§8201 — Title 15 Commerce and Trade | U.S. Code

Summary

Only the insured’s home State can require payment of premium taxes on nonadmitted insurance. States may make an agreement or set procedures to split those taxes among States. If a compact or procedures are adopted on or before the end of the 330-day period that begins on July 21, 2010, they apply to taxes required on or after July 21, 2010. If adopted after that 330-day period ends, they apply to taxes required on or after January 1 of the first calendar year that begins after the period ends. The NAIC may report to the House Financial Services and Judiciary Committees and the Senate Banking, Housing, and Urban Affairs Committee about any compacts adopted during that 330‑day period. Congress wants each State to adopt uniform nationwide rules, forms, and procedures (for example, an interstate compact) for reporting, paying, collecting, and allocating these premium taxes. To make tax payments easier, an insured’s home State may require surplus lines brokers and insureds who bought insurance on their own to file yearly tax-allocation reports showing how much of the premium applies to each State. The report and tax payment can be filed by someone the insured authorizes to act as its agent.

Title 15, §8201

Commerce and Trade — Source: USLM XML via OLRC

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

(b)(1)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)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)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)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.

(c)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.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 111–203, title V, § 512, July 21, 2010, 124 Stat. 1589, provided that: “Except as otherwise specifically provided in this subtitle [see

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note below], this subtitle shall take effect upon the expiration of the 12-month period beginning on the date of the enactment of this subtitle [July 21, 2010].”

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Pub. L. 111–203, title V, § 511, July 21, 2010, 124 Stat. 1589, provided that: “This subtitle [subtitle B (§§ 511–542) of title V of Pub. L. 111–203, enacting this chapter and provisions set out as a note under this section] may be cited as the ‘Nonadmitted and Reinsurance Reform Act of 2010’.”

§8201 Reporting, Payment, and Allocation of Premium Taxes

Summary

Title 15, §8201

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

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