15 U.S.C. § 8201 — Reporting, payment, and allocation of premium taxes

submitted 16 years ago by Pub. L. 111-203 to r/title-15-COMMERCE-AND-TRADE · 393 words · no verdicts yet

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Only the state where an insurance buyer's business is based — its "home state" — can collect premium taxes for nonadmitted insurance. States can make a compact or set up rules to split those taxes among themselves, with different start dates depending on when the compact was adopted. A buyer's home state can require brokers to file yearly reports showing which states the insurance premium relates to.

(a) Home State's exclusive authority. No state except the insured's home state may require payment of a premium tax on nonadmitted insurance. (b) Allocation of nonadmitted premium taxes. (1) States may make a compact, or set up other procedures, to split the premium taxes paid to a home state among the states involved. (2) Unless the compact says otherwise: (A) a compact adopted within 330 days after July 21, 2010 applies to premium taxes owed on or after July 21, 2010, in any state that is part of that compact; (B) a compact adopted after that 330-day window applies to premium taxes owed starting the following January 1. (3) After the 330-day period ends, the NAIC may send Congress a report describing any compacts or procedures states have adopted. (4) Congress intends for every state to adopt shared, nationwide rules — such as an interstate compact — for reporting, paying, collecting, and splitting these premium taxes. (c) Allocation based on tax allocation report. To help states split up premium taxes, a buyer's home state may require surplus lines brokers and buyers who bought insurance directly to file yearly reports showing what part of the premium relates to property, risk, or exposure located in each state. A person the buyer authorizes as its agent may file this report and pay the tax.

the actual law source: uscode.house.gov ↗public domain

(a) Home State’s exclusive authority

No State other than the home State of an insured may require any premium tax payment for nonadmitted insurance.

(b) Allocation of nonadmitted premium taxes

(1) In general

The States may enter into a compact or otherwise establish procedures to allocate among the States the premium taxes paid to an insured’s home State described in subsection (a).

(2) Effective date

Except as expressly otherwise provided in such compact or other procedures, any such compact or other procedures—

(A)

if adopted on or before the expiration of the 330-day period that begins on July 21, 2010, shall apply to any premium taxes that, on or after July 21, 2010, are required to be paid to any State that is subject to such compact or procedures; and

(B)

if adopted after the expiration of such 330-day period, shall apply to any premium taxes that, on or after January 1 of the first calendar year that begins after the expiration of such 330-day period, are required to be paid to any State that is subject to such compact or procedures.

(3) Report

Upon the expiration of the 330-day period referred to in paragraph (2), the NAIC may submit a report to the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate identifying and describing any compact or other procedures for allocation among the States of premium taxes that have been adopted during such period by any States.

(4) Nationwide system

The Congress intends that each State adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, that provide for the reporting, payment, collection, and allocation of premium taxes for nonadmitted insurance consistent with this section.

To facilitate the payment of premium taxes among the States, an insured’s home State may require surplus lines brokers and insureds who have independently procured insurance to annually file tax allocation reports with the insured’s home State detailing the portion of the nonadmitted insurance policy premium or premiums attributable to properties, risks, or exposures located in each State. The filing of a nonadmitted insurance tax allocation report and the payment of tax may be made by a person authorized by the insured to act as its agent.

Source credit: (Pub. L. 111–203, title V, § 521, July 21, 2010, 124 Stat. 1589.)

history & why it existsrecord from the source credit

2010Enacted · Pub. L. 111-203 · 124 Stat. 1589

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.

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