples highlight the importance of carefully reviewing policy effective dates to determine the appropriate reporting channel and fee application.

Compliance and Operational Considerations

Surplus lines brokers should begin preparing for implementation well before April 1, 2026. Recommended steps include:

• Reviewing all Kansas surplus lines policies effective January 1, 2024, and later
• Identifying any unreported filings
• Updating internal tax calculation systems to include the 0.175% SLIP+ transaction fee for applicable policies
• Training accounting and compliance staff on new reporting workflows
• Reviewing March 1 annual filing deadlines to avoid overlap confusion

The Department has indicated that additional training and guidance will be provided before implementation. However, early preparation will reduce transition risk and minimize reporting errors.

Conclusion

The Kansas Department of Insurance’s adoption of SLIP+ represents a significant procedural shift for surplus lines tax reporting and payment. Beginning April 1, 2026, brokers must use the new platform for policies effective January 1, 2026, and after, and for certain previously unreported policies.

With the addition of a 0.175% transaction fee and expanded reporting requirements, surplus lines brokers should conduct a comprehensive review of Kansas business to ensure timely and accurate compliance during the transition period.

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