RETALIATION GUIDE

December 2023

Enclosed is the 2023 update to the Retaliation Guide, incorporating the changes that have occurred in

state laws during the past year, as reported by each state. All the pages in your book should be

replaced. An arrow in the left margin indicates a change.

In February 2024, the NAIC plans to release an updated second volume of the Retaliation Guide to help

you identify the state tax forms used for collecting premium and retaliatory taxes.

If you have questions about the content, you should request clarification from the state contacts listed. If

you have questions about the printing or distribution of copies, please contact an NAIC Customer Service

Representative at (816) 783-8300 or pr[email protected].

Olivea A. Myers

Editor

Legal Counsel

Patricia E. Cook

Assistant Editor

Senior Paralegal

he Retaliation Guide is intended to provide helpful information about retaliatory and other taxes and assessments. The Guide is not intended to be cited as

binding legal authority and does not constitute a formal legal opinion by the NAIC staff on the provisions of state law and should not be relied upon as such.

Every effort has been made to provide correct and accurate summaries to assist the reader in targeting useful information. For further details, including any

additional adoptions, the statutes and regulations cited should be consulted.

Retaliation: A Guide to State

Retaliatory Taxes, Fees, Deposits

and Other Requirements

Volume I

December 2023

Accounng & Reporng

Informaon about statutory accounng principles and the

procedures necessary for ling nancial annual statements

and conducng risk-based capital calculaons.

Consumer Informaon

Important answers to common quesons about auto, home,

health and life insurance — as well as buyer’s guides on annu-

ies, long-term care insurance and

Medicare supplement plans.

Financial Regulaon

Useful handbooks, compliance guides and reports on nancial

analysis, company licensing, state audit

requirements and receiverships.

Legal

Comprehensive collecon of NAIC model laws, regulaons

and guidelines; state laws on insurance topics; and other reg-

ulatory guidance on taxation and consumer privacy.

Market Regulaon

Regulatory and industry guidance on market-related issues,

including anfraud, product ling requirements, producer

licensing and market analysis.

NAIC Acvies

NAIC member directories, in-depth reporng of state

regulatory acvies and ocial historical records of NAIC na-

onal meengs and other acvies.

Special Studies

Studies, reports, handbooks and regulatory research

conducted by NAIC members on a variety of insurance-

related topics.

Stascal Reports

Valuable and in-demand insurance industry-wide stascal

data for various lines of business, including auto, home,

health and life insurance.

Supplementary Products

Guidance manuals, handbooks, surveys and research

on a wide variety of issues.

Capital Markets & Investment Analysis

Informaon regarding porolio values and procedures for

complying with NAIC reporng requirements.

White Papers

Relevant studies, guidance and NAIC policy posions on

a variety of insurance topics.

ISBN: 978-1-64179-365-0

Printed in the United States of America

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from the NAIC.

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Retaliation—December 2023

ALABAMA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Ala. Code § 27-4A-2

All amounts received as consideration for insurance contracts less returned premiums,

reinsurance premiums from companies subject to premium tax, and dividends paid. Annuity

considerations are not included.

Tax Rate:

§ 27-4A-3

Life insurers 2.3%

Health and accident and health 1.6%

Individual life policies of $5,001 up to $25,000 will be taxed at 1%.

Individual life policies of $5,000 or less, will be taxed at 0.50%.

Hospital, medical, surgical, or other health benefits provided to groups with less than 50 insured

participants will be taxed at 0.50%.

Hospital, medical, surgical, or other health benefits supplementary to Medicare and Medicaid or

governmental employee plans are exempt from premium tax.

Premium tax on insurance other than life, health and accident and health at 3.6%.

All property and multi-peril insurance written in fire protection classes 9 & 10 at 1%.

Mobile homes, low value dwelling policies at 1%.

Medical liability insurance at 1.6%.

§ 27-31A-4

Risk retention groups 3.6%, same as foreign admitted insurer

Other Taxes and Assessments:

§§ 40-14a-21 to 40-14a-29 Privilege Tax

The tax rate is determined by the company’s total income allocated to Alabama. The amount of

tax is determined by multiplying the taxpayer’s net worth in Alabama by that rate.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§§ 11-51-120 to 11-51-122 Municipal Corporations Tax

Municipal corporations may impose a privilege tax of up to 4% on each $100 of gross premiums,

less return premiums, on fire and marine policies on property in the municipality issued during

the previous year; actual amount based on size of municipality. There is no credit for the cost of

reinsurance in a company not authorized in Alabama. The tax on other than fire and marine

insurers varies by size of city or town. The tax is due Mar. 1.

§ 25-5-316 Workers’ Compensation Administration Trust Fund

The state has established a trust fund for administrative expenses. Insurers shall be assessed $250,

plus a proportional amount based on total compensation and medical payments made, to provide

a total assessment of $5,000,000 per year. Insurers and self-insured plans must file a report by

Mar. 1 showing claims for prior year.

§§ 27-42-8; 27-42-8.1 Property and Casualty Guaranty Association

The property and casualty guaranty association may assess an amount up to 1% of net direct

premiums for the year preceding the insolvency on the kinds of insurance in the account with the

deficiency. Effective May 19, 2008, an assessment of up to 2% of net direct premiums for the

year preceding the insolvency for the workers’ compensation account only.

§ 27-44-9 Life and Health Guaranty Association

The life and health guaranty association may assess an amount up to 1% of net direct premiums

on the kinds of insurance in the account with the deficiency plus no more than $300 per year as a

non-pro rata assessment for administrative expenses.

§ 27-31B-16 Captive Insurers

Direct written premiums:

0.4% on first $20 million of direct premiums;

0.3% on next $20 million;

0.2% on next $20 million;

0.075% on each dollar thereafter.

Reinsurance:

0.225% on first $20 million of assumed reinsurance premiums;

0.150% on next $20 million;

0.050% on next $20 million;

0.025% on each dollar thereafter.

No reinsurance tax applies to premiums for risks or portions of risks which are subject to taxation

on a direct basis.

(cont.)

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 27-31B-16 Captive Insurers (cont.)

Captive insurers pay annual minimum tax of $5,000 if the aggregate taxes to be paid by a captive

insurance company calculated under subsections (a) and (b) of §27-31B-16 amount to less than

$5,000 in any year.

Effective July 1, 2016, any business privilege taxes paid, or any examination expenses paid may

be deducted in the calendar year in which they are paid. Aggregate taxes paid by a captive is

capped as $100,000 in any one year.

If a captive insurance company has been licensed for less than a full calendar year and has written

premiums the tax for which is less than the minimum set forth in this section, the tax due shall be

prorated as follows:

(1) If licensed on or before Mar. 31, 100%.

(2) If licensed April 1 to June 30, 75%.

(3) If licensed July 1 to Sept. 30, 50%.

(4) If licensed Oct. 1 to Dec. 31, 25%.

If a captive insurance company surrenders its license and the calculated tax on premiums written

during the calendar year is less than the minimum set forth in this section, the tax due shall be

prorated as follows:

(1) If surrendered on or before Mar. 31, 25%.

(2) If surrendered April 1 to June 30, 50%.

(3) If surrendered July 1 to Sept. 30, 75%.

(4) If surrendered Oct. 1 to Dec. 31, 100%.

The $5,000 minimum is not applicable if the captive has not written any premiums during the

calendar year.

Exclusions and Deductions:

§ 27-34-42 Fraternals

Fraternal benefit societies are exempt from the premium tax.

§ 27-4-8 Life Insurers to Nonprofit Organizations

Life insurers organized and operated without profit for the purpose of providing life insurance

and annuities to nonprofit education and scientific institutions and their employees are exempt

from premium tax. They shall pay an annual license fee of $5,000.

Retaliation—December 2023

Credits:

§ 27-4A-3

The following may be deducted in full:

Ad valorem taxes paid by the insurer upon any real estate and the improvements therein in

Alabama owned and at least 50% occupied by the insurer all year or occupied in whole or part as

its principal office all year.

All licenses and fees paid to any county in Alabama for the privilege of engaging in the business

of insurance.

Ad valorem taxes paid directly or in the form of rent to a third-party landlord on the insurer’s

offices in Alabama, apportioned by the square footage occupied by the insurer.

60% of the privilege tax is deductible.

All expenses of examination of the insurer by the commissioner.

All credits for assessments as provided under §§ 27-42-16 and 27-44-13, or assessments for any

insurance guaranty fund or pool now or hereafter created by statute paid during the calendar year.

§ 40-14B-16 Certified Capital Company (CAPCO)

Insurance companies that have invested in certified capital companies and have been allocated a

premium tax credit by the Alabama Development Office may take up to 12.5% of the vested

premium tax credit each tax year beginning on or after Jan. 1, 2006. Any unused credits may be

carried forward indefinitely until the premium tax credits are used.

§ 40-14B-22 Certified Capital Company (CAPCO II)

Insurance companies that have invested in CAPCO II and have been allocated a premium tax

credit by the Alabama Development Office may take up to 5% of the vested premium tax credit

each tax year beginning Jan. 1, 2011. Beginning Jan. 1, 2014, the insurer may take up to 17.5% of

the credit. Any unused credit may be carried forward indefinitely until the credits are used.

§ 40-18-376 Investment Credit

The incentivized company is allowed an investment credit in an annual amount equal to 1.5

percent of the capital investment incurred as of the beginning of the incentive period to offset the

insurance premium tax levied by Section 27-4A-3(a), or as an estimated payment of insurance

premium tax.

Retaliation—December 2023

Credits (cont.)

§ 27-4A-3

Insurance Offices Facilities Credit:

For each office owned or leased by an insurer in Alabama and used for insurance operations,

the insurer shall be entitled to tax credits of:

Number of Full-Time Employees in Office

Credit as a % of Taxable Premiums

1–3

0.0025%

4–10

0.0050%

11–50

0.0075%

51 or more

0.0100%

Total allowable credit for office facilities shall not exceed 1% of the insurer’s Alabama taxable

premiums.

Real Property Investment Credit:

For each $1 million in value of real property investments in Alabama, an insurer shall be

entitled to a credit of 0.10% of its Alabama taxable premiums. The total credit allowed for real

property investments shall not exceed 1% of an insurer’s Alabama taxable premiums.

§ 27-44-13 Life and Health Guaranty Association

Life and health guaranty association assessments may be offset against the premium tax at a rate

of 20% per year for five years beginning the year after the assessment is paid.

§ 27-42-16 Property and Casualty Guaranty Association

Property and casualty guaranty association assessments may be taken as a credit against taxes at

the rate of 20% per year for 5 years beginning year after assessment is paid.

§ 27-1-24.1 Coastal Incentive Credit

Insurance carriers must make application and be issued an award certificate in order to receive a

nonrefundable credit against insurance premium tax for new policies written after the date this

Code was amended, July 1, 2014, on properties insured by the Alabama Insurance Underwriting

Association at the time of writing by the private insurer for wind and hail coverage in specified

coastal areas. The amount of the credit is equal to 20% for premiums written in zones B4, B5,

M4, M5 or successor zones and 35% for premiums written in zones B1, B2, B3, M1, M2, M3,

Gulf Front or successor zones. The total credit to be awarded each year is $50,000.

§§ 41-9-216 to 41-9-219.7 Alabama New Markets Credit

Tax credits for investments in impoverished and low-income communities. Alabama Commerce

Department allocates the credits. Zero percent for the first year and 8.33% for years 2 through 7.

Retaliation—December 2023

Credits (cont.)

→ §§ 40-18-370 to 40-18-383 Job Act Investment Credit

The incentivized company is allowed an Investment Credit in an annual amount equal to 1.5

percent of the capital investment incurred as of the beginning of the incentive period of 10 years,

to be used to offset the insurance premium tax levied by Section 27-4A-3(a). If the credit exceeds

the amount of taxes that are allowed to be offset by the project agreement, the unused credit can

be carried forward for up to five years. The credit is available for qualifying projects for which

project agreements are executed on or prior to July 31, 2028. At no time prior to December 31,

2021, shall the annualized balance of the outstanding jobs act incentives exceed $350 million.

This amount will increase to $375 million for 2023; $400 million for 2024; $425 million for

2025; $450 million for 2026; and $475 million for 2027. Of that amount, $20 million must go to

qualifying projects located in targeted or jumpstart counties. Only taxpayers that have been

approved by the Alabama Department of Commerce for qualifying projects are eligible to claim

the credit as provided in the executed State Project Agreement.

→ §§ 40-18-417.4 to 40-18-417.7 Growing Alabama Tax Credit

Alabama taxpayers who make cash contributions to local economic development organizations

for approved qualifying projects receive a Growing Alabama tax credit that can offset up to 50%

of the insurance premium tax levied by Section 27-4A-3(a). All Growing Alabama Credit funding

allocations must be approved on or prior to July 31, 2023, by the Renewal of Alabama

Commission, which is available for online applications. Taxpayers donating to economic

development organizations receive a credit equal to their donation and may carry the credit

forward for up to five years. Cumulative amount of funding approved shall not exceed $20

million prior to January 1, 2024. Amount shall increase to $23 million for the calendar year

ending December 31, 2024; $26 million for 2025; $29 million for 2026; $32 million for 2027;

and $35 million for 2028.

→ §§ 41-10-840 to 41-10-847 Innovating Alabama Tax Credits

A taxpayer is allowed an Innovating Alabama tax credit to be applied to offset the insurance

premium tax by making cash contributions to certain economic development organizations using

an online system created by the Alabama Department of Revenue. In no event shall the tax credit

cause a taxpayer’s tax liability to be reduced by more than 50%. Unused credits may be carried

forward for no more than 5 years.

Retaliation—December 2023

Payment Due Dates:

→ § 27-4A-3

Each insurer shall pay its premium taxes on a quarterly basis, as follows: on or before May 15, a

payment estimated on the basis of 25% of its business done during the preceding calendar year or

actual business done from January 1 through March 31; on or before August 15, a payment

estimated on the basis of 45% of its business done during the preceding calendar year or at the

option of the insurer, on the basis of 180% of its actual business done from April 1 through June

30; on or before November 15, a payment estimated on the basis of 25% of its business done

during the preceding calendar year, or at the option of the insurer, on the basis of its actual

business done from July 1 through September 30 of the same calendar year; on or before March 1,

a payment is the amount of the remainder of the actual premium taxes due on its business done

during the preceding calendar year. Any taxes paid on an estimated quarterly basis during the

calendar year shall be reconciled to actual premiums received on risks for such calendar year on

the March 1 payment date in the succeeding calendar year.

Penalties:

§ 27-4A-4

Failure to comply with all of provisions subjects the companies to a penalty of not less than $1,000

or more than $10,000.

§ 27-9A-7

Failure for an independent adjuster to inform the commissioner within 30 days of a change in legal

name or address shall result in a penalty of $50. If the penalty is not paid within 30 days after

notice of the penalty assessment, the license shall be suspended until the penalty is paid.

Extensions:

No specific provision for extension.

Retaliatory Law:

§ 27-3-29

When taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit

requirements, etc. charged Alabama insurers would exceed those imposed by Alabama on similar

insurers, a retaliatory tax will be imposed. Taxes imposed by political subdivisions are considered

imposed by the state. All fees and taxes are aggregated on a separate retaliatory tax form, PG.

Retaliation—December 2023

FEES

All fees and taxes are aggregated on a separate retaliatory tax form.

→ Insurers’ Fees:

§§ 27-4-2; 27-31B-4; 27-21A-21; 8-8-15; 27-12A-41; 27-22A-7; 482-1-160-.04; Bulletin 2021-8

(July 29, 2021); Department website

[Fees in brackets were in effect prior to 1/1/2023. Fees in italics in effect 1/1/2023.]

Certificate of authority:

Initial application for original certificate of authority, including the filing with

the commissioner of all documents incidental thereto .................................................. $500

Initial application for original certificate of authority HMO, including the filing with

the commissioner of all documents incidental thereto ...................................................... 50

Captive insurers, initial application for original certificate of authority ................................ 240

Audit and examination fee for a company application ....................................................... 2,000

Audit and examination fee for an HMO application .......................................................... 2,000

Issuance of original certificate of authority ........................................................................... 500

Annual continuation or renewal fee ....................................................................................... 500

Annual continuation or renewal fee HMO ............................................................................. 200

Reinstatement fee ................................................................................................................... 500

Charter documents:

Filing with the commissioner amendments to articles of incorporation

or of association, or of other charter documents or to bylaws ........................................... 25

Solicitation permit:

Solicitation’s permit, filing application and issuance ............................................................ 250

Annual statement:

For insurer, except when filed as part of application for original certificate

of authority, filing.............................................................................................................. 25

Audit and examination fee for annual statement ................................................................ 1,200

Audit and examination fee for annual statement,

mutual aid societies and fraternals .................................................................................. 400

Audit and examination fee for annual statement HMOs ........................................................ 500

scellaneous services:

For copies of documents, records on file in insurance department, per page ............................ 1

For each certificate of the commissioner under his seal, other than agent licenses ................... 5

Service of process .................................................................................................................... 50

Returned check fee ................................................................................................................... 30

Fraud Unit:

Assessment ................................................................................................................... [200] 240

Producer appointments:

Filing notice of appointment .................................................................................................... 40

Annual continuation of appointment ....................................................................................... 25

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 27-4-2; 27-31B-4; 27-21A-21; 8-8-15; 27-12A-41; 27-22A-7; 482-1-160-.04; Bulletin 2021-8

(July 29, 2021); Department website (cont.)

[Fees in brackets were in effect prior to 1/1/2023. Fees in italics in effect 1/1/2023.]

Service representative appointments:

Initial license/appointment fee (per insurer) .......................................................................... $70

Biennial license renewal fee .................................................................................................... 70

Late fee .................................................................................................................................... 50

Appointment renewal fee ......................................................................................................... 40

Captive insurers:

Filing application for license ................................................................................................. 240

License fee (for original license and each annual renewal) ................................................... 360

Producer Licensing Fees:

§§ 27-4-2; 27-9A-7; 27-8A-9; 27-22A-7; 27-25-4.7; 27-25-4.2; Bulletin 2021-8 (July 29, 2021);

Department website

Producer licenses:

Individuals (resident or nonresident):

License fee (for original license + application) ................................................................. 80

Late fee (only if paid month after birth-month) ................................................................ 50

Biennial license renewal fee .............................................................................................. 70

Reissue fee (within 365 days).......................................................................................... 140

Filing notice of appointment ............................................................................................. 40

Annual continuation of appointment fee ........................................................................... 25

Business entities:

License fee (for original license + application) ............................................................... 130

Biennial license renewal fee ............................................................................................ 100

Late fee .............................................................................................................................. 50

Notice of appointment fee ................................................................................................. 40

Annual continuation of appointment fee ........................................................................... 25

Late fee, for appointment continuation invoice ............................................................... 250

plus an additional 250 for each additional month late

Temporary:

License fee per insurer ...................................................................................................... 80

Notice of appointment fee per insurer ............................................................................... 40

Total initial fees ............................................................................................................... 120

Examination fees (for producer examination or reexamination of resident agent or broker):

Each classification of examination .......................................................................................... 50

Producer Combined Life and Health exam .............................................................................. 75

Producer Combined Property and Casualty exam ................................................................... 75

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 27-4-2; 27-9A-7; 27-8A-9; 27-22A-7; 27-25-4.7; 27-25-4.2; Bulletin 2021-8 (July 29, 2021);

Department website (cont.)

Reinsurance intermediary license:

Filing application for license ................................................................................................. $30

Issuance of original license .................................................................................................... 140

Annual continuation of license .............................................................................................. 100

Managing general agent’s license (§ 27-4-2; Bulletin 2021-08):

Application fee for initial application, each insurer ................................................................. 30

License fee ............................................................................................................................. 125

Annual continuation of license, each insurer ........................................................................... 75

Examination fee ..................................................................................................................... 250

Service representative license (§§ 27-4-2; 27-8A-9):

Biennial continuation of license, property and casualty, each insurer ..................................... 70

Late fee .................................................................................................................................... 50

Surplus lines broker:

Individuals:

License fee for original license + application .................................................................. 230

Renewal ........................................................................................................................... 200

Business entities:

Initial license fee + application fee .................................................................................. 530

Annual license renewal fee .............................................................................................. 500

Adjusters (§§ 27-4-2; 27-9A-7; Ala. Admin. Code (AAC) 482-1-151-.06; 482-1-151-.07;

482-1-151-.08):

Individuals:

Individual license fee for original license + application.................................................. 110

Biennial continuation of licenses ...................................................................................... 80

Reissue (within 365 days) ............................................................................................... 160

Late fee (only if paid month after birth month) ................................................................. 40

Apprentice adjuster .......................................................................................................... 110

Business entities:

License fee + application fee ........................................................................................... 230

Biennial license renewal fee ............................................................................................ 200

Reinstated within 30 days of expiration .......................................................................... 300

Reissue fee (within 365 days)............................................................................................ 80

Examination fee ....................................................................................................................... 75

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 27-4-2; 27-9A-7; 27-8A-9; 27-22A-7; 27-25-4.7; 27-25-4.2; Bulletin 2021-8 (July 29, 2021);

Department website (cont.)

Portable electronics (§ 27-22A-7):

Individuals:

Initial license fee (small) ............................................................................................... $100

Initial license fee (large) ............................................................................................... 1,000

Renewal fee (small) ......................................................................................................... 100

Renewal fee (large) ......................................................................................................... 500

Late fee .............................................................................................................................. 50

Appointment fee (small) .................................................................................................... 40

Appointment fee (large) .................................................................................................... 40

Business entities:

Initial license fee (small) ................................................................................................. 100

Initial license fee (large) ............................................................................................... 1,000

Renewal fee (small) ......................................................................................................... 100

Renewal fee (large) ......................................................................................................... 500

Late fee .............................................................................................................................. 50

Appointment fee (small) .................................................................................................... 40

Appointment fee (large) .................................................................................................... 40

Title insurance (§§ 27-25-4.7; 27-25-4.2; AAC 482-1-148-.06):

Individuals:

Initial license + application fee ......................................................................................... 60

Biennial license renewal fee .............................................................................................. 40

Late fee .............................................................................................................................. 50

Reinstatement fee .............................................................................................................. 80

Notice of appointment fee ................................................................................................. 30

Appointment renewal fee .................................................................................................. 10

Examination fee ................................................................................................................. 75

Business entities:

Initial license + application fee ....................................................................................... 120

Biennial license renewal fee ............................................................................................ 100

Late fee .............................................................................................................................. 50

Notice of appointment fee ................................................................................................. 30

Appointment renewal fee .................................................................................................. 10

Producers’ appointment fees are paid by the company. Producer’s license renewal fees are the

responsibility of the producer.

Retaliation—December 2023

DEPOSITS

§ 27-3-11

A value at all times not less than $100,000 or the minimum paid-in capital stock if a stock insurer,

or surplus if a mutual or reciprocal insurer, required to be maintained by the insurer under this

title for authority to transact the kinds of insurance to be transacted, whichever is the smaller

amount. Foreign insurers may provide certification of like deposit in another state.

§ 27-3-12

Surety insurers shall deposit an additional $50,000, unless the company’s deposit in its state of

domicile is at least $200,000.

§ 27-3-13

Domestic title insurers may deposit $50,000; foreign insurers must deposit $50,000.

CONTACT PERSON

Premium Tax

LaKisha Hardy: (334) 241-4114; lakisha.hardy@insurance.alabama.gov

Premium Tax

Andrea Brown: (334) 241-4183; andrea.brown@insurance.alabama.gov

Premium Tax

Caitlin Walker: (334) 240-7574; caitlin.walker@insurance.alabama.gov

Producers’ Licensing

Antwionne Dunklin: (334) 241-4126; antwionne.dunklin@insurance.alabama.gov

Deposits

Ken Smithson: (334) 241-4156; john.smithson@insurance.alabama.gov

Reinsurance Intermediaries and MGAs

Jill Gregory: (334) 241-4161; jill.gregor[email protected].gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

ALASKA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Alaska Stat. § 21.09.210

Total direct premium written minus cancellations, returned premiums, dividends, refunds and other

similar returns. Considerations on annuities are not taxed; premiums for wet marine and

transportation insurance are covered under another section.

Tax Rate:

§§ 21.09.210; 21.59.070

2.7% for domestic and foreign insurers, except hospital and medical service corporations and title

insurers.

Individual life insurance premiums 2.7% for a policy of individual life insurance with a policy year

premium up to $100,000 and 0.08% for a policy of individual life insurance with a policy year

premium exceeding $100,000. Premiums taxed at the 0.08% rate are not subject to retaliation.

2.7% for risk retention groups

2.7% for automobile service corporations

6% of gross premiums less claims paid for hospital and medical service corporations.

0.75% gross underwriting profit for wet marine and transportation contracts

§ 21.66.110

1% of gross title insurance premiums

§ 21.85.100

2.7% for multiple employer welfare arrangement, except on premiums already reported by

domestic and foreign insurers.

Retaliation—December 2023

Other Taxes and Assessments:

→ § 23.30.040 Second Injury Fund

Employer or insurer contributes an amount based upon a rate set by commissioner and limited by

the amount paid out in workers’ compensation benefits. The maximum rate for 2023 is 2%.

The workers’ compensation reforms passed by the State of Alaska Legislature on May 11, 2018,

(SCS CSHB 79(FIN)) provided for the closure of the Second Injury Fund. The fund will not accept

claims for second injury fund reimbursement after September 30, 2020.

→ § 21.55.220 Health Pool

Comprehensive Health Insurance Association (ACHIA) may assess insurers to cover

administrative operating and losses of the association. 50% of ACHIA assessments paid in 2022

may be offset against 2023 premium taxes.

§ 21.80.060 Property and Casualty Guaranty Association

Initial assessments made by the guaranty association may not be more than 2% of net direct written

premiums in an account with a deficiency.

§ 21.79.070 Life and Health Guaranty Association

The total of all assessments on a member insurer for each subaccount of the life and annuity account

and for the health account may not in any one calendar year exceed 2% of the insurer's average

annual premiums received in this state on policies or contracts covered by the account or

subaccount during the three calendar years preceding the year in which the insurer became an

impaired or insolvent insurer.

§ 21.09.210 Preemption

The state government preempts the field of imposing excise, privilege, franchise, income, license,

permit, registration, and similar taxes, licenses, and fees upon insurers and their general agents,

agents, and representatives; and on the intangible property of insurers or agents; and all political

subdivisions of agencies in the state are prohibited from imposing or levying upon insurers, their

agents and representatives, any tax, license, or fee. This subsection shall not be construed as

prohibiting the imposition by political subdivisions of taxes upon real and tangible personal

property of insurers and their general agents, agents, and representatives.

Exclusions and Deductions:

§ 21.84.400 Fraternals

Fraternal benefit societies are exempt from the payment of premium tax.

§ 21.09.210(i) Public Officers and Employees

Premiums paid by the State of Alaska for insurance policies and contracts purchased for public

officers and employees are exempt from taxation.

Retaliation—December 2023

Exclusions and Deductions (cont.)

5 U.S.C. § 8909; Social Security Act § 1853

Federal law preempts taxing the following:

• Group health benefits insurance purchased under the Federal Employees Health Benefits Act

Program; and

• Payment to Medicare+ Choice organizations under § 1853.

Credits:

§ 21.96.070 Cash Contributions to Educational Institutions

(a) A taxpayer is allowed a credit against premium tax for cash contributions or equipment accepted

1) for direct instruction, research, and educational support purposes, including library

and museum acquisitions, and contributions to endowment, by an Alaska university

foundation or by a nonprofit, public or private, Alaska two-year or four-year college

accredited by a national or regional accreditation association;

2) for secondary school level vocational education courses, programs and facilities by

a school district in the state;

3) for vocational education courses, programs, and facilities by a state-operated

vocation technical education and training school;

4) for a facility by a nonprofit, public or private, Alaska two-year or four-year college

accredited by a national or regional accreditation association;

5) for Alaska Native cultural or heritage programs and educational support including

mentoring and tutoring, provided by a nonprofit agency for public school staff and

for students who are in grades kindergarten through grade 12 in the state; and

6) for education, research, rehabilitation, and facilities by an institution that is located

in the state and that qualifies as a coastal ecosystem learning center under the Coastal

America Partnership.

(b) The credit is 50% of contributions.

(cont.)

Retaliation—December 2023

Credits (cont.)

§ 21.96.070 Cash Contributions to Educational Institutions (cont.)

(d) A contribution claimed as a credit may not

1) be the basis for a credit claimed under another provision of this title and

2) when combined with contributions that are the basis for credits taken during the

taxpayer’s tax year under AS 43.20.014, AS 43.55.019, AS 43.56.018, AS

43.65.018, AS 43.75.018, or AS 43.77.045, result in a total amount of credits

exceeding $1,000,000; if the taxpayer is a member of an affiliated group, then the

total amount of credits may not exceed $1,000,000 for the affiliated group.

(e) The credit may not reduce a person’s tax liability under AS 21.09.210 or AS 21.66.110 to below

zero for any tax year. An unused credit or portion of a credit not used for a tax year may not be

sold, traded, transferred, or applied in a subsequent tax year.

§ 21.55.220 Comprehensive Health Insurance Association (CHIA) Assessments

A qualified insurer is entitled to offset 50% of the amount of CHIA assessments against premium

taxes the insurer owes on premiums written in the year following the date of the assessment. The

offset may not reduce the premium tax payable to less than zero or create a premium tax credit. An

unused offset may be carried over to the immediately following calendar year. 50% of ACHIA

assessments paid in 2022 may be offset against 2023 premium taxes. This credit is not subject to

retaliation.

Payment Due Dates:

§ 21.09.210; 3 Alaska Admin. Code 21.550 to 21.570

The annual tax report and payment of tax is due on or before Mar. 1. An authorized insurer that

pays $10,000 or more in one tax year shall pay tax the following year in four payments. On or

before May 31, Aug. 31, and Nov. 30, pay 25% of annual premium tax it paid the previous tax year.

On or before Mar. 1 of the following year, calculate total tax due and pay balance or request a

refund or overpayment towards subsequent year tax. Requirement to pay quarterly does not apply

to ocean marine tax or retaliatory fees. The taxes must be paid by the automated clearing house

debit or credit payment system through OPTins.

§ 21.09.200; 3 Alaska Admin. Code 31.050

The annual statement filing fee of $100 is due on or before Mar. 1 and must be paid by the

automated clearing house debit or credit payment system through OPTins. This fee is reported on

the annual premium tax report.

§ 21.09.130; 3 Alaska Admin. Code 31.050

The continuation of certificate of authority fee is due on or before June 30 and must be paid by the

automated clearing house debit or credit payment system through OPTins. This fee is reported on

the annual premium tax report.

Retaliation—December 2023

Penalties:

§§ 21.09.210; 21.66.110

The late payment fee is $50 per month or part of a month plus 5% of the tax due each calendar

month or part of a month with a maximum late fee of $250 plus 25% of the tax due, and interest at

the rate of 1% per month or part of a month for the period the insurer fails to pay the premium tax.

If payment is not received by the automated clearing house payment method through OPTins, a

penalty of 25% of the tax due will be assessed, with a minimum of $100 and maximum of $2,000.

Suspension or revocation of certificate of authority if insurer fails to pay taxes, penalty or late

payment fee as required.

§ 21.09.200

The late filing of a statement or report in the form and location required by the director is subject

to a penalty of $100 for each day the filing is late.

Extensions:

No provision for extension.

Retaliatory Law:

§ 21.09.270

If taxes, licenses and fees in the aggregate and fines, penalties, deposit requirements, etc. imposed

on Alaska insurers or representatives is in excess of charges Alaska makes on similar insurers or

representatives, a retaliatory fee will be imposed. Does not apply to personal income taxes or to

ad valorem taxes on property or to special purpose assessments imposed in connection with other

than property insurance, except that deductions from premium taxes or other taxes otherwise

payable allowed on accounts of real estate or personal property taxes paid shall be taken into

consideration. A health care insurer may not include taxes, assessments, or other similar obligations

on health care insurance premiums received from the state, a municipality, a city or borough school

district, a regional educational attendance area, the University of Alaska or a community college

operated by the University of Alaska.

Retaliation—December 2023

FEES

The annual statement filing fee and the certificate of authority continuation fee are retaliated in the

aggregate with the other recurring fees and taxes on the premium tax report as well as filing fees for rate

and form filings paid to other states.

Insurers’ Fees:

3 Alaska Admin. Code 31.040 to 31.060

Certificate of authority:

Certificate of authority application, including a solicitation permit and issuance of

the certificate, if issued, a one-time fee of ........................................................................ $2,250

Annual continuation of certificate of authority ......................................................................... 2,250

Amendment to a certificate of authority ...................................................................................... 100

Amendment to the articles of incorporation ................................................................................ 100

Revised bylaws or amendments to bylaws .................................................................................. 100

Reinstatement of a certificate of authority ................................................................................... 500

Replacement of a lost certificate of authority ................................................................................ 25

Certificate of authority:

Application from a multiple employer welfare arrangement,

including the issuance of the certificate, if issued, a one-time fee of ................................. 2,000

Annual continuation of certificate of authority ......................................................................... 2,000

Annual statement:

Annual statement filing fee .......................................................................................................... 100

Solicitation permit:

Subsequent financing for domestic insurers ................................................................................ 100

Registration:

As an accredited reinsurance company ........................................................................................ 500

Review:

Of assuming reinsurance company for compliance with law ...................................................... 100

Holding company:

Form A filing acquisition of control of a merger with a domestic insurer................................ 2,000

Retaliation—December 2023

Miscellaneous Fees:

3 Alaska Admin. Code 31.040 to 31.060

Rating bureau:

Three-year license ................................................................................................................... $6,000

Surplus lines (applies only to alien insurers not on NAIC Quarterly IID Listing):

Filing of a certified annual financial statement by surplus lines insurer ...................................... 100

Application for registration of a surplus lines insurer on the division’s “white list” ................ 1,000

Annual renewal of “white list” registration ................................................................................. 500

Reinstatement late fee of a surplus lines insurer’s registration .................................................... 250

Risk retention and purchasing groups:

Initial registration of a risk retention group .............................................................................. 1,000

Annual continuation of a risk retention group ............................................................................. 200

Initial registration of a purchasing group ..................................................................................... 500

Annual continuation of a purchasing group ................................................................................. 200

Attorney-in-fact:

Initial application and annual renewal of a resident attorney-in-fact license ............................... 200

Initial application and annual renewal of a nonresident attorney-in-fact license ......................... 500

Joint title plant:

Initial application, including issuance of the certificate, if issued ............................................ 1,000

Annual continuation of certificate of authority ............................................................................ 600

Air Ambulance service provider:

Air ambulance service provider application fee ....................................................................... 1,000

Air ambulance service provider biennial renewal fee .................................................................. 200

Independent review organization:

Initial registration fee and biennial renewal few ....................................................................... 1,000

Miscellaneous services:

For issuing a certification ............................................................................................................... 25

For accepting service of process .................................................................................................... 25

For photocopies ....................... $0.25 per page if copied by division staff, otherwise $0.15 per page

Computer listings ........................................................................................................................... 25

Cassette tape or a computer disk ...................................................................................................... 5

Computer disk formatted for data submission ............................................................................... 25

Returned check fee ......................................................................................................................... 25

For any printed material not otherwise described in this section, director may charge the actual cost

of printing plus handling and postage.

Retaliation—December 2023

Producer Licensing Fees:

§§ 21.27.010; 21.27.025; 21.27.040; 21.59.140; 21.59.160; 3 Alaska Admin. Code 31.020 to 31.060

Producer Licenses (Biennial fee)

Individual

Firm

Resident

Nonresident

Resident

Nonresident

Insurance Producer or

Managing General Agent,

any line(s)

$75

Independent Adjuster

Surplus Lines Broker

300

Reinsurance

Intermediary Manager

Reinsurance

Intermediary Broker

Viatical Settlement Broker

100

Viatical Settlement

Representative

100

Viatical Settlement

Provider

300

1033 License Application

300

N/A

Third Party Administrator

300

Independent Portable

Electronics Adjuster

Motor Vehicle Service

Contract Provider

300

Motor Vehicle Service

Contract Administrator

Trainee Licenses

Individual

Resident

Nonresident

Trainee Independent

Adjusters

$75

N/A

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 21.27.010; 21.27.025; 21.27.040; 21.59.140; 21.59.160; 3 Alaska Admin. Code 31.020 to 31.060

(cont.)

Limited Licenses (Biennial fee)

Individual

Firm

Resident

Nonresident

Resident

Nonresident

Bail Bond

$75

Travel

Title

N/A

Motor Vehicle Rental

Agency

Credit

Crop

Portable Electronics

Limited Producer

Late fee for failure to timely notify director in writing within 30 days after a change in residence,

place of business, legal name, fictitious name or alias, mailing address, electronic mailing

address, telephone number, compliance office, any administrative action taken against the

licensee by a governmental agency of another state or by a governmental agency of another

jurisdiction, including FINRA sanction or arbitration proceedings (effective Oct. 16, 2016),

within 30 days after the final disposition of the action, and any criminal prosecution of the

licensee in this or another state or jurisdiction within 30 days after the date of filing of the

criminal complaint, indictment, information, or citation in the prosecution:

1—60 days late ............................................................................................................................ $50

61—120 days late ........................................................................................................................ 100

More than 120 days late ............................................................................................................... 200

Delayed renewal penalty to reinstate a license that has expired:

1—60 days overdue ..................................................................................................................... 100

More than 60 days overdue .......................................................................................................... 200

Reinstatement:

Of revoked license, if received within 6 months of revocation, application fee plus .................. 500

Miscellaneous licensing fees:

License amendment ......................................................................................................................... 0

Certification of license status ......................................................................................................... 25

Letter of clearance.......................................................................................................................... 25

Fingerprint processing fee ......................................................................................................... 48.25

(made payable to Alaska Division of Insurance when not paid through NIPR)

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 21.27.010; 21.27.025; 21.27.040; 21.59.140; 21.59.160; 3 Alaska Admin. Code 31.020 to 31.060

(cont.)

Application filing fee:

For third party administrators, reinsurance intermediary managers or brokers,

or managing general agents seeking exemption from the registration

or license requirement ......................................................................................................... $100

Additional filing fee if paper application received when filing can be

submitted electronically .......................................................................................................... 50

Continuing Education Fees:

Provider application fee ............................................................................................................... 200

Course application fee.................................................................................................................... 50

Provider renewal fee .................................................................................................................... 100

Course renewal fee ......................................................................................................................... 50

Course late roster filing fee .......................................................................................................... 250

Late issuance of certificate of course completion .......................................................................... 20

Course late renewal fee .................................................................................................................. 50

(in addition to the $50 renewal fee)

Provider late renewal fee ............................................................................................................... 50

(in addition to the $100 renewal fee)

Manual course review fee .............................................................................................................. 50

DEPOSITS

§§ 21.09.090; 21.66.010; 21.66.020; 21.85.030; 21.87.210

Most admitted insurers must have a deposit at least $300,000 with the director. Foreign insurers may

instead provide a certificate from the public official having supervision over them in any other state

with at least a $300,000 deposit. A title insurance company must have $300,000 plus $50,000 for

each state or territorial subdivision in which it becomes qualified to sell title insurance up to

$750,000. In addition, within 30 days after filing each annual statement, title companies shall deposit

10% of preceding year written premiums up to $50,000 in one year until the aggregate deposits of

$750,000 is reached at which point no further deposit will be required. Multiple Employer Welfare

Arrangements (MEWA) are required to deposit at least $200,000 with the director. Hospital/Medical

Service Corporations are required to have a minimum $100,000 surplus fund.

Retaliation—December 2023

CONTACT PERSON

Premium Tax and Producer Licensing

Rebecca Nesheim: (907) 465-2584; rebecca.nesheim@alaska.gov

Company Licensing

Jeffery Bethel: (907) 269-7919; jeffery.bethel@alaska.gov

Producer Licensing

Kayla Erickson: (907) 465-2545; kayla.eric[email protected]

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

ARIZONA

→ Arrow indicates an update for 2023

EDITOR’S NOTE

Arizona Revised Statutes (“ARS”) are accessible from the “Legislative Council” menu on the Arizona

State Legislature website (www.azleg.gov). Most insurance laws are contained within Title 20.

Arizona Administrative Code (“AAC”) is accessible from the “Rules” menu on the Arizona Secretary of

State website (www.azsos.gov). Most insurance-related rules are contained within Title 20, Chapter 6.

PREMIUM TAX

Tax forms and instructions are available from the Department of Insurance “Taxes” web page

(https://insurance.az.gov/insurers/taxes).

Premium Tax Base:

ARS § 20-206(B) Previously Authorized Insurers

An insurer no longer transacting new business in Arizona is subject to premium tax requirements

but does not need a certificate of authority to collect premiums for, or to service, policies

remaining in force for residents or risks residing in Arizona.

§ 20-224 Authorized Insurers

Total direct premium income including policy membership and other fees and all other

considerations for insurance from all classes of business whether designated as a premium or

otherwise received by the insurer during the preceding calendar year on account of policies and

contracts covering property, subjects or risks located, resident or to be performed in Arizona,

after deducting applicable cancellations, returned premiums, the amount of reduction in or refund

of premiums allowed to industrial life policyholders for payment of premiums direct to an office

of the insurer and all policy dividends, refunds, savings coupons and other similar returns paid or

credited to policyholders within Arizona and not reapplied as premiums for new, additional or

extended insurance. No deduction shall be made of the cash surrender values of policies or

contracts.

§ 20-837 Hospital, Medical, Dental and Optometric Service Corporations

Net premiums received to effect or maintain subscription contracts.

§ 20-1010 Prepaid Dental Plan Organizations

Prepaid net charges received from members.

Retaliation—December 2023

Premium Tax Base (cont.)

§ 20-1060; AAC R20-6-405(E)(14) and (L) Health Care Services Organizations

Net charges received from enrollees. Net charges are the total of all sums prepaid by or for all

enrollees, less approved refunds, adjustments and deductions, as consideration for health care

services of a health care plan under an evidence of coverage.

§ 20-1097.07 Prepaid Legal Insurance Corporations

Taxes as prescribed by § 20-224.

§ 20-2403(C) Foreign Risk Retention Groups

Premiums of direct business for risks resident or located in Arizona on the same basis as a foreign

admitted insurer.

§ 23-961(G) Workers’ Compensation Insurance

Premiums collected or contracted for during the preceding year ending Dec. 31 less deductions

for cancellations, returned premiums, policy dividends, or refunds paid or credited to

policyholders that are not reapplied for new, additional or extended insurance. Paid to the Arizona

Industrial Commission in lieu of insurance premium tax.

Tax Rate:

§ 20-224

“Base rate” applicable to authorized insurers and formerly authorized insurers subject to

§ 20-206(B), except as otherwise specified.

CY 2015

and before

CY 2016

CY 2017

CY 2018

CY 2019

CY 2020

CY 2021

& after

2.00%

1.95%

1.90%

1.85%

1.80%

1.75%

1.70%

In lieu of base rate, 2.2% for fire insurance premiums, except 0.66% for fire insurance premiums

on property located in an incorporated town or city certified by the state fire marshal pursuant to

§ 9-951, subsection B, as procuring the services of a private fire company. Since Jan. 1, 2007,

Carefree and Fountain Hills have been the only incorporated cities or towns procuring services of

a private fire company.

“Fire insurance” consists of 100% of fire, 40% of commercial multiple peril non-liability

(property), 35% of homeowners’ multiple peril, 25% of farm owners’ multiple peril and 20% of

allied lines.

0% of annuity considerations

2.00% disability

Retaliation—December 2023

Tax Rate (cont.)

§ 20-224.01

0.4312% additional premium tax on insurance covering vehicles (in addition to “base rate”)

“Vehicles” means a device in, on or by which a person or property is or may be transported or

drawn on a public highway, excluding electric bicycles, electric miniature scooters, electric

standup scooters, devices moved by human power; devices used exclusively on stationary rails or

tracks; personal delivery devices; scrap vehicles; or personal mobile cargo carrying devices. See

§ 28-101.

§ 20-837

2% hospital, medical, dental & optometric service corporation

§ 20-883

0% fraternal benefit societies

§ 20-1010

2% prepaid dental plan organization

§ 20-1060

2% health care services organization

§ 20-1097.07

Base rate prescribed under § 20-224 for prepaid legal insurance corporation

§ 20-1566

0% title insurer premium tax. Title insurers pay corporate income tax to Arizona Department of

Revenue (www.azdor.gov) in lieu of insurance premium tax, but are subject to retaliation

(payable to the Arizona Department of Insurance) to the extent the domicile’s premium tax rate

multiplied times the insurer’s Arizona risk premiums is greater than the net income tax the insurer

paid to the Arizona Department of Revenue.

§ 20-2304(J)

0% for accountable health plan net premiums received for health benefit plans issued to small

employers. See definitions for “accountable health plan,” “health benefits plan” and “small

employer” in § 20-2301(A).

§ 20-2403(C)

Risk retention group same as for a foreign admitted insurer.

Retaliation—December 2023

Tax Rate (cont.)

→ §§ 23-961(G); 23-1065(A) and (F)

Workers’ compensation insurance premium tax assessments, payable to the Industrial

Commission of Arizona (https://www.azica.gov) consisting of the following components:

Description

CY 2023

Rate

CY 2022

Rate

CY 2021

Rate

CY 2020

Rate

CY 2019

Rate

Administrative Fund tax § 23-961(G)

2.00%

1.75%

“Special Fund tax” to pay for

vocational rehabilitation for persons

sustaining industrial injuries

§ 23-1065(A)

0.00%

“Apportionment tax” to pay for

vocational rehabilitation for persons

sustaining industrial injuries

§ 23-1065(F)

0.00%

TOTAL

2.00%

1.75%

Other Taxes and Assessments:

§ 20-226 Insurers

Taxes paid pursuant to § 20-224 are in lieu of all other demands for state, county, district,

municipal and school taxes, licenses and excises except for fees prescribed in ARS Title 20; taxes

on real and tangible personal property located in Arizona; and state, county, city or town

transaction privilege and use taxes.

§ 20-1566 Title Insurers

Income tax paid by title insurers pursuant to § 20-1566(A) in lieu of all other demands for state,

county, district, municipal and school taxes, licenses and excises except for fees prescribed in

ARS Title 20, Chapter 1, Article 2; and taxes on real and tangible personal property located in

Arizona. Title insurers are subject to retaliation per § 20-230.

→ § 20-466(J) Fraud Unit Assessment

The director shall annually assess each insurer, hospital service corporation, health care services

organization, prepaid dental plan organization and service company authorized to transact

business up to $1,050 for the administration and operation of the fraud unit, which may be

adjusted annually. Assessments are levied July of each year.

2023

Per-Insurer

Amount

2022

Per-Insurer

Amount

2021

Per-Insurer

Amount

2020

Per-Insurer

Amount

2019

Per-Insurer

Amount

$1,050.00

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ § 20-666 Property and Casualty Insurance Guaranty Fund

The Fund board may assess each member insurer up to 1% of direct written premiums for kinds

of insurance in account with insolvency and not more than $200 per year for operating expenses

of the board. The retaliation provisions of § 20-230 do not apply to assessments on or credits to

insurers for the payment of claims of policyholders of insolvent insurers.

2023

Aggregate

Amount

2022

Aggregate

Amount

2021

Aggregate

Amount

2020

Aggregate

Amount

2019

Aggregate

Amount

$0.00

→ § 20-686 Life and Health Insurance Guaranty Fund

The fund board may assess each member insurer, separately for each account, a Class A

assessment for the purpose of meeting administrative costs and other general expenses not related

to a particular impaired insurer and a Class B assessment to carry out the powers and duties of the

fund with regard to an impaired insurer. The total of all assessments upon a member insurer for

each account shall not in any one calendar year exceed 2% of premiums in Arizona on the

policies covered by the account. The retaliation provisions of § 20-230 do not apply to

assessments on or credits to insurers for the payment of claims of policyholders of insolvent

insurers.

2023

Aggregate

Amount

2022

Aggregate

Amount

2021

Aggregate

Amount

2020

Aggregate

Amount

2019

Aggregate

Amount

$0.00

$6,389,000

$5,435,000

$7,500,000

$16,000,000

→ § 20-2201(D) Liability Insurance Voluntary Plan Administration Assessment

The director may annually assess insurers authorized to transact liability insurance up to $200 for

the costs of administering the voluntary plan.

2023

Per-Insurer

Amount

2022

Per-Insurer

Amount

2021

Per-Insurer

Amount

2020

Per-Insurer

Amount

2019

Per-Insurer

Amount

$0.00

→ § 20-2212(B) Liability Insurance Joint Underwriting Association; Deficit Assessment

The JUA may assess each member up to 1% of its net direct premium in Arizona attributable to

the line of insurance for which the deficit assessment is made.

2023

Aggregate

Amount

2022

Aggregate

Amount

2021

Aggregate

Amount

2020

Aggregate

Amount

2019

Aggregate

Amount

$0.00

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ § 20-2213(A) Liability Insurance Joint Underwriting Association; Initial Assessment

An initial assessment of up to $500 may be imposed upon each member to defray the initial

operating expenses. The initial assessment may be refunded by the association.

2023

Aggregate

Amount

2022

Aggregate

Amount

2021

Aggregate

Amount

2020

Aggregate

Amount

2019

Aggregate

Amount

$0.00

§ 20-2541(1) Health Care Appeals Fund; Single Fee

The director may assess each authorized health care insurer a single fee of not more than $200 per

insurer. This assessment was only levied at the outset of the department’s health care appeals

program in Calendar Year 2000.

→ § 20-2541(2) Health Care Appeals Fund Annual Assessment

The director may assess up to $200 each year for administrative costs associated with

implementing and maintaining the external independent review process, including processing and

payment of claims through the health care appeals fund.

2023

Per-Insurer

Amount

2022

Per-Insurer

Amount

2021

Per-Insurer

Amount

2020

Per-Insurer

Amount

2019

Per-Insurer

Amount

$200.00

→ § 41-3451(J) Automobile Theft Authority Fund; Semiannual Fees

Each insurer issuing motor vehicle liability insurance policies shall pay to the Arizona

Automobile Theft Authority a semiannual fee of 50 cents per vehicle insured under a motor

vehicle liability insurance policy issued by the insurer. The fee shall be fully earned and

nonrefundable at the time the insurer collects the premium for the motor vehicle liability

insurance policy.

Insurers must transmit fees to the Arizona Automobile Theft Authority by Jan. 31 for vehicles

insured under policies issued during the immediately preceding July 1 through Dec. 31, and by

July 31 for vehicles insured under policies issued during the immediately preceding Jan. 1

through June 30.

2023

Per-Vehicle

Amount

2022

Per-Vehicle

Amount

2021

Per-Vehicle

Amount

2020

Per-Vehicle

Amount

2019

Per-Vehicle

Amount

$0.50

Retaliation—December 2023

Exclusions and Deductions:

§ 20-224 Annuities and Unabsorbed Premium Deposit

Considerations received on annuity contracts, as well as the unabsorbed portion of any premium

deposit, shall not be included in total direct premium income, and neither shall be subject to tax.

§ 20-837 Service Corporation Tax Exemptions

No premium tax applies to premiums a service corporation receives as administrative or fiscal

agent for national, state or municipal government or any political subdivision thereof, or to

premiums received from funds of national, state or municipal government or any political

subdivision thereof.

§ 20-883 Fraternal Benefit Societies

Fraternals are exempt from paying premium taxes (but foreign/alien fraternals are subject to

retaliation).

§ 20-1060(C) Medicare Payments

Payments received by health care services organizations from the secretary of health and human

services pursuant to Medicare contracts are not taxable.

§ 20-2304(J) Accountable Health Plan Small Group Business

Premiums received for health benefits plans issued to small employers by accountable health

plans are exempt from tax. See definitions for “accountable health plan,” “health benefits plan”

and “small employer” in § 20-2301(A).

Credits:

§§ 20-224.03; 41-1525 Quality Jobs Tax Credit

An insurer located in Arizona that makes required levels of capital investment and creates the

required number of new qualified employee positions is allowed a tax credit against the premium

tax for net increases in full-time employees hired in qualified employment positions (“QEPs”) as

certified by the Arizona Commerce Authority. The tax credit is $3,000 for each full-time

employee hired in a QEP in the first year or partial year of employment. A credit is allowed for

employment in the second and third year only for QEPs for which a credit was claimed and

allowed in the first year. To qualify for a credit, the insurer must file information by or before

deadlines specified in §§ 20-224.03(J) and 41-1525. If the allowable tax credit exceeds the state

premium tax liability, the amount of the claim not used as an offset may be carried forward as a

tax credit against the subsequent years’ premium tax liability for a period not exceeding five

taxable years. Credits cannot be applied to taxes due on fire insurance premiums or any additional

tax due on vehicle insurance premiums. An insurer that claims a tax credit against state premium

tax liability is not required to pay any additional retaliation under § 20-230 as a result of

claiming the tax credit.

Retaliation—December 2023

Credits (cont.)

§ 20-224.04 Affordable Housing Premium Tax Credit

A tax credit is allowed against the premium tax liability incurred by a health care insurer pursuant

to §§ 20-224, 20-837, 20-1010 or 20-1097.07 if the Arizona Department of Housing issues an

eligibility statement for a qualified project. Unused credits may be carried forward for a period of

five tax years. An insurer that claims a tax credit against state premium tax liability is not

required to pay any additional retaliation under § 20-230 as a result of claiming the tax credit.

§ 20-224.05 Premium Tax Credit for Health Insurance Certificates Submitted by Qualified Persons

Annual tax credit allowed against the premium tax liability incurred by a health care insurer

pursuant to §§ 20-224, 20-837 or 20-1060 for an individual or a small business that received a

certificate from the department of revenue pursuant to § 43-210 and obtained health insurance

from a health care insurer within 90 days after the date the certificate was issued. Eligibility for

the credit is based on the period during which health insurance coverage became effective (not

the date the Arizona Department of Revenue issued the certificate). An insurer cannot claim

credit associated with tax-exempt premium. An insurer is not required to pay any additional

retaliation under § 20-230 as a result of claiming the tax credit for health insurance certificates.

For coverage issued to an individual, the amount of the credit is the lesser of:

$1,000 for coverage on a single person,

$500 for coverage on a child, or

$3,000 for family coverage, or

50% of the health insurance premium.

For coverage issued to a small business, the amount of the credit is the lesser of:

$1,000 for coverage on a single person, or

$3,000 for each employee who elects family coverage, or,

50% of the health insurance premium.

§ 20-224.06 Premium Tax Credit for Contributions to School Tuition Organization

A credit is allowed against the premium tax liability incurred by an insurer pursuant to

§§ 20-224, 20-837, 20-1010, 20-1060 or 20-1097.07 for the insurer’s voluntary cash contributions

made during the tax year to a school tuition organization. The credit is only available for insurer

contributions for the tax year that are preapproved by the department of revenue pursuant to § 43-

1183(D). Procedures, conditions, limitations, definitions and other requirements are prescribed in

§ 43-1183. Unused credits may be carried forward for a period of five tax years. A credit is not

allowed if the insurer designates the contribution for the direct benefit of any specific student. An

insurer that claims a tax credit against state premium tax liability is not required to pay any

additional retaliation under § 20-230 as a result of claiming the tax credit.

Retaliation—December 2023

Credits (cont.)

§ 20-224.07 Premium Tax Credit for Contributions to School Tuition Organization (Displaced Students

or Students with Disabilities)

A credit is allowed against the premium tax liability incurred by an insurer pursuant to

§§ 20-224, 20-837, 20-1010, 20-1060 or 20-1097.07 for the insurer’s voluntary cash contributions

made during the tax year to a school tuition organization. The credit is only available for insurer

contributions for the tax year that are preapproved by the department of revenue pursuant to § 43-

1184(D). Procedures, conditions, limitations, definitions and other requirements are prescribed in

§ 43-1184. Unused credits may be carried forward for a period of five tax years. A credit is not

allowed if the insurer designates the contribution for the direct benefit of any specific student. An

insurer that claims a tax credit against state premium tax liability is not required to pay any

additional retaliation under § 20-230 as a result of claiming the tax credit.

§ 20-674 (B) and (F) Property and Casualty Guaranty Fund Assessments Offsets

Guaranty fund assessments may be offset against premium tax at the rate of 20% per year for five

years beginning with the calendar year in which the assessment was collected. In no event may

the total amount of the offset exceed 100% of each assessment. There is no carry forward for

allowable offsets that exceed the annual tax liability. The retaliation provisions of § 20-230 do

not apply to assessments on or credits to insurers for the payment of claims of policyholders of

insolvent insurers. No assessment has been levied in the current calendar year or the

preceding five calendar years; therefore, no credit currently applies.

→ § 20-692 (B) and (E) Life and Health Guaranty Fund Assessment Offsets

Guaranty fund assessments may be offset against premium tax at the rate of 20% per year for five

years beginning with the calendar year in which the assessment was collected. In no event may

the total amount of the offset exceed 100% of each assessment. There is no carry forward for

allowable offsets that exceed the annual tax liability. The retaliation provisions of § 20-230 do

not apply to assessments on or credits to insurers for the payment of claims of policyholders of

insolvent insurers.

The assessments approved/levied by the Board for each year totaled:

• $7 million for 2017

• $9 million for 2018

• $16 million for 2019

• $7.5 million for 2020

• $5.4 million for 2021

• $6.3 million for 2022

• There will be no new offset for 2023

Retaliation—December 2023

Credits (cont.)

§ 20-2212(C) Joint Underwriting Association Deficit Assessment Tax Credits

Any member of the association subject to a deficit assessment pursuant to § 20-2212(B) in any

one calendar year shall be allowed a premium tax credit beginning in the following calendar year,

at the rate of 20% per year for five years. No assessment has been levied during the past six

years; therefore, no credit currently applies.

Payment Due Dates:

§§ 20-224; 20-837; 20-1010; 20-1060; 20-1097.07; 20-2403

Annual tax report and payment due Mar. 1.

§ 20-224(F)

Any insurer required to pay a tax of $50,000 or more on net premiums received during the

preceding calendar year, shall pay 15% of the amount paid or required to be paid during the

preceding calendar year, on or before the 15th of each month from Mar. through Aug. (hereinafter

“installment tax payments”).

§ 20-224(K)

Beginning Jan. 1, 2018, the director may require that premium tax reports and payments be

submitted electronically. If the director requires electronic submission, the director shall include

on the Department’s website a list of one or more acceptable third-party services through which

an insurer may submit reports and payments.

Accordingly, beginning Jan. 1, 2018, the director requires insurers to submit tax reports and

payments, including installment tax payments, using the NAIC OPTins system, whether directly

at www.optins.org, or through an authorized business partner of the NAIC.

This provision does not apply to title insurers, which are encouraged but not required to submit

retaliation reports and payments using the NAIC OPTins system.

§ 20-225

Late payment of tax is subject to a civil penalty not to exceed the greater of $25 or 5% of the

amount paid late plus interest at the rate of 1% per month from the date the tax was due. The

director shall revoke the certificate of authority for failure to pay tax for more than 30 days after it

was due.

No penalty applies with respect to any payment of tax or interest that is late due to delays caused

by a third-party service designated by the director pursuant to § 20-224(K). Specifically, this

means that an insurer will not be subject to penalty if the NAIC OPTins system is unavailable to

accept tax reports and payments on the Mar. 1 due date, and the date on which any penalty or

interest is based will be deferred until the day after the NAIC OPTins system becomes available.

Retaliation—December 2023

Extensions:

No specific provision for extension.

Retaliatory Law:

§ 20-230

When by or pursuant to the laws of any other state any premium or income or other taxes, or any

fees, fines, penalties, licenses, deposit requirements or other material obligations are, in the

aggregate, in excess of those Arizona applies to similar insurers domiciled in other states, a

retaliatory amount is due. Any tax, license or other obligation imposed by any city, county or

other political subdivision is deemed to be imposed by the state. Does not apply to ad valorem,

taxes on real or personal property, or personal income taxes or to assessments on or credits to

insurers for the payment of claims of policyholders of insolvent insurers. Does not apply to

foreign/alien insurers whose domicile will not impose retaliatory taxes on Arizona insurers or

provides an exemption from retaliatory taxes on a reciprocal basis to insurers that are domiciled

in Arizona and doing business in the other state or country (Hawaii, Massachusetts, Minnesota,

New York and Rhode Island). AAC R20-6-205 prescribes the method and administration of the

addition to the rate of tax for calculation of the burden of any tax, license or other obligation

imposed by any city, county or other political subdivision of a state or foreign country on Arizona

insurers on an aggregate statewide or countrywide basis.

The Arizona Department of Insurance makes available on its Internet website an Arizona

Retaliatory Guide, which describes the specific calculations and entries insurers from each

domicile are expected to make on the retaliation portion of their Arizona insurance premium tax

filings.

§ 20-1566 Taxation of Title Insurers

The provisions of § 20-230 shall operate to require foreign title insurers to pay only the amount of

net premium tax that is in excess of the net income tax actually paid to Arizona for the same

calendar year by the title insurer.

Retaliation—December 2023

Retaliatory Law (cont.)

AAC R20-6-205 Local or Regional Retaliatory Tax Information

For each foreign country or other state having one or more local or regional tax on Arizona

domestic insurers, the department of insurance shall calculate on a statewide or foreign

countrywide basis an addition to the rate of tax. The department shall compute the rate of tax

payable by Arizona life insurers separately from the rate of tax payable by other Arizona insurers.

The addition to the rate of tax payable by each category of Arizona domestic insurers shall be the

quotient of the aggregate local or regional taxes reported as paid to the foreign country or other

state by domestic insurers in each category for the calendar year covered by the premium tax and

fees report divided by the aggregate statewide or foreign countrywide premiums taxed under the

premium taxing statute of the other state or foreign country reported by domestic insurers in each

category for the calendar year covered by the premium tax and fees report. Each foreign or alien

insurer domiciled in a foreign country or other state for which the department publishes an

addition to the rate of tax shall include in the “State or Country of Incorporation” column of its

retaliatory taxes and fees worksheet for the calendar year covered by its premium tax and fees

report an amount equal to the total premiums received in Arizona that would be taxed under the

laws of the domiciliary jurisdiction, as reported in the “State or Country of Incorporation” column

of its premium tax and fees report multiplied by the applicable addition to the rate of tax

published by the department for the calendar year covered by the insurer's premium tax and fees

report.

FEES

§ 20-167(A)

Fees are nonrefundable upon receipt.

§ 20-167(E)

Fees are subject to revision effective July 1 if prior fiscal-year fees are not between 95% and

110% of the current fiscal year appropriated budget. Successive session laws since 2005 have

suspended changes to the fee schedule.

Retaliation—December 2023

Insurers’ Fees:

§§ 20-167(A); 10-122; 20-159

Fee Category

Fees effective

through

June 30, 2024

Certificate of authority issuance (UCAA expansion applications):

Fraternal benefit society

$30

Medical or hospital service corporation, prepaid dental, health care

services organization, or domestic benefit insurer

Mechanical reimbursement reinsurer

300

All other insurers

195

Original charter documents, articles of incorporation, bylaws, record of

organization

Articles of incorporation and all amendments (not applicable to reciprocal

insurance exchanges): Filed with the Arizona Corporation Commission

Both ARS §§ 20-167(A) and 20-122(A) apply

175

Insurance Examiners’ Revolving Fund deposit (refunded upon termination of

the certificate of authority). ARS § 20-159(E)

100

Certificate of authority issuance (UCAA amendment applications):

Fraternal benefit society

Medical or hospital service corporation, prepaid dental, health care

services organization, or domestic benefit insurer

Mechanical reimbursement reinsurer

300

All other insurers

195

Amended charter document filing

Articles of incorporation and all amendments (not applicable to reciprocal

insurance exchanges): Filed with the Arizona Corporation Commission

175

Certificate of authority renewal:

Fraternal benefit society

Medical or hospital service corporations, prepaid dental, health care

services organization, or domestic benefit insurer

Domestic stock life and disability insurers, only or either

1,500

Domestic life, disability, or life and disability reinsurer

4,500

Unaffiliated credit life and disability reinsurer

4,500

Mechanical reimbursement reinsurer

4,500

All other insurers

135

Annual statement filing:

Exempt insurer transacting life/disability or annuity business per § 20-

401.05

87.50

All others

300

Retaliation—December 2023

Insurers’ Fees (cont.)

Appointments and terminations, § 20-230(A)

Arizona does not charge fees for appointments or terminations. Insurers domiciled in states that

charge appointment fees, appointment renewal fees or termination fees must report for retaliation

purposes the number of Arizona-licensed insurance producers the insurer began utilizing, continued

to utilize or ceased utilizing during the year, and must include in the insurer’s retaliation calculation

the fees that the insurer’s domicile would have charged an Arizona insurer for the appointments,

appointment renewals and appointment terminations for those insurance producers.

Captive insurers, AAC R20-6-2002

Fee Category

Fees effective

through

June 30, 2024

Captive insurer certificate of authority issuance:

Captive insurer

$1,000

Additional fee for each protected-cell participant contract

1,000

Captive insurer certificate of authority renewal:

Captive insurer

5,500

Additional fee for each protected-cell participant contract

2,500

Captive insurer certificate of authority amendment

200

Retaliation—December 2023

Producer Licensing Fees:

Licensee is responsible for payment, but anyone (including an insurer) is allowed to pay the fee for the

licensee. Insurers domiciled in states that require the insurer to pay producer license and renewal fees

must include the product of the number of Arizona-licensed insurance producers authorized to offer the

insurer’s products in Arizona times the license/renewal fee that the insurer’s domicile would charge.

Fee Category

Fees effective

through

June 30, 2024

Licenses for insurance professionals:

Surplus lines broker’s license, license term of 2 to 4 years

§§ 20-167(A)(10)(a), 20-411(F)

$1,000

Surplus lines broker’s license, license term of less than 2 years

§§ 20-167(A)(10)(a), 20-411(F)

500

Life settlement broker’s license, license term of 2 to 4 years

§ 20-3202(F)

500

Life settlement broker’s license, license term of less than 2 years

§ 20-3202(F)

250

All other licenses, quadrennially

§ 20-167(A)(10)(a)

120

Authority to sell insurance using mechanical vending machines

§ 20-167(A)(4)

Late renewal fee

§ 20-289(E)

100

Fingerprint card processing fee (applicable to Arizona residents)

§ 41-1750(L)*

*Subject to change at any time by the Federal Bureau of Investigation.

Letter of certification/clearance

§ 20-167(A)(11)

Pre-license examinations:

The State of Arizona has contracted with Prometric (www.prometric.com/Arizona) to administer

insurance examinations to prospective license candidates. The fees for prelicense examinations are

payable directly to Prometric. § 20-167(E).

Retaliation—December 2023

Producer Licensing Fees (cont.)

Miscellaneous:

Statute and Description of Fee

Fees effective

through

June 30, 2024

Certificate of registration as an administrator

§ 20-167(A)(3)

$195

Service company permit

§ 20-167(A)(5)

300

Application for motor vehicle service contract program approval

§ 20-167(A)(6)

300

Life care contract application or annual report

§ 20-167(A)(7)

450

Fee accompanying service of process upon director

§ 20-167(A)(11)

Certificate of director, under seal

§ 20-167(A)(11)

Copy of document filed in director’s office, per page, noncommercial

§ 20-167(A)(11)

0.60

Copy of filed document, commercial purpose, per page

§ 39-121.03(A)

1.55

Life settlement provider certificate of authority (perpetual)

§ 20-3202(B)

1,000

Retaliation—December 2023

DEPOSITS

Citation

Requirements for Domestic Insurers

Requirements

for Foreign

Insurers

§ 20-213

All Insurers

Except as

Otherwise

Specified

Amount: $500,000 certified by official in possession of

assets.

Stock insurer: Cash or securities in an amount not less than

the minimum required capital stock.

Mutual or reciprocal insurer: Not less than the minimum

required basic surplus.

Life and disability insurer: Cash, surety bonds, or securities

equal to the greatest of minimum required capital stock or

minimum required basic surplus, 2/3 of the aggregate

reserves, or 25% of the earned premium of the prior year.

In lieu of deposit,

director shall

accept proper

certificate from

any other state

that like deposit is

being maintained.

§ 20-828

Service

Corporation

Amount: $200,000 if newly formed; in each succeeding year,

an additional 2% of the gross subscriptions collected during

the preceding year until deposit reaches $500,000.

Form: Certificate of deposit or eligible book-entry securities.

No provision

§ 20-1005

Prepaid

Dental Plan

Organization

Amount:

5,000 or fewer members: $25,000

5,001 to 7,500 members: $30,000

7,501 to 10,000 members: $50,000

10,001 to 15,000 members: $75,000

15,001 to 20,000 members: $100,000

20,001 to 25,000 members: $125,000

25,001 to 30,000 members: $150,000

30,001 to 40,000 members: $175,000

Over 40,000 members: $200,000

Does not apply when funded by a federal, state or municipal

government or political subdivision or body with evidence of

operational commitments equivalent to the required deposit.

Same as for

domestics

§ 20-1097.03

Prepaid

Legal

Amount: $500,000

Cash, eligible securities or surety bond.

No provision

§ 20-1563

Title

Amount: $250,000 plus $50,000 for each state or territory

other than state of domicile in which it shall be qualified to

engage in business, up to $750,000.

Same as for

domestics

§ 20-1722

Health care

insurers

Amount: $300,000 No provision

Retaliation—December 2023

→ CONTACT PERSON

Forms and Instructions for Insurance Premium Taxes, Tax/Fee Retaliation, Credits

Loretta Moncibaez, Tax Revenue Auditor

→ (602) 364-2713; Taxu[email protected]

Insurer Admission Application Requirements, Fees and Deposits; Certificate of Authority

Amendment Requirements; Charter File Amendments; Trust Deposit Procedures and Forms

Cary Cook, Assistant Financial Compliance Officer

(602) 364-3986; cary.cook@difi.az.gov

Annual Statement Filing Instructions and Fees

Tony McCormack, Insurance Compliance Analyst

(602) 364-3245; tony.mccormack@difi.az.gov

Insurer Assessments

Mary Jordan, Business Services Supervisor

(602) 364-2459; mary.jord[email protected]

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

ARKANSAS

→

Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Ark. Code Ann. §§ 26-57-603; 26-57-604

Total direct premium including policy, membership and other fees minus dividends and similar

returns paid or credited to policyholders other than as to life insurance, returned premiums, and

other reductions. Considerations for annuity contracts shall not be included and are not subject to

tax. Wet marine and foreign trade insurance are taxed differently.

Tax Rate:

§ 26-57-603(d)

Authorized and Unauthorized Carriers, Domestic, Alien, and Foreign 2.5%

§ 23-94-210(b)

Risk retention groups 4%

§ 26-57-603(f)(1)

Risk-Based Provider Organizations 2.5% of global payments

Other Taxes and Assessments:

§ 23-63-1614 Captive Insurers

Direct written premiums:

0.250% on the first $20 million

0.150% on the next $20 million

0.050% on each dollar thereafter.

Reinsurance:

0.225% on the first $20 million of assumed reinsurance premiums

0.150% on the next $20 million

0.050% on the next $20 million

0.025% on each dollar thereafter.

Total tax paid by a captive insurance company shall not exceed $100,000 in any year. Minimum

tax is $5,000. Captive insurance companies under common ownership and control are taxed as if

single captive insurance company as defined by § 23-64-1614(g).

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 26-57-605(b) Wet Marine and Foreign Trade Tax

0.75% of gross underwriting profit instead of premium tax.

§§ 26-54-101 to 26-54-114 Corporate Franchise Tax

Life, fire, accident, surety, liability, steam boiler, tornado, health, or other insurer

if capital stock of less than $500,000 ............................................................................... $300

if capital stock of $500,000 or more .................................................................................. 400

Legal reserve mutual insurance corporation

if assets of less than $100,000,000 ..................................................................................... 300

if assets of $100,000,000 or more ...................................................................................... 400

Mutual assessment insurance corporation.................................................................................... 300

Franchise tax paid to Arkansas Secretary of State May 1.

→ §§ 26-51-205; 26-51-303 Corporation Income Tax

Domestic life and health insurance companies, farmers or/other mutual hail, cyclone or fire

insurance companies, fraternal benefit societies, and foreign insurers are exempt from taxation

under this provision. Other insurers pay on entire net income on the following basis:

First $3,000 net taxable income

Next $3,000 net taxable income

Next $5,000 net taxable income

Next $14,000 net taxable income

Net income in excess of $25,000

5.3%**

**Effective August 1, 2023, net income in excess of $25,000 will be taxed at 5.1%.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 23-61-703; Ins. Rule & Reg. 56 The State Insurance Department Trust Fund Fee, The Company

Financial Regulatory Fee (“CFRF”)

All licensed insurers, including reinsurers and stock and mutual companies, HMOs, fraternal,

hospital and medical service corporations, stipulated premium insurers and farmers’ mutual aid

associations shall pay the Companies Financial Regulation Fee (CFRF) based on direct premiums

and co-payments written in Arkansas during preceding year. Excludes surplus lines insurers, risk

retention groups, purchasing groups and auto clubs. Due June 1st or on date established by rule of

commissioner.

Direct Written Premium

Fee

$500

1–499,999

750

500,000–2,499,999

1,000

2,500,000–4,999,999

2,500

5,000,000 –7,499,999

5,000

7,500,000 –9,999,999

7,500

10,000,000–19,999,999

10,000

20,000,000–29,999,999

12,000

30,000,000–49,999,999

15,000

50,000,000–74,999,999

17,500

75,000,000–99,999,999

20,000

100,000,000+

25,000

In no event shall the annual financial regulatory CFRF fee, imposed in this section and imposed

to support the maintenance and operation of the Arkansas Insurance Department exceed $25,000

for any one insurer or reinsurer in any one year.

§ 23-100-104 The State Insurance Department Criminal Investigation Division (CID) Antifraud

Assessment under Insurance Department Rule and Regulation No. 5

All licensed insurers, including stock and mutual insurance companies, reinsurers, health

maintenance organizations, fraternal benefit societies, hospital and medical service corporations,

stipulated premium insurers, farmers’ mutual aid associations and prepaid legal insurers pay an

assessment, which shall be based on the direct premiums and annuity considerations from or in

the state of Arkansas. Approved but nonadmitted surplus line insurers and registered risk

retention groups are exempt. Assessment is due by June 1. Pursuant to

§ 23-100-102(a)(2), failure to pay in a timely manner subjects the entity to a $100 a day penalty;

for good cause shown, the commissioner may grant an extension of time to pay the assessment.

(cont.)

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 23-100-104 The State Insurance Department Criminal Investigation Division (CID) Antifraud

Assessment under Insurance Department Rule and Regulation No. 5 (cont.)

The antifraud assessment shall be determined and paid in accordance with the following

schedule:

Arkansas Antifraud Premiums Assessment

$0–$2,499,999

$400

2,500,000–4,999,999

600

5,000,000–7,499,999

650

7,500,000–9,999,999

700

10,000,000–19,999,999

750

20,000,000–29,999,999

800

30,000,000–49,999,999

850

50,000,000–74,999,999

900

75,000,000–99,999,999

950

100,000,000+

1,000

§ 23-75-119(a) Hospital and Medical Service Corporations’ Privilege Tax On Premiums

The tax rate is 2.5% of net direct written premiums for the year ending Dec. 31 payable annually

on Mar. 1.

→ § 23-88-306 Arkansas Rural Risk Underwriting Association

Insurers writing property insurance may be assessed up to 2% of premium to cover losses of the

association. In addition, the commissioner shall make a yearly assessment, if needed, of up to

$200 per insurer to cover the costs of mailing of fire department renewal notices. An assessment

is required for the year 2023 and is due by December 31, 2023. AID Bulletin No. 15-2023

(9.27.2023).

§ 26-57-614(b) Fire Protection Premium Tax Fund

Additional 0.5% premium tax on net direct written premiums for coverages upon real and

personal property including fire, allied lines, farm owner and homeowner multiple peril, vehicle

physical damage, vehicle collision, or any combination thereof. Collected in same manner and at

same time as regular premium tax. Also applies to formerly authorized insurers with direct

premiums written in Arkansas.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§§ 11-9-303; 11-9-306; 26-57-603; 26-57-604 Workers’ Compensation Insurance Tax

Each carrier writing compensation insurance shall pay an additional tax not to exceed 3% for

workers’ compensation insurance written in the state, in addition to the primary 2.5% premium

tax. The Arkansas Workers’ Compensation Commission (“AWCC”) shall set the rate yearly. The

tax shall be collected by and remitted to the AWCC by or before Mar. 1 or as specified by

AWCC. Contact the Workers’ Compensation Commission at http://www.awcc.state.ar.us/ for the

rates on the Workers Compensation Administrative Fund, the Second Injury Trust Fund, and the

Death and Permanent Disability Trust Fund.

§ 23-90-112 Property and Casualty Guaranty Fund Assessment

The guaranty fund may assess up to 2% of each insurers’ net direct written premiums for

preceding calendar year. Fund authorized to assess for administrative expenses, as well as

insolvent insurer claims and expenses.

§ 23-96-115 Life and Health Guaranty Association Assessment

The Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall

assess the member insurers up to 2% net direct premiums written for preceding calendar year for

such amounts as the Board finds necessary to meet administrative and legal costs and costs

related to an impaired or insolvent insurer.

§ 26-57-602 Preemption

No political subdivision (city, town, school district, county or municipality) may levy a privilege

tax or license fee upon any such insurer or its agents for the privilege of transacting the business

of insurance.

Exclusions and Deductions:

§ 23-75-120 Hospital and Medical Service Corporations

Hospital and Medical Service Corporations are exempt from state, county, district, municipal and

school taxes explicitly as they are statutorily-formed non-profit and benevolent institutions; but

are subject to taxes on direct written premiums under §§ 23-75-119 and 26-57-601 et seq.,

applicable fees, and taxes on real and tangible property.

§ 23-74-504 Fraternal Benefit Societies

Fraternal Benefit Societies as statutorily-formed non-profit entities are not subject to state,

county, municipal or school tax other than to taxes on real estate.

7 U.S.CA. §§ 1501 to 1524 Federal Crop Insurance

Arkansas does not collect tax on federally reinsured crop insurance premiums under federal crop

insurance.

Retaliation—December 2023

Credits:

§§ 26-57-604; 23-76-131; 23-75-120 Life and/or Health Insurers and Health Maintenance Organization

Salary Offset

Each authorized life or accident and health insurer, including an HMO and hospital or medical

service corporations, may take a credit for noncommissioned salaries and wages of the insurer’s

Arkansas employees as an offset against the 2.5% tax on life and health insurance premiums. (See

§ 23-76-131(b)(1) for salary credit for employees of HMO.)

An employee must be a noncommissioned hire and have been employed a minimum of six

months during the tax year being reported for the wages to qualify for the life or accident and

health premium tax credit.

The offset may not reduce tax due on accident and health premiums by more than 80%; for tax

years beginning before January 1, 2021, by more than 70% for the tax year beginning January 1,

2021, by 60% for the tax year beginning January 1, 2022, and 50% for tax years beginning on and

after January 1, 2023.

Beginning January 1, 2020, an authorized accident or health insurer shall not receive a credit

under this subsection that exceeds an annual total of $18 million.

The offset may not reduce taxes due on life premiums by more than 70%.

Any unused premium tax credit may be carried forward for a maximum of 5 consecutive taxable

years for credit against the premium tax.

§§ 15-5-1303 and 15-5-1304 Affordable Neighborhood Housing Tax Credit

Insurers that perform verified affordable housing assistance activities may take a premium tax

credit for up to 30% of the total amount invested and not to exceed $750,000 in any taxable year.

Any amount of credit that exceeds the tax due for a taxable year may be carried forward to any of

the 5 subsequent taxable years. Program must meet standards of and be approved by Arkansas

Development Finance Authority.

§ 26-51-1702 Low-Income Housing Tax Credit

Insurers are allowed a state income or premium tax credit equal to 20% of the federal low-income

housing tax credit not to exceed $250,000 in any taxable year. The credit is available for insurers

that own an interest in a qualified project for which an eligibility statement has been issued by the

Arkansas Development Finance Authority.

§ 26-51-511 Coal Mining Enterprises

A coal mining enterprise receives a tax credit based on the tons of coal mined in Arkansas. This

tax credit may be transferred to Arkansas captive insurance companies and hospital or medical

services corporations. Coal mining enterprises or eligible transferees are eligible for a tax credit if

the coal was sold to an electric generation plant for less than $40 per ton excluding freight

charges. The credit allowed under this section shall expire after 5 years following the tax year in

which the tax credit was earned.

Retaliation—December 2023

Credits (cont.)

§ 26-57-615 Domiciled Insurers’ Credit for Fees Payable to Other Jurisdictions

Arkansas insurers may take a credit for the difference between the home state amount and the

Arkansas amount for any retaliatory fee assessed a domestic Arkansas insurer by another state

under nonresident licensure because of the Arkansas financial regulatory fee (CFRF), contained

in the State Insurance Department Trust Fund Act of 1993, either because the other state has a

lower fee or because the other state has no comparable fee. The credit is calculated on the amount

that would not have to be paid in the other state in the absence of (but for the imposition of) the

Arkansas financial regulatory fee, CFRF. The maximum tax credit is 90% of the annual premium

tax at the 2.5% rate.

§ 23-96-115 Life and Health Guaranty Association

Insurers may take a credit for assessments paid, other than for administrative costs, at a rate of

20% per year for five years beginning the year after the assessment was paid.

§ 23-90-119 Property and Casualty Guaranty Fund

Fund assessments of insurers may be taken as a credit against premium taxes at a rate of 20% per

year for five years following the date of assessment. Balance of any assessment paid and not

claimed as a tax credit may be reflected in the books and records of the insurer as an admitted

asset for all purposes, including annual statements. Any insurer which neglects to take 20% credit

during the year allowable will not be allowed to carry over the credit for the following year or

years.

§§ 15-4-3601 to 15-4-3614 New Markets Jobs Act

Arkansas taxpayers may earn a credit against the gross premiums tax for a qualified equity

investment as defined by § 15-4-3602. Taxpayers claiming the credit are not subject to the

retaliatory tax as a result of the credit. The credit cannot exceed the premium tax liability and may

be carried forward for nine years. The credit may be passed through to partners, members or

shareholders. (See Economic Development Commission Rule 22, effective April 22, 2013.)

→ §§ 26-51-2201 to 26-51-2208 Arkansas Historic Rehabilitation Income Tax Credit

The Department of Arkansas Heritage will begin accepting applications for the historic

rehabilitation income tax and premium tax credits beginning January 1, 2009, and ending on

December 31, 2037. The credit is equal to 25% of the total qualified rehabilitation expenses

incurred by the owner to complete a certified rehabilitation.

Beginning fiscal year 2024, the amount of the Arkansas historic rehabilitation income tax credit

for qualified rehabilitation expenses shall equal: 40% in a city with a population of less than

10,000; 35% in a city with at least 10,000; and 30% in a city with a population of more than

50,000.

(cont.)

Retaliation—December 2023

Credits (cont.)

§§ 26-51-2201 to 26-51-2208 Arkansas Historic Rehabilitation Income Tax Credit (cont.)

The Division of Arkansas Heritage shall only issue Arkansas historic rehabilitation income tax

credits for up to $4 million in any one fiscal year. Beginning fiscal year 2022, the division shall

only issue Arkansas historic rehabilitation income tax credits for up to $8 million in any one

fiscal year.

The credit is only allowed one time in a two-year period for each eligible property. The amount of

credit can equal but not exceed the amount of premium tax due for the taxable year. Unused

credits may be carried forward for up to five consecutive years and may be sold or transferred in

whole or in part at any time. (See Division of Arkansas Heritage, Rules Governing the Arkansas

Historic Rehabilitation Income Tax Credit Program.)

§§ 26-51-2601 to 26-51-2607 Arkansas Major Historic Rehabilitation Income Tax Credit

The Department of Arkansas Heritage will begin accepting applications for the major historic

rehabilitation income tax and premium tax credits beginning July 1, 2020, and ending on June 30,

2025. The credit is equal to 25% of the total qualified rehabilitation expenses incurred by the

owner to complete a certified rehabilitation. The credit is only allowed one time in a two-year

period for each eligible property. The amount of credit can equal but not exceed the amount of

premium tax due for the taxable year. Unused credits may be carried forward for up to five

consecutive years and may be sold or transferred in whole or in part at any time. (See Division of

Arkansas Heritage, Rules Governing the Arkansas Major Historic Rehabilitation Income Tax

Credit Act.)

Payment Due Dates:

§§ 26-57-603; 26-57-612; 26-57-614; Bulletin 13-87

Annual return and total premium tax payment from the previous calendar year are due on or

before Mar. 1 of the following year. Quarterly estimated payments (first three quarters only and

due 45 days after the quarter being reported) are based on a 2.5% tax rate on net premiums and

are required if the total estimated amount due is over $25. The fire protection tax shall be

separately specified. The taxes shall be reconciled annually at the time of filing the annual report.

Penalties:

→ §§ 26-57-607; 23-100-102; 23-61-704

$100 for each day of delinquency for failure to file tax report or to pay tax or regulatory fee when

due. Commissioner may suspend or revoke certificate of authority for failure to pay the tax or

regulatory fee by the due date.

Retaliation—December 2023

Penalties (cont.)

§ 23-64-507(c)

An individual insurance producer who allows his or her license to lapse may reinstate the same

license within 12 months after the due date of the renewal fee without the necessity of passing a

written examination. However, a penalty in the amount of double the unpaid renewal fee shall be

required for any renewal fee received after the due date.

Extensions:

§§ 26-57-607; 23-61-704

May be granted by the commissioner for good cause upon the insurer’s request.

Retaliatory Law:

§ 23-63-102

The same taxes, licenses, and other fees, in the aggregate, and the same fines, penalties, deposit

requirements or other material requirements, obligation, prohibitions, or restrictions that are

imposed upon an Arkansas insurer by another state, will be imposed as a retaliatory tax or fee

upon insurers of that state. Pursuant to Act 1965 of 2005, this section no longer applies to

application fees, examination fees, license fees, appointment fees, and continuation fees for

agents, adjusters, services representatives or consultants, or to personal income taxes, ad valorem

taxes on real or personal property, or to special purpose obligations, fees, or assessments imposed

by the other state in connection with particular kinds of insurance, other than property insurance.

Deductions from premium taxes or other taxes allowed because of real estate or personal property

taxes paid will be considered in determining the extent of retaliatory action under this section.

This section shall not apply to any foreign insurer if more than 15% of its capital stock is owned

by a corporation organized under the laws of this state and domiciled within this state.

§ 23-63-116

A domestic property and casualty insurer that pays any other state or foreign country a tax, fine,

penalty, deposit requirement or other material requirement, or any other fee that is determined by

the insurance commissioner to be a retaliatory tax is entitled to a reduction or credit upon its gross

premiums tax in the same amount paid to the other state or foreign country. This section does not

apply to any of the following imposed by another state:

(1) An application fee, examination fee, license fee, appointment fee, or a continuation

fee for an agent, adjuster, service representative, or consultant of a domestic property

and casualty insurer; or

(2) An ad valorem tax on real or personal property or special purpose obligations, fees,

or assessments.

Retaliation—December 2023

FEES

All fees and taxes listed on the premium tax return are aggregated. The following list is not

comprehensive. Contact the Arkansas Insurance Department for specific topics. The following list of fees

may not be up to date; therefore, the following fees shall mean those fees and amounts which are actively

in effect pursuant to a statute, rule or bulletin creating the fee. Please review the statute and rule based fee

type for the most updated amount.

Insurers’ Fees:

§§ 23-61-401; 23-61-706 to 23-61-708; 23-76-127; 23-62-104; 23-76-101; 23-63-501; 23-77-101;

23-94-201; 23-67-201; 23-92-201; 23-96-101; 23-96-102; 23-64-501; Arkansas Insurance Department

Rule 15; 23; 56 and 57

CATEGORY “A” FEES

(Maximum $1500) (Per covered entity, filing, or transaction)

Authorized or licensed insurers:

Department expense for independent actuarial review of previously disapproved

rate/rule filing set for hearing at filer’s request (excluding workers’ compensation

which is not subject to a monetary cap)

Expense as incurred but not to exceed .................................................................................... $1,500

Filing and review of each bulk or assumption reinsurance agreement ............................................... 500

Filing and review of all documents necessary for issuance of certificate of

incorporation for domestic insurers ............................................................................................. 500

[Note: Combined with $100 fee in § 23-61-401(1)(A), total fee due is $600.]

Reviewing all documents necessary for issuance of original certificate of

authority for all companies .......................................................................................................... 500

[Note: Combined with $500 fee in § 23-61-401(1)(C), total fee due is $1,000.]

Filing notice of appointment of managing general agent/agency or

notice of termination of managing general agent/agency ............................................................ 500

Review/processing of information necessary to amend an Arkansas

certificate of authority excluding FMAAs ................................................................................... 400

[Note: Combined with $100 fee in § 23-61-401(3)(C) for insurers and § 23-76-127(5) for HMOs,

total fee due is $500.]

Fili

ng and review of independent rate filings, initial filing to adopt an advisory organization’s

reference filing for loss costs, or filing to change the loss cost multiplier already on file,

including companion rule filings required to implement the rate filings (P, C, S, M) ................ 100

[Note: “P, C, S, M” signifies property, casualty (including workers’ compensation), surety and

marine insurance and all other specific lines identified at §§ 23-62-104 through 23-62-108.]

Filing to adopt an advisory organization’s reference for loss costs with no changes to

company’s loss cost multiplier already on file, including companion rule

filing required to implement the new loss cost filing ..................................................................... 50

Issuance of an original certificate of incorporation for domestic insurers ......................................... 150

[Note: Combined with $50 fee in § 23-61-401(1)(B), total fee due is $200.]

Issuance of original certificate of authority for all companies ........................................................... 150

[Note: Combined with $150 fee in § 23-61-401(1)(D), total fee due is $300.]

Review and processing of amended articles of incorporation (per filing, per insurer) ........................ 75

[Note: Combined with $25 fee in § 23-61-401(3)(A), total fee due is $100.]

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 23-61-401; 23-61-706 to 23-61-708; 23-76-127; 23-62-104; 23-76-101; 23-63-501; 23-77-101;

23-94-201; 23-67-201; 23-92-201; 23-96-101; 23-96-102; 23-64-501; Arkansas Insurance Department

Rule 15; 23; 56 and 57 (cont.)

CATEGORY “A” FEES (cont.)

Authorized or licensed insurers (cont.)

Review and processing of information necessary to amend an Arkansas

certificate of authority for an FMAA ......................................................................................... $150

Review any corrective action plan filed by a licensee up to ........................................................... 1,500

Review of custodial agreements for broker dealers & banks under Ins. Rule & Reg. 26 .................. 250

Review and processing application for viatical settlement provider license

and issuance of initial and renewal license .................................................................................. 500

Approved non-admitted surplus line insurer

Annual continuation of foreign surplus line company registration .............................................. 500

Accredited/trusteed reinsurer initial registration and annual renewal

for accredited or trusteed status ................................................................................................... 500

CATEGORY “B” FEES

(Maximum $50) (Per covered entity, filing, or transaction)

Compliance:

Filing or review of property and casualty policy/contract, endorsements or certificates,

riders, applications, or annuity forms, per submission (not per form) ........................................... 50

[Note: A service purchaser of an advisory organization must file the purchased form for review.]

Filing/review of each life and/or disability rate filing or loss ratio guarantee filing (per form) .......... 50

Filing of an independent rule filing or to adopt a reference or item filing of advisory

organization, excluding loss cost reference filing (per item) ......................................................... 50

Filing each set of new/amended or restated by-laws (per insurer, per filing) ...................................... 50

Filing/review of life and/or disability insurer’s advertisements

(per advertisement, per insurer) ....................................................................................................... 50

Policy, contract or annuity forms: filing and review of each life and/or disability

certificate rider, application, or endorsement, if filed separately from basic form

(per insurer) .................................................................................................................................... 50

Policy and contract forms (all lines): filing corrections in previously filed policy

and contract forms.......................................................................................................................... 50

Filing of each insurer address change, not involving an amendment to a certificate of authority or

articles of incorporation (per filing, per insurer) ............................................................................ 50

Filing of department Form I-71 as to cancellation/nonrenewal of all appointed

insurance agents and agencies after a name change or after merger

or consolidation of two or more insurers ....................................................................................... 10

Filing of each individual department Form I-71 as to cancellation/nonrenewal

of agent appointments (per appointment, per insurer) ................................................................... 10

Preparation and execution of certificates of compliance for insurers ................................................... 15

[Note: Combined with $5 fee in § 23-61-401(14)(B), total fee due is $20.]

Filing Form I-48 for all appointed insurance agents and agencies in the new name of an insurer

after a name change or after merger or consolidation of two or more insurers ............................. 10

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

Insurers’ appointments of insurance agents and agencies. In addition to and as an increase of all

other current agent license fees paid by insurers and others in connection with initial and renewal

agent appointments under the Insurance Code or other applicable laws or rules, the following

additional fees are hereby assessed insurers.

Ins. Rule & Reg. 57

Producer and agencies:

Initial appointment of nonresident insurance agent ............................................................................ $60

Initial appointment of nonresident agency, including one qualifying individual ................................. 60

Annual fee for insurer’s continuing appointment of nonresident insurance agent ............................... 60

Annual fee for insurer’s continuing appointment of nonresident agency,

including one qualifying individual ............................................................................................... 60

Initial appointment and annual continuation of resident agent, individuals only,

for full line appointments (life, disability and multi-line).............................................................. 10

Initial appointment and annual continuation of each resident agent,

individuals only, for limited line appointments ............................................................................. 10

Initial appointment and annual continuation of each resident agency, including one

qualifying individual, for full line appointments (life, disability and multi-line) .......................... 10

Initial appointment and annual continuation of each resident agency,

including one qualifying individual, for limited line appointments ............................................... 10

Pre-licensing Electronic Education Fee, per hour of instruction .................................................................. 1

(§ 26 of this Rule addresses the duration of this fee.)

§ 23-76-127; Ins. Rule & Reg. 57

Health maintenance organizations:

Filing pre-acquisition notification for mergers/charter sales and bulk reinsurance agreements

Category A fee ............................................................................................................................. 100

Filing and review of provider contracts (per HMO, per contract form)

Category B fee ............................................................................................................................... 50

Filing/review of enrollee’s certificate Category B fee ......................................................................... 50

§§ 23-63-501 to 23-63-532; Ins. Rule & Reg. 15; 57

Insurance holding company transactions:

(Fees below are per each holding company, not per each licensed insurer.)

All Category A Fees

Filing and review of each Form A on acquisitions/change in control

(domestics only) ........................................................................................................................ 1,000

Filing and review of each request for exemption from filing of registration

statements or amendments (Form B) (foreign & alien companies) ............................................. 100

Filing/review of holding company registration statement (Forms B and C)

(all companies) ............................................................................................................................. 100

Filing and review of amendments to holding company registration statements,

including annual re-filing (Form B) (all companies) ..................................................................... 50

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

Insurance holding company transactions (cont.)

Filing pre-acquisition notifications (Form E) or requests for exemptions therefrom per §§ 23-63-525

to 23-63-530 ............................................................................................................................... $100

Filing and review of registration statements—material transactions with affiliates

(Form D) (domestics) ................................................................................................................... 100

§§ 23-77-101 to 23-77-109; Ins. Rule & Reg. 57

Automobile clubs or associations:

Filing annual financial statement (April 1) Category A fee ............................................................... 100

Form filing Category B fee (per club, per form) .................................................................................. 50

Review of all documents necessary for and issuance of certificate of authorization

Category A fee ............................................................................................................................. 250

§§ 23-94-201 to 23-94-215; Ins. Rule & Reg. 57

Risk retention groups:

Initial registration fee Category A fee ................................................................................................ 250

[Note: Combined with $500 fee in § 23-61-401(1)(c) and the $250 fee in Rule 57, total fee due is

$750.]

Renewal registration fee (Mar. 1) Category A fee ............................................................................. 100

Filing annual statement Category B fee ............................................................................................... 50

Filing and review of any information that changes any information required in the application

for a certificate of registration ...................................................................................................... 100

Filing/review of name change or address change Category B Fee ....................................................... 25

Purchasing groups:

Initial registration fee Category A fee ................................................................................................ 150

Renewal registration fee (Mar. 1) Category A fee ............................................................................. 100

§§ 23-67-201 to 23-67-223; Ins. Rule & Reg. 23; 57

Rate service or advisory organizations:

All Category A Fees

Department expense for independent actuarial review of previously disapproved rate/rule

filing set for hearing at the request of the advisory organization (excluding workers’

compensation which is not subject to a monetary cap)

Expense as incurred but not to exceed ...................................................................................... 1,500

Filing and review of loss cost filings per advisory organization (P, C, S, M) .................................... 250

Filing and review of a policy/contract, endorsement or certificate (P, C, S, M)

(per item, maximum fee $500) ..................................................................................................... 100

Rule filings—filing minor rate component modifications ................................................................... 50

Review/issue renewal license (in addition to the renewal fee in § 23-61-401) .................................. 100

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

§§ 23-92-201 to 23-92-208; Ins. Rule & Reg. 57

Third party administrators:

All TPA applications for initial registration or renewal of registration, Category B fee ................... $40

[Note: Combined with $25 fee in § 23-92-203 and the $35 administrative and

regulatory fee in § 6, total fee due is $100.]

Service contract providers:

Filing changes to the registration required § 114-104(c)(1) Category B fee ........................................ 50

§§ 23-96-101; 23-96-201; Ins. Rule & Reg. 57

Continuing care facilities and life care providers:

Filing annual disclosure statement Category A fee

(per statement, per facility/provider and/or appointing commissioner as agent for service of

process) ........................................................................................................................................ 100

Filing and review of initial registration application Category A fee

(per facility/provider) ................................................................................................................... 250

Miscellaneous fees:

Category A fees

Department compilations to survey, questionnaire, report and data compilation requests

(excluding government agencies) ................................................................................................ 250

Filing and processing of security deposit releases/consolidations ....................................................... 75

Category B fees

Adding/deleting individual producers from agency licenses................................................................ 10

Filing substitute securities for security deposit releases, various licensees .......................................... 50

Service of process, two copies of each legal pleading or process, per insurer, other licensee,

or other entity doing business in Arkansas under statutes requiring commissioner’s

service duties (per transaction) ...................................................................................................... 25

Monies collected for checks issued to the department but returned to payor

for insufficient funds ...................................................................................................................... 20

Security deposit confirmations (per confirmation) ............................................................................... 10

Certificate for securities on deposit ...................................................................................................... 10

Certificate of documents......................................................................................................................... 5

[Note: Combined with $5 fee in § 23-61-401(14)(B), total fee due is $10.]

Certificates of valuation ....................................................................................................................... 10

Letters of clearance/certification (per license, per letter) ....................................................................... 5

Filing and review of name or address change for business entities ...................................................... 10

Copy fee for all documents including FOIA requests (per copy) ...................................................... 0.25

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

§§ 23-96-101; 23-96-201; Ins. Rule & Reg. 57 (cont.)

Miscellaneous fees (cont.)

Information Systems Services electronic, hard copy or magnetic, fees not to exceed amounts below:

Licensed company listings with agent appointments Paper Disk/CD/Email

1. Life & disability Cos. $240 $170

2. Property & casualty Cos. 240 170

3. Single company Category B fee 10 5

Licensed company listings without producer appointments: Paper/Disk/CD/Email

1. All Companies $50

Foreign 45

Domestics 5

2. Life & Disability 25

Foreign 20

Domestics 5

3. Property & Casualty 25

Foreign 25

Domestics 5

4. Fraternal Benefit Societies 5

5. Farmers Mutual Aid Assns. 5

6. Title insurers 5

7. MET’s & MEWA’s 5

8. Third Party Administrators 5

9. Purchasing Groups 5

10. Risk Retention Groups 5

11. Surplus Lines insurers 5

12. Health Maintenance Orgs. 5

13. Auto Clubs or Assns. 5

14. Surety insurers 5

15. Notary Bond Surety Cos. 5

16. Workers’ Comp. Ins. Cos. 5

17. Employee Leasing Cos. 5

18. Accredited/Trusted Reinsurers 5

19. Life Settlement providers 5

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

§§ 23-96-101; 23-96-201; Ins. Rule & Reg. 57 (cont.)

Miscellaneous fees (cont.)

Licensed agent listings with company appointments:

Paper Disk/CD/E-Mail

1. Life & disability producer $240 $170

2. Property & casualty producer 240 170

3. Single producer 10 5

Licensed agent listings without company appointments: Paper Disk/CD/E-Mail

1. All agents $50 $50

2. Life & Disability agents 30 20

3. Life agents 15 15

4. Disability agents 15 15

5. Multi-line agents 30 20

6. Brokers 10 10

7. Consultants 5 5

8. RRG agents 5 5

9. Purchasing Group brokers 5 5

10. Adjusters 5 5

11. Surplus Lines brokers 5 5

12. Managing General Agents 5 5

13. Reinsurance Intermediaries 5 5

14. Life Settlement brokers 5 5

Licensed agency listings with company appointments:

Paper Disk/CD/E-Mail

All Agencies $240 $170

Licensed agency listings without company appointments:

Paper Disk/CD/E-Mail

All Agencies $75 $50

If partial lists of licensees or licensees of a limited line or category are requested, the commissioner may

charge a reasonable fee less than the foregoing amounts.

Large reports will only be done on CDs.

Reports on labels will be $4 extra per 1,000.

Retaliation—December 2023

Insurers’ Fees (cont.)

CATEGORY “B” FEES (cont.)

§§ 23-96-101; 23-96-201; Ins. Rule & Reg. 57 (cont.)

Managing general agents/agencies:

Filing application for initial licensure and annual renewal Category A Fee .................................... $500

Reinsurance intermediaries:

Filing initial application for license as reinsurance intermediary-manager ........................................ 500

Filing initial application as reinsurance intermediary-broker ............................................................. 300

Annual renewal fee for reinsurance intermediary-manager ............................................................... 100

Annual renewal fee for reinsurance intermediary-broker ..................................................................... 75

Designation of commissioner as agent for service of process

for non-resident manager or broker ............................................................................................... 75

Notary bond surety corporations:

Initial and/or annual renewal of registration as notary bond surety corporation

Category B fee ............................................................................................................................... $50

Pre-licensing education:

Each original registration and/or annual renewal of a course provider for agent pre-licensing

education Category A fee ............................................................................................................. 100

Continuing education:

Each original registration and/or annual renewal of a course provider for agent continuing

education Category A fee ............................................................................................................. 100

DEPOSITS

§§ 23-63-205; 23-63-206

For domestic insurers, $100,000 minimum, with an additional $50,000 for surety insurers

transacting additional lines.

For foreign insurers, $100,000 minimum with an additional $50,000 for surety insurers. However,

if the deposit held in the home state of domicile is held for the benefit of policyholders and

creditors, then foreign companies are exempt from placing a deposit in Arkansas.

An insurer applying for its original certificate of authority in Arkansas shall possess and maintain

$750,000 for life; accident and health; casualty; surety; mortgage guaranty; life and accident and

health; property, casualty, surety, and marine; and any combination of other lines. An insurer

applying for its original certificate of authority for marine or property shall maintain $500,000.

$250,000 must be maintained for those seeking a certificate of authority for title. If a line is not

specified for under Arkansas law, the minimum will be $500,000.

(cont.)

Retaliation—December 2023

Deposits cont.)

§§ 23-63-205; 23-63-206 (cont.)

Mortgage guarantee insurers and title insurers shall not be approved to write any other kind of

insurance. Exempts insurer with one or both of these lines and other insurance lines of authority

authorized on its certificate of authority as of Jan. 1, 2006,

but the insurer shall not be allowed to

add additional kinds of insurance to its certificates of authority after Jan. 1, 2006.

CONTACT PERSON

Accounting Division, Insurance Department

Mary Davis: (501) 682-7678

Criminal Investigation Division, Insurance Fraud assessments

(501) 371-2790

Legal Division, Fees and Rules

(501) 371-2820

Liquidation Division, Guaranty Fund Assessments

(501) 371-2776

Arkansas Development Finance Authority

(501) 682-5900

Arkansas Secretary of State, Corporate Franchise Tax

(501) 682-3409

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

CALIFORNIA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Cal. Const. Art. XIII, § 28; Cal. Rev. & Tax Code §§ 12101; 12221; 12231

The amount of gross premiums, less return premiums. Gross premium does not include premiums

received for reinsurance and ocean marine insurance. In the case of title insurers, the basis of the

tax is all income upon business done in California, except interest and dividends, rents from real

property, profits from the sale of investments, income from investments.

Tax Rate:

→ Rev. & Tax. Code §§ 12202; 12221; 13210; Ins. Code § 1775.5

2.35% Life, health, property/casualty, title, annuities not funding federal qualified retirement plans,

risk retention groups. Rate subject to change.

0.5% Qualified annuity

0% Annuity policies or contracts that constitute qualified funding assets received on or after

January 1, 2023 (Ch. 474, Senate Bill 1496, 2023)

3% Surplus lines broker

[Note: Please see the Surplus Lines chart for further information.]

Other Taxes and Assessments:

Rev. & Tax. Code § 12101 Ocean Marine Insurance

5% of underwriting profit, which the gross premiums of the insurer from ocean marine insurance

written in California bear to the gross premiums of the insurer from ocean marine insurance written

within the United States, instead of a tax on premium.

Ins. Code § 12975.9 Seismic Safety Account

Insurers are assessed on property exposure for both commercial and residential insurance to fund

the seismic safety account. The assessment shall be set annually every Aug. 1, not to exceed fifteen

cents ($0.15) per earned property exposure.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

Ins. Code §§ 1872.8; 1872.83 Bureau of Fraudulent Claims

Insurers are also assessed an annual fee, not to exceed $1 annually for each vehicle insured by them

in the state to fund investigations and prosecution of claims fraud. This assessment is not included

in the California retaliatory tax calculation.

10 Cal. Code Regs. (CCR) § 2698.71 Organized Automobile Fraud Activity Interdiction Program

Each insurer shall pay an annual fee of $0.50 for each vehicle it insures under a policy of insurance

issued in this state, to be paid in increments of $0.125 for each quarter of a calendar year, but neither

the amount nor the payment of the assessment shall be prorated. This assessment is not included in

the California retaliatory tax calculation.

Lab. Code § 6354.7 Workers Occupational Safety and Health Education Fund

A fee is levied against each insurer for the purpose of establishing and maintaining a worker

occupational safety and health training and education program. The fee assessed against each

insurer shall not exceed the greater of $100 or 0.0286% of paid workers’ compensation claims for

the previous calendar year.

Ins. Code §§ 1063.5; 1063.14 Property and Casualty Guaranty Association

Association may assess no more than 2% of net direct premium written on each member to

discharge the obligation of an insolvent. Recover assessment by surcharge on premiums which

shall not be subject to premium tax.

→ Ins. Code § 1067.08 Life and Health Insurance Guaranty Association

Board of directors shall assess the member insurers, separately for each account, at the time and for

the amounts the board finds necessary. Class A assessments may be due for meeting administrative

and legal costs and other expenses. Class B assessments may be due to the extent necessary to carry

out the powers and duties of the association with regard to an impaired or insolvent insurer.

Assessments may not exceed 2% of insurer’s average premiums received during the three calendar

years prior to insolvency.

→ Rev. & Tax. Code § 12204

Premium tax is in lieu of all other taxes or fees which might be imposed by the state, county, or

municipality, with a few exceptions.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ 10 CCR § 2218.61; Health & Safety Code §§ 127660; 127662 Health Care Benefits Fund

Each health insurer shall be assessed a dollar amount determined by formula for each policy written

in California for insurance or group disability insurance that provides coverage for hospital,

medical, or surgical benefits, based on a total determined by the Department of Insurance and the

Department of Managed Care in consultation with the University of California and shall be limited

to the amount necessary to fund the actual and necessary expenses of the university and its work in

implementing the Health and Safety Code § 127660. The total amount of assessment on health

insurers and health care service plans when combined shall not exceed $2,000,000 annually. The

total assessment of health insurers shall not exceed 12.4% of the total annual assessment of health

insurers and health care services plans combined.

Ins. Code § 10127.17 Life and Annuity Consumer Protection Fund

Each admitted insurer shall pay a fee not to exceed $1 for each individual life insurance policy and

each individual annuity product issued to a California resident. If, as of June 30 of any calendar

year the fund exceeds $5 million the commissioner shall reduce the amount of the assessment the

following year to eliminate that excess.

10 CCR § 2698.95 Disability Insurance

Each admitted disability insurer shall pay an annual fee of $0.20 for each person that is covered by

an individual or group disability insurance policy during each calendar year. Such assessment shall

be paid by any other entity, doing business in California, which is liable for any loss due to health

insurance fraud. Insurers shall report the number of insured persons that are covered by an

individual or group disability policy to the commissioner by Dec. 31.

Exclusions and Deductions:

Ins. Code § 10993 Fraternals

Fraternals are exempt from the payment of premium taxes.

State of Kansas, ex rel. Todd v. United States of America, 995 F.2d 1505 (10th Cir. 1993).

California has agreed to follow the Todd decision and will not collect premium tax on federally

reinsured crop insurance premiums.

Retaliation—December 2023

Credits:

Rev. & Tax. Code § 12206 Low-Income Housing

Insurers may take a credit against the premium tax for a low-income housing project. The amount

of the credit allocated to any housing sponsor is based on the project’s need for the credit for

economic feasibility. The calculation of the amount of the credit is similar to the federal housing

credit. The aggregate housing credit amount that may be allocated annually shall be $70 million for

2001, and $70 million for each calendar year thereafter, increased at the same percentage as the

Consumer Price Index.

$500 million for 2020 and up to $500 million for 2021 and every year thereafter if the annual

Budget Act specifies an amount to be available for allocation in that calendar year by the Tax Credit

Allocation Committee. Tax Credit Allocation Committee shall accept applications for 2021

calendar year not sooner than 30 days after the California Debt Limit Allocation Committee have

adopted rules and guidelines.

Rev. & Tax. Code § 12207 College Access Tax Credit

Insurers may take a credit against the premium tax for the taxable years beginning on or after Jan.

1, 2017, and before Jan. 1, 2028, an amount equal to 50% of the amount contributed by the taxpayer

for the taxable year to the College Access Tax Credit Fund, as allocated and certified by the

California Educational Facilities Authority. The aggregate amount of credit that may be allocated

and certified pursuant to this section and Rev. & Tax. §§ 17053.87 and 23687 shall be an amount

equal to $500,000,000.

→ Rev. & Tax. Code § 12208 Pilot Project Uninsured Motorists Insurance Tax Credit

There shall be allowed a credit against the tax an amount equal to the amount of the gross premiums

due from the insurer on account of pilot project insurance for previously uninsured motorists. “Pilot

project insurance for previously uninsured motorists” means motor vehicle liability insurance

issued by an insurer to an insured who, at the time of the issuance, owned or operated a motor

vehicle without proof of financial responsibility.

Rev. & Tax. Code § 12209 Insurance Tax Credit Limitations

Notwithstanding Sections 12207 and 12208 to the contrary, for the years 2020 and 2021, the total

amount of all credits otherwise allowable under Sections 12207 and 12208, including any credit

amount allowed to be carried over pursuant to those sections, shall not reduce the annual tax by

more than $5,000,000 for a given year.

Section 12209(a) was amended to remove the tax credit limitation for the year 2022.

Payment Due Dates:

Rev. & Tax. Code §§ 12251; 12253; 12254; 12281

Tax return due April 1. If premium tax liability the prior year was $20,000 or more shall make

prepayments of 25% of prior year’s tax on April 1, June 1, Sept. 1, and Dec. 1 of current calendar

year. No prepayment required for ocean marine insurance profit or retaliatory tax.

Retaliation—December 2023

Payment Due Dates (cont.)

Rev. & Tax. Code § 12602(a) Electronic Funds Transfer

Every insurer whose annual taxes exceed $20,000 shall make payment by electronic funds transfer.

10 CCR § 2330.1 Electronic Funds Transfer

Insurers and surplus line brokers whose annual taxes exceed $20,000 are required to make payment

by electronic funds transfer.

Penalties:

Rev. & Tax. Code §§ 12258; 12631; 13220

If insurer fails to make prepayment within time required, pay penalty of 10% of amount due plus

interest. Failure to pay tax subject to penalty of 10% plus interest. The current interest rate for

underpayments is calculated pursuant to Rev. & Tax § 6591.5.

→ Rev. & Tax. Code § 12260

Commissioner may relieve an insurer of its obligation to make prepayments if the insurer

establishes to the satisfaction of the commissioner that either the insurer has ceased to transact

insurance in California, or its annual tax for the current year will be less than $20,000.

Rev. & Tax. Code § 12602(c)(1)

If required to and fails to remit taxes by electronic funds transfer, shall be assessed 10% of taxes

due at the time of the payment.

10 CCR § 2330.1

If insurer fails to remit taxes by electronic funds transfer (EFT) or is not timely, shall be assessed

10% penalty plus interest. If payment is made by some other method than EFT and the payment is

not timely, shall be assessed 20% plus interest.

→ 10 CCR §§ 2330.3; 2330.4

Penalty under § 233.01 may be waived under certain circumstances.

Ins. Code § 1775.5

If a surplus line broker fails to make payment within the time required, they must pay a penalty of

10% of the amount of the payment due plus interest at the rate of 1% per calendar month or fraction

thereof.

Retaliation—December 2023

Extensions:

→ Rev. & Tax. Code §§ 12255; 12306; 12307

Upon showing of good cause Commissioner may extend prepayment due date up to 10 days.

Interest shall be due for that period.

Upon showing of good cause, the Commissioner may grant a 30-day extension for filing tax return

or paying any amount required to be paid with the return. Interest due for that period. The

extensions may be granted at any time, provided that a request is filed with the commissioner

within, or prior to, the period for which the extension may be granted.

→ Ins. Code §§ 1775.4; 1775.5

Commissioner may extend date of monthly payment 10 days for good cause.

Extension of time for filing a tax return or paying any amount required to be paid by surplus line

broker with the return may be granted for 30 days. Interest due for that period. Payment must be

made within the extension period. The extensions may be granted at any time, provided that a

request is filed with the commissioner within, or prior to, the period for which the extension may

be granted.

Retaliatory Law:

Cal. Const. Art. XIII, § 28(f)(3); Ins. Code §§ 685; 685.1

If any taxes, licenses and fees, in the aggregate, and any fines, penalties, deposits and other material

obligations imposed on California insurers, and their representatives are in excess of the amounts

charged similar insurers and their representatives by California, a retaliatory tax shall be imposed.

Law does not apply to ad valorem taxes on real or personal property nor as to special purpose

obligations or assessments imposed by another state or country, unless allowed as a deduction from

premium taxes due.

Retaliation—December 2023

FEES

California aggregates all taxes and fees paid to compute retaliation.

10 CCR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3;

2014-6; 2018-4

Insurers’ Fees:

Certificate of authority:

Benefit and relief association .................................................................................................. $1,862

County mutual fire insurer ........................................................................................................ 7,761

Firemen’s, policemen’s or peace officers’ benefit and relief association ................................. 1,551

Fraternal benefit society ............................................................................................................ 7,761

Grants and annuities society ..................................................................................................... 4,656

Motor club ................................................................................................................................. 5,433

Mutual insurer ........................................................................................................................... 4,656

Reciprocal insurers.................................................................................................................... 4,656

Stock insurer ............................................................................................................................. 4,656

Life settlement provider original application ............................................................................ 4,656

Multiple employer welfare arrangement certificate of compliance application ....................... 5,752

Financial guaranty certificate of authority ................................................................................ 8,219

Professional reinsurance qualification ...................................................................................... 3,661

Amended certificate for financial guaranty association ............................................................ 8,219

Amended certificate of authority, each amendment .................................................................... 150

Licenses:

Home protection ....................................................................................................................... 4,656

Underwritten title company ......................................................................................................... 934

Workers’ compensation rating organization ................................................................................ 246

Amended licenses:

Underwritten title company license each additional county ........................................................ 543

Name approval/change:

All except grants and annuities societies and joint underwriters ................................................. 150

Grants and annuities society name change .................................................................................. 311

Joint underwriters name approval .................................................................................................. 79

Joint underwriters name renewal ................................................................................................... 28

Underwritten title company name change ................................................................................... 311

Home protection name change ..................................................................................................... 150

Withdrawal of certificate of authority holder:

County mutual fire insurer, fraternal benefit society, mutual, stock, reciprocal ....................... 1,551

Grants and annuities society ........................................................................................................ 934

Amendments to articles of incorporation:

All except grants and annuities societies and motor clubs ............................................................. 79

Grants and annuities society ........................................................................................................ 233

Motor club ...................................................................................................................................... 55

Retaliation—December 2023

Insurers’ Fees (cont.)

10 CCR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3;

2014-6; 2018-4 (cont.)

Amendments to bylaws:

Motor club .................................................................................................................................... $55

Renewal fee for certificates of authority/licenses:

County mutual fire insurer ........................................................................................................... 466

Fraternal benefit society ............................................................................................................... 466

Grants and annuities society ........................................................................................................ 150

Mutual insurer .............................................................................................................................. 466

Motor club .................................................................................................................................... 466

Stock insurer, including title ........................................................................................................ 466

Title (additional fee) ................................................................................................................. 1,087

Underwritten title company less than 50,000 documents filed .................................................... 311

Underwritten title company over 50,000 but less than 100,000 filed .......................................... 396

Underwritten title company over 100,000 documents filed ......................................................... 624

MEWA certificate of compliance renewal ................................................................................... 466

Workers’ compensation rating organization annual fee............................................................... 165

Life settlement provider annual license renewal ......................................................................... 292

Annual statement/audit report fees:

Filing annual statement (except fraternal benefit society) ........................................................... 462

Late filing fee (except fraternal benefit society) .......................................................................... 776

Additional penalty after first month (per month) ......................................................................... 934

Filing audit report (underwritten title companies) ....................................................................... 825

Penalty for failure to file audit report .......................................................................................... 311

Merger, reinsurance, assumption, consolidation, transformation:

All insurers except domestic/fraternal benefit society .............................................................. 6,985

Domestic/fraternal benefit society ............................................................................................... 425

Commissioner’s consent to reinsurance by fraternal fire insurer ................................................. 543

Application to transform county mutual fire insurer to general mutual insurer........................... 543

Application for holding company tender offers ........................................................................ 6,206

Prior approval—transaction of affiliate .................................................................................... 3,105

Filing fee for retiring insurer ..................................................................................................... 1,973

Mutual insurer merger approval ................................................................................................ 6,985

Approval certificate of transformation—county mutual fire insurer ........................................... 340

Holding companies:

Holding company sales transaction .......................................................................................... 3,105

Holding company loan transactions .......................................................................................... 3,105

Holding company reinsurance agreements ............................................................................... 3,105

Holding company management agreements ............................................................................. 3,105

Holding company guarantees ................................................................................................... 3,105

Holding company derivative transaction .................................................................................. 3,105

Holding company investments .................................................................................................. 3,105

Holding company material transactions .................................................................................... 3,105

Retaliation—December 2023

Insurers’ Fees (cont.)

10 CCR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3;

2014-6; 2018-4 (cont.)

Risk retention and purchasing groups:

Filing fee for registering as risk retention groups ................................................................... $1,316

Filing fee for registering as a purchasing group .......................................................................... 594

Variable annuities:

Determination of qualification

foreign insurer .................................................................................................................... 3,105

domestic insurer .................................................................................................................... 934

plus, administrative cost in excess of 934

Change to an application and qualifications ............................................................................. 3,105

Variable life review—document review ...................................................................................... 799

Variable life and annuities—transfer of assets ......................................................................... 3,980

Non-assessable policies:

Certificate for domestic mutual ................................................................................................... 311

County mutual fire company certificate or amendment ............................................................... 195

Perpetual certificate (reciprocal) .................................................................................................. 624

Stock permits:

Original, supplemental, or amended application for permit to issue securities ........................ 4,656

Application for permit to issue securities for change in rights, preferences,

privileges or restrictions ........................................................................................................ 624

Application for permit to issue securities, evidencing share dividend or

share split ............................................................................................................................ 1,551

Application for any other kind of permit ..................................................................................... 311

General filing:

Appointment of agent for service of process ................................................................................. 79

Amendments to motor club membership certificate ...................................................................... 55

MEWA financial information filing ............................................................................................ 462

Proxy filing .................................................................................................................................. 150

Service of process upon commissioner .......................................................................................... 32

Mortgage guarantee insurer (pool insurance filing) .................................................................. 1,242

Permission to transact other classes (mortgage guaranty insurance) ........................................ 2,465

Trustee assets certificate ................................................................................................................ 32

Application for order pursuant to Ins. § 1401.5(a) ...................................................................... 624

Application for exemption under Ins. § 1101(b)(3)(i) ................................................................. 776

Legal and other certificate .................................................................................................... 21 to 55

Permit for multiple insurer operation. .......................................................................................... 118

For each certified copy of approval of merger of county mutual .................................................. 15

Approval of amendment of California assigned risk plan ........................................................ 1,551

Initial filing and semi-annual review—letter of credit ................................................................. 466

Annual fee for letter of credit ....................................................................................................... 311

Filing of a deposit agreement ....................................................................................................... 311

Filing of an amended deposit agreement ..................................................................................... 311

Retaliation—December 2023

Insurers’ Fees (cont.)

10 CCR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-

6; 2018-4 (cont.)

General filing: (cont.)

Fee for issuing certificate where fee is not specified in code ...................................................... $55

Fees for application for licenses and qualifying exam where no fee is specified .......................... 24

Certified copy of certificate of authority........................................................................................ 24

Certificate of valuation ................................................................................................... 52 plus cost

Certificate of compliance ............................................................................................................... 24

Certificate pursuant to retaliation ................................................................................................... 24

Qualified custodian approval fee .............................................................................................. 2,465

Qualified custodial agreement approval fee ................................................................................. 823

Approval of investment trust or partnership ............................................................................. 8,219

Approval of real estate investment by domestic insurer actual expense,

not to exceed .......................................................................................................................... 823

Application for approval to deliver consideration other than securities ...................................... 411

Domestic mutual insurer contract approval ................................................................................. 165

Investment return assurance approval plus administration costs in excess of ............................ 411

List of eligible surplus lines insurers:

Initial application ...................................................................................................................... 6,724

Renewal application .................................................................................................................. 3,363

Financial update ........................................................................................................................... 375

Non-financial update ...................................................................................................................... 55

Securities deposit and withdrawal:

Initial securities deposit ............................................................................................................... 150

Securities withdrawal, substitution or any change ......................................................................... 79

Certificate of deposit ...................................................................................................................... 79

Fee for filing a certificate ............................................................................................................... 48

Failure to file workers’ compensation bond or deposit penalty ......................................... see below

Additional penalty after first month, per month ................................................................ see below

Fees are as follows: (a) if the deposit shortfall is outstanding for less than 31 days, 0.5% of the deposit

shortfall, but in no event not less than $600. (b) If the deposit shortfall is outstanding for more than 30 days

but less than 61 days, an additional late filing fee in the amount of 1% of the deposit shortfall, but in no

event not less than $1,200 shall be due. (c) An additional late filing fee of 1.5% of the deposit shortfall for

every 30-day period thereafter, or fraction thereof, that the amount is outstanding, but in no event shall the

total late fee be less than $3,000. Ins. Code § 11692.5

Miscellaneous:

Postage or delivery charges ...................................................................................................... actual

Attaching commissioners seal of office ........................................................................................... 1

Dishonor of check .......................................................................................................................... 15

Fee liens, not to exceed ............................................................................................................ 1,233

Materials where there is no specific fee .............................................. not to exceed reasonable cost

Retaliation—December 2023

Insurers’ Fees (cont.)

10 CCR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3;

2014-6; 2018-4 (cont.)

Computer listing of agents licensed in California:

Partial Listing .............................................................................................. $923 plus 0.01 per name

Computer listing of names/addresses of admitted companies ....................................................... 81

Retaliation—December 2023

nsurers’ Fees (cont.)

10 C

CR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4 (cont.)

Type of

Coverage

Policy

Certificate

Rider/

Insert

Page

Application

Enrollment

Form

New Issue

Rates

Rate

Changes*

See

Note

Other

Documents

Health

$4,900

$2,450

$1,110

$1,520

$260

$1,110

$1,450

(1)

$1,100

Group & Blanket

Life and Group

& Blanket Non-

health Disability

3,590

1,860

660

1,420

330

660

Individual

Disability

Income

5,620

1,260

300

1,260

1,660

1,260

Medicare Supp.

3,180

1,650

590

1,260

300

1,260

(2)

590

Long-Term Care

4,960

2,480

1,110

1,540

260

1,110

2,600

(3)

1,110

Credit Life &

Credit Disability

1,860

880

1,420

330

See Note (4)

880

Supplemental

Life

Language in policy or rider: 1,870

1,960

660

Waivers of

Premium &

Surrender Charge

Benefits

Language in policy or rider: 2,070

1,960

660

Accel. Death

Benefits

Language in policy or rider: 3,160

1,960

1,110

660

Life Insurance

Language in policy or rider: 4,960

1,960

1,110

2,600

660

* Per experience group.

Retaliation—December 2023

Insurers’ Fees (cont.)

10 C

CR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4 (cont.)

Type of

Coverage

Policy

Certificate

Rider/

Insert

Page

Application

Enrollment

Form

New Issue

Rates

Rate

Increases*

See

Note

Other Forms

Variable Life &

Annuities

$3,060

$1,590

$560

$1,210

$280

$560

Fraternals

4,570

1,090

330

(5)

1,090

Workers’ Comp.

990

230

See Code Sec. 2509.30 et seq.

230

Other

660

Universal

Products

Individual Life Policies, Annuity Contracts, and Group Annuity

Certificates: 1,590

Riders and Insert Pages: 230

230

Grants &

Annuity

Societies

(See Ins. § 11522 when more than 10 documents are filed within a calendar quarter.)

Reciprocal or

Inter-Insurance

Exchanges

760

Fraternal Bylaws,

etc.

380

Motor Club

1830

* Per experience group.

Retaliation—December 2023

nsurers’ Fees (cont.)

10 C

CR § 2202; Ins. Code §§ 12973; 12973.5; Bulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4 (cont.)

NOT

(1) Small employer health insurance rating plans: $1,100 per submission. Lists of small employer health insurance benefit plan designs; lists of associations to

hich or through which small employer health insurance benefit plans are marketed and information pertaining thereto: $510 per list or amendment thereto.

(2) A

nnual filings of experience under previously approved Medicare supplement insurance rate schedules demonstrating compliance with loss ratio standards for

in-force policies: $780 per experience group. 10 CCR § 2203(h) does not apply. Documents advertising Medicare supplement insurance. $590 per advertisement

(3) Documents demonstrating compliance with Ins. Code §§ 10231.6(c) and 10232(b). $860 per association. Documents advertising long-term care insurance. $520

per advertisement.

(

oluntary downward deviated rates: $350 per experience group. Actuarially equivalent rates: $1,090 per experience group. Upward deviated rates and

mandatory downward deviated rates: $2,190 per experience group. Renewals of previously approved upward deviated rates and mandatory downward deviated

rates: $1,090 per experience group.

(5) I

n products issued by fraternals, long-term care benefits funded by reducing life insurance benefits or by waiving annuity withdrawal charges: $2,190 pe

doc

ument. Applications with additional underwriting criteria for such long-term benefits; $1,960 per application.

Retaliation—December 2023

→ Producer Licensing Fees:

ulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4; Ins. Code §§ 1626; 1750; 1718; 1811

Fees in italics in effect 7/1/2023.

oduction agent (individual and business entity) licenses:

Property and casualty broker agent license and renewal, per year .............................................. $94

Personal lines broker-agent, per year ............................................................................................. 94

Life agent license, resident renewal, per year ................................................................................ 94

Life agent license, nonresident renewal, per year .......................................................................... 94

Accident and health agent license, resident renewal, per year ....................................................... 94

Accident and health agent license, nonresident renewal, per year ................................................. 94

Life and disability insurance analyst issuance or renewal, per year ............................................ 311

Part-time fraternal agent ................................................................................................................ 94

Administrator, per year .................................................................................................................. 94

Cargo shipper’s agent, per year ..................................................................................................... 32

Motor club agent ............................................................................................................................ 94

Rental car agent ........................................................................................................................... 509

Portable electronics insurance agent ............................................................................................ 321

Credit insurance agent.................................................................................................................. 449

Reinsurance intermediary broker (perpetual license) .................................................................. 411

First amendment to application ...................................................................................................... 15

Subsequent amendments ................................................................................................................ 32

Notice of appointment or endorsement (affiliation) ...................................................................... 32

Notice of termination of appointment or endorsement (affiliation) ............................................... 32

Amended notice of appointment/endorsement (affiliation) or termination ................................... 12

Ratification of agency appointments by surviving insurer .......................................................... 204

License renewal delinquent fee ................................................... one-year fee for respective license

Brokers/agents certificate:

Brokers (headquarters) ................................................................................................................. 311

Brokers (additional locations) ...................................................................................................... 150

Agents, Stock Agent .................................................................................................................... 150

Certificate of license status printed form ....................................................................................... 24

Life settlement broker application and renewal ........................................................................... 188

Title marketing representative application ................................................................................... 261

Title marketing representative renewal ........................................................................................ 276

Sur

plus lines:

Surplus line broker licensee who only transacts on behalf of a surplus line broker

business entity, license and renewal, per year ....................................................................... 323

Surplus line broker licensee who does not solely transact on behalf of a surplus

broke

r business entity, license, and renewal, per year........................................................... 648

Filing fee for endorsing or terminating any natural person by the organization,

one-time fee ............................................................................................................................. 32

Retaliation—December 2023

roducer Licensing Fees (cont.)

ulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4; Ins. Code §§ 1626; 1750; 1718; 1811

(cont.)

Fees in italics in effect 7/1/2023.

surance adjuster licenses:

Original license application ......................................................................................................... $79

Original branch office certificate ................................................................................................... 52

Original license and renewal of license ....................................................................................... 311

Branch office certificate renewal ................................................................................................... 62

Delinquency, 50% of renewal, not to exceed ................................................................................. 79

Re-examination of applicant or his manager ................................................................................. 32

Additional fictitious business name or change .............................................................................. 28

License reissued in a fictitious business name ............................................................................... 32

Crop insurance adjuster................................................................................................................ 311

Replace ID card ............................................................................................................................. 28

ublic adjuster licenses:

Original license application ........................................................................................................... 68

Original branch office certification ................................................................................................ 39

Original license and renewal of license ....................................................................................... 264

Branch office certificate renewal ................................................................................................... 55

Delinquency, 50% of renewal not to exceed ................................................................................ 132

Re-examination of applicant .......................................................................................................... 28

Additional fictitious business name or change .............................................................................. 28

Interim license .............................................................................................................................. 264

Replace ID card ............................................................................................................................. 28

Other licenses and services:

Filing producers license bond ........................................................................................................ 32

Clearance letters ............................................................................................................................. 32

Certificate of convenience ............................................................................................................. 39

ail fees:

Bail agent original filing, per year ............................................................................................... 311

Bail solicitor original filing, per year ........................................................................................... 311

Bail permittee original filing, per year ......................................................................................... 624

Bail fugitive recovery agent original filing, per year .................................................................. 311

Bail agent renewal filing, per year ................................................................................................. 94

Bail solicitor renewal filing,

per year ............................................................................................ 94

Bail permittee renewal, per year .................................................................................................. 394

Bail fugitive recovery agent renewal, per year .............................................................................. 94

Late renewal penalty fee ........................................................................................... twice fee above

Approval of fictitious or other name .............................................................................................. 32

Replace bail bond fee ..................................................................................................................... 28

First amendment to application ...................................................................................................... 15

Subsequent amendments ................................................................................................................ 32

ID Card, First Replacement ........................................................................................................... 15

ID Card, Second and subsequent replacements ............................................................................. 32

Retaliation—December 2023

Producer Licensing Fees (cont.)

ulletins 2003-4; 2009-3; 2010-2; 2013-2; 2013-3; 2014-6; 2018-4; Ins. Code §§ 1626; 1750; 1718; 1811

(cont.)

Fees in italics in effect 7/1/2023.

icense examination:

Property and casualty, life agent, first examination and reexamination ..................................... $55

Bail bondsman, first examination and first reexamination ............................................................ 62

Life and disability insurance analyst ............................................................................................ 155

Miscellaneous applications for exams ........................................................................................... 79

gents’ fees may be paid by company or agent. Retaliation on nonresident agents’ fees.

DEPOSITS

Ins.

Code § 10454 Life Insurers Registered Policies

Life insurers may register policies with the commissioner. The insurer shall maintain special

deposit for the benefit of these policies.

Ins.

Code §§ 11691 to 11691.2 Workers’ Compensation Insurers

ubject to requirement to deposit securities in an amount set by the commissioner, but not less than

$100,000. Deposits amount specified, based on future payments estimate but not less than

$100,000.

Ins.

Code § 12350 Title Insurers

eposit of $100,000 required.

→ CO

NTACT PERSON

imi Yan: (213) 346-6469; mi[email protected]a.gov

→ Kathryn Taras: (916) 492-3675; [email protected].gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

COLORADO

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

→ Colo. Rev. Stat. § 10-3-209

Gross premiums minus amount received as reinsurance premiums on business in the state,

amount refunded under credit life, credit accident and health due to cancellation prior to maturity

date of loan and return premiums for other than life. For Annuities written on or after January 1,

2021, certain annuities subject to tax pursuant to Section 10-3-209(1)(d)(IV).

Tax Rate:

§ 10-3-209

2% for all insurers.

1% for companies maintaining a home or regional office in the state. Effective 7/1/2021,

company’s total domestic workforce must be greater or equal to 2% for calendar year 2022;

2.25% for 2023; and 2.5% for 2024 and each calendar year thereafter. 3 Colo. Code Regs. (CCR)

702:2-1-2 sets forth criteria and procedures for home office qualification.

3 CCR 702:2-1-8 § 11

Risk retention group taxed same as insurer.

Other Taxes and Assessments:

§ 8-46-102 Subsequent Injury Fund and Major Medical Insurance Fund

Subsequent Injury and major medical insurance funds shall assess premium taxes at a rate to be

determined by the director. See 7 CCR 1101-3:2 Premium Surcharges below.

§ 8-44-112 Workers’ Compensation Administrative Cost Surcharge

A premium surcharge for purpose of offsetting administrative costs of workers’ compensation

system is assessed on premium received at a rate established by rule and adjusted annually. Paid

to division of workers’ compensation. See 7 CCR 1101-3:2 Premium Surcharges below.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ 7 CCR 1101-3:2 Workers’ Compensation Premium Surcharges

Every insurance carrier shall semi-annually file a surcharge return with the division. For the

annual period beginning July 1, 2022, through June 30, 2023, the workers’ compensation cash

fund premium surcharge rate shall be 1.40% of the amount of all premiums written, including any

policy expense constants, membership fees, finance and service, or other administrative fees

charged to the policyholder in connection with the issuance or renewal of a policy.

For the purpose of funding the direct and indirect costs of the premium cost containment program

of the division, there is added to the surcharge an additional increment for the annual period

beginning July 1, 2022, through June 30, 2023. The amount of this assessment shall be 0.03%.

No assessment shall be imposed upon self-insured employers under this subsection.

For the purposes of funding the financial liabilities of the subsequent injury fund and the major

medical fund, for the period beginning July 1, 2022, through June 30, 2023, the tax shall be

assessed at 0.00% of the amount of workers’ compensation premiums written.

For the annual period beginning July 1, 2023, the workers’ compensation cash fund premium

surcharge rate shall be 1.40% of the amount of all premiums written, including any policy

expense constants, membership fees, finance and service, or other administrative fees charged to

the policyholder in connection with the issuance or renewal of a policy.

For the purpose of funding the direct and indirect costs of the premium cost containment program

of the division, there is added to the surcharge an additional increment for the annual period

beginning July 1, 2023. The amount of this assessment shall be 0.03%. No assessment shall be

imposed upon self-insured employers under this subsection.

For the purposes of funding the financial liabilities of the subsequent injury fund and the major

medical fund, for the period beginning July 1, 2023, the tax shall be assessed at 0.00% of the

amount of workers’ compensation premiums written.

→ § 24-31-104.5 Insurance Fraud Fee

For the purpose of investigation and prosecution of insurance fraud, every entity regulated by the

division of insurance shall pay a nonrefundable annual fee not to exceed $3,000. For fiscal 2023-

2024, a $555 fee for those companies whose prior direct written premiums, gross contract funds,

or charges received in Colorado were $1,000,000 or less. For those companies whose prior year

direct written premiums, gross contract funds, or charges received in Colorado were greater than

$1,000,000, the fraud fee is $2,940. Due by Mar. 1.

§ 10-4-508 Property and Casualty Guaranty Association

Association may assess member insurers up to 2% net direct written premium on kinds of

insurance in account.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 10-20-109 Life and Health Guaranty Association

Association may assess member insurers up to 2% average premiums received in the state during

past three calendar years preceding the year in which the insurer became impaired or insolvent.

§ 10-3-209 Preemption

No county, city or town may levy any occupation or other tax except taxes on real or personal

property and on workers’ compensation premiums.

Exclusions and Deductions:

§ 10-3-209 Fraternals

Fraternals are exempt from the payment of premium taxes.

→ § 10-3-209 Domestics’ Policies Issued Prior to 1959 (Repealed eff. Jan. 1, 2024)

Excludes tax on policies issued prior to 1959 by a domestic insurance company meeting

requirements regarding principal plan of business and investment of assets.

Credits:

§ 39-30-103.5; 1 CCR 201-13; 3 CCR 702-3:3-1-5 Contributions to Enterprise Zone Administrators

An insurer that makes a monetary or in-kind contribution to the enterprise zone administrator for

the purpose of implementing the economic development plan for the enterprise zone is entitled to

a credit against premium taxes in an amount equal to 25% of the total value of the contribution,

not to exceed $100,000 per year or the total amount of premium tax, whichever is less.

§ 39-30-105.6 Rehabilitation of Vacant Buildings

An insurer that owns or is a tenant of a building that is at least 20 years old and is located in an

enterprise zone, and that has been unoccupied for at least two years, will be allowed credit of

25% of the qualifying cost of rehabilitating the building subject to a $50,000 per building credit

limitation and subject to any I.R.C. § 38 rehabilitation credit claimed. Any credit not used may be

carried forward.

§ 39-30-104 Investment in Certain Property

Insurers may take a credit against the premium tax equal to 3% the amount of the total qualified

investment for qualified property used solely and exclusively in an enterprise zone for at least one

year. Insurers may take a credit equal to 12% of the total investment made during the taxable year

in a qualified job training program. These credits may be carried forward.

Retaliation—December 2023

Credits (cont.)

§ 39-22-2102 Low-Income Housing Developments

A premium tax credit is available for owners of qualified low-income housing developments that

receive a credit allocation from Colorado Housing and Finance Authority (CHFA). The credit

will not exceed 30% of the qualified basis of the development and will be allocated only to the

extent necessary for the financial feasibility of the development. A copy of the Colorado State

Low-Income Housing Tax Credit Allocation Certificate that is issued by CHFA must be attached

to the Colorado premium tax return that claims the credit.

§§ 10-3.5-105 to 10-3.5-106; 8 CCR 1501-2 Certified Capital Company

An insurer may contribute capital to provide assistance in the formation of businesses that creates

new jobs in Colorado. One hundred percent of the capital contributed prior to Jan. 1, 2004 may be

taken as a credit against premium tax on the following schedule: 10% per year until the credit is

fully utilized. Credits not used may be carried forward up to 10 years. Aggregate total of premium

tax credits is investments that would generate credits of $10 million per year for 10 years

beginning in tax year 2003. The credit to be applied in any one year shall not exceed the state

premium tax liability of the certified investor for that taxable year.

§ 39-30-105.5 Expenditures for Research and Experimental Activities

An insurer that makes expenditures in qualified research and experimental activities and the

activities are conducted in the enterprise zone, shall be allowed a credit against premium taxes.

The credit is based on the increase of a company’s research and experimental expenditures over

the average of expenditures conducted in the same enterprise zone during the previous two

premium tax years. The insurer may claim 25% of the tax credit in the year the expenditures are

made and 25% in each of the following years. This credit may be carried forward.

§ 10-20-113 Life and Health Guaranty Association

May offset assessment on account of life or annuity insolvency against premium tax at rate of

20% of the amount of such assessment for each of the first, second, third, fourth, and fifth

calendar years following the year in which such assessment was made. To the extent the offsets

exceed insurer’s premium tax liability; they may be carried forward to future years.

§ 10-22-110 Premium Tax Credits for Contribution to the Colorado Health Benefit Exchange

A credit against the tax imposed by sections 10-3-209 and 10-6-128 is allowed to any insurance

company that becomes a qualified taxpayer by making a contribution to the exchange pursuant to

this section. The insurance company may only contribute an amount of money equal to the

premium taxes paid by the company pursuant to the July 31 tax payment, or a lesser amount as

determined by the commissioner. A qualified taxpayer claiming a credit against premium tax

liability is not required to pay any additional retaliatory tax as a result of claiming the credit. An

insurance company that becomes a qualified taxpayer may claim the tax credit on one or more

subsequent quarterly or annual tax payments beginning on or about Oct. 31. Insurers are

permitted to carry over any excess credit to other tax returns.

Retaliation—December 2023

Payment Due Dates:

§ 10-3-209

Due Mar. 1. If last year’s tax exceeded $5,000, pay quarterly estimates due on last day of month

following end of quarter. Each payment should equal 25% of the total tax paid during the

preceding year, or 80% of the actual quarterly tax for the current calendar year, whichever is

greater.

Penalties:

§ 10-3-209

If more than 30 days late with return on quarterly estimates, penalty of up to $100 day for each

additional day of delinquency. If less than full amount of tax is paid, add interest of 1% per

month, plus commissioner may assess penalty of up to 25% of unpaid amount.

Extensions:

§ 10-3-209

Penalties do not begin to accrue until 30 days after due date. There are, however, no provisions

allowing an extension.

Retaliatory Law:

§ 10-3-209

If any taxes and fees in the aggregate, fines, penalties, deposits or other obligations imposed on

Colorado insurers exceed those Colorado imposes on a similar insurer organized under the laws

of another state, a retaliatory tax will result.

Retaliation—December 2023

FEES

All fees and taxes are aggregated on premium tax return. If no fee is listed for a particular license or

service, a fee will be charged in retaliation.

Insurers’ Fees:

§ 10-3-207

Initial application:

Investigating and processing ...................................................................................................... $500

Insurers pay most fees by one payment due Mar. 1. Specified fees for any entity regulated by insurance

department:

Direct Written Premium

Taxable Premiums

Annual Fee

Up to $1,000,000

and

Up to $1,000,000

$670

$1,000,001 to $10,000,000

and

$80,000 to $10,000,000

2,010

$10,000,001 and more

and

$120,000 and more

3,345

In addition, the department may charge a reasonable fee for copying and other administrative services.

Retaliation—December 2023

Producer Licensing Fees:

3 CCR 702-1:1-2-10, § 12

Standard fees for producers are set forth below:

Submitted By

Transaction Type

Forms are available and should

be submitted through:

Total Fee

Individual or

Agency Producer

New License/Add an Authority

(Resident)

sircon.com or nipr.com

$47 per

authority

Individual or

Agency Producer

New License/Add an Authority

(Nonresident)

sircon.com or nipr.com

$71 per

authority

Individual or

Agency Producer

New License/Add an

Authority

—Surplus Lines

(Resident)

sircon.com or nipr.com $144

Individual or

Agency Producer

New License/Add an

Authority

—Surplus Lines

(Nonresident)

sircon.com or nipr.com $294

Individual or

Agency Producer

License Renewal

(Resident) sircon.com or nipr.com

$27 per

authority

Individual or

Agency Producer

License Renewal

(Nonresident) sircon.com or nipr.com

$43 per

authority

Individual or

Agency Producer

License Renewal—Surplus Lines

(Resident)

sircon.com or nipr.com $134

Individual or

Agency Producer

License Renewal—Surplus Lines

(Nonresident)

sircon.com or nipr.com $284

Individual or

Agency Producer

Cancelling an Authority

(Resident)

pearsonvue.com No Fee

Individual or

Agency Producer

Cancelling an Authority

(Nonresident)

pearsonvue.com No Fee

Individual or

Agency Producer

Name Change

Written Request to Pearson VUE No Fee

Individual or

Agency Producer

Address Change

sircon.com and nipr.com No Fee

Individual or

Agency Producer

Letter of Certification

sircon.com No Fee

Individual or

Agency Producer

Letter of Clearance

Written Request to Pearson VUE No Fee

Individual or

Agency Producer

Assumed Name Registration

www.dora.colorado.gov/doi/

producer

No Fee

Agency Producer

only

Producer

Registration/Cancellation of

Unlicensed Officer

pearsonvue.com No Fee

Retaliation—December 2023

Producer Licensing Fees (cont.)

3 CCR 702-1:1-2-10, § 12 (cont.)

Standard fees for producers are set forth below (cont.)

Submitted By Transaction Type

Forms are available and

should be submitted through:

Total Fee

Bail Industry

Companies Only

Bail Industry Appointments &

Appointment Renewals

www.dora/colorado.gov/doi/regu

lations (See regulation 1-2-16)

$95

Bail Industry

Companies Only

Bail Industry Terminations

www.dora/colorado.gov/doi/regu

lations (See regulation 1-2-16)

No Fee

Individual or

Agency Producer

New License Reinsurance

Intermediary

Written Request to DOI $200

Individual or

Agency Producer

License Renewal—Reinsurance

Intermediary

sircon.com and nipr.com

(Nonresidents only)

$200

Education Provider

Continuing Education Course

Registration

sircon.com $20

Education Provider

Course Renewal

sircon.com

$20

Individual

Producer**

Only Licensing Examination at

Test Center

N/A $41

Individual Producer

Only Licensing Examination via

OnVUE

N/A $31

Individual

Producer**

Only Licensing Examination

Retake at Test Center

N/A $41

Individual Producer

Only Licensing Examination

Retake via OnVUE

N/A $31

** Candidates who schedule certain examinations back-to-back may do so for a single fee. For example,

candidates who schedule the Property exam and the Casualty exam back-to-back will only pay a single

exam fee of $41.

All fees paid pursuant to this regulation are non-refundable. Fees are payable by electronic cash or credit

card. If fees are paid electronically, and the check is refused by the bank for any reason or the credit card

is declined for any reason, the producer's license will not be valid.

DEPOSITS

§§ 10-3-201; 10-3-302

Domestic insurers shall maintain a deposit equal to the minimum capital and surplus. Foreign

insurers may instead have a like amount deposited with another state having similar requirements,

where the deposits are held for the benefit of all policyholders wherever located and not with a

preference for those in the depository jurisdiction.

[Note: Please see the Company Deposit chart for further information.]

Retaliation—December 2023

CONTACT PERSON

Cindy Hathaway: (303) 894-7836; cindy.h[email protected]s

Lorraine Pritchett: (303) 894-2195; lorraine.pritchett@state.co.us

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

CONNECTICUT

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Conn. Gen. Stat. § 12-202 Domestic Insurers

§ 12-210 Foreign Insurers

Computed on all net direct premiums received during the calendar year.

§ 12-202a Health Care Centers

Computed on total net direct subscriber charges received during the calendar year.

§ 38a-91nn Captive Insurance Companies

Computed on total direct premiums collected or contracted for during the calendar year,

excluding considerations received for annuity contracts.

§ 38a-277 Nonadmitted Insureds

Computed on gross premiums charged for “independently procured insurance” as such term is

defined in § 527 of the Nonadmitted Reinsurance Reform Act of 2010. This tax only applies to

insureds whose home state is Connecticut and is irrespective of whether the insurance policies, on

which such premiums are charged, may cover properties, risks, or exposures located or to be

performed both within and without Connecticut.

§§ 38a-254; 38a-277 Risk Retention Groups

Computed on gross premiums paid for coverages within this state to risk retention groups. This

does not apply to captive insurance companies or licensed or eligible surplus lines insurers.

§ 38a-743 Surplus Lines Brokers

Computed on gross premiums charged by insurers licensed pursuant to the provisions of

§ 38a-794 for insurance procured by such licensee less any returned premiums.

[Note: Please see the Surplus Lines chart for further information.]

Tax Rate:

§§ 12-202; 12-210

1.5% domestic and foreign insurers

Retaliation—December 2023

Tax Rate (cont.)

§ 12-202a

1.5% health care centers

§ 38a-277

4% nonadmitted insureds

§§ 38a-254; 38a-277

4% risk retention groups

§ 38a-91nn

Rate for Tax on Direct Premiums Collected by Captive Insurers

Amount of Gross Direct Premiums Less Returned

Premiums and Deductions

Rate

Less than $20,000,000

0.38%

Over $20,000,000 but not over $40,000,000

$76,000 plus the excess over $20,000,000

multiplied by 0.285%

Over $40,000,000 but not over $60,000,000

$133,000 plus the excess over $40,000,000

multiplied by 0.19%

Over $60,000,000

$171,000 plus the excess over $60,000,000

multiplied by 0.072%

Rate for Tax on Assumed Reinsurance Premiums Collected by Captive Insurers

Amount of Gross Assumed Reinsurance Premiums

Less Returned Premiums and Deductions

Rate

Less than $20,000,000

0.214%

Over $20,000,000 but not over $40,000,000

$42,800 plus the excess over $20,000,000

multiplied by 0.143%

Over $40,000,000 but not over $60,000,000

$71,400 plus the excess over $40,000,000

multiplied by 0.048%

Over $60,000,000

$81,000 plus the excess over $60,000,000

multiplied by 0.024%

§ 38a-743

4% surplus lines brokers

Retaliation—December 2023

Other Taxes and Assessments:

§§ 38a-49; 38a-51 Examination Assessment

Assess foreign insurers and fraternal benefit societies their portion of the total cost of all

examinations conducted, in addition to other taxes and fees paid.

§§ 38a-50; 38a-51 Valuation Assessment

Assess foreign insurers and fraternal benefit societies whose reserves have been valued during the

year a proportionate share of the total cost of valuations.

§§ 38a-47; 38a-48 Administrative Assessment for Department Expenses

Assess domestic insurers their portion of an amount equal to actual expenses of the insurance

department. Pay quarterly estimates of liability. If any assessment is not paid when due, a penalty

of $25, plus interest at a rate of 6% per year.

§ 31-344a Workers’ Compensation Administration Fund

An annual assessment, 4% of the total compensation and payments made by insurance carriers,

shall be made to cover the administrative expenses of the fund.

§ 31-354 Second Injury Fund

Second injury and compensation assurance fund may assess 2.25% of total amount expended on

workers’ compensation claims to finance fund.

§ 19a-7j Health and Welfare Fee Assessment

Assess domestic insurer or health care centers doing life insurance or health insurance business in

this state.

§ 38a-556 Health Insurance Pool

Allows assessment for losses of the pool in proportion to health insurance premium written.

§ 38a-841 Connecticut Insurance Guaranty Association

The Connecticut Insurance Guaranty Association may assess insurers writing property or casualty

insurance coverage in the account with the deficiency no more than 2% of the net direct written

premium.

§ 38a-866 Connecticut Life and Health Insurance Guaranty Association

The Connecticut Life and Health Insurance Guaranty Association may assess no more than 2% of

direct written premium on life and health insurance coverage written for account or subaccount

with deficiency, plus an assessment for administrative expenses, which may be made on a non-

pro-rata basis.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 38a-1083(c)(7) Powers of Exchange

Charge assessments or user fees to health carriers that are capable of offering a qualified health

plan through the exchange or otherwise generate funding necessary to support the operations of

the exchange.

Exclusions and Deductions:

§ 38a-604 Fraternal Benefit Societies

Fraternal benefit societies are exempt from the payment of insurance premium taxes.

§ 12-210a Group Health

Foreign life insurers may exclude the entire amount of benefits paid to Connecticut residents from

the calculation of group health insurance policies premiums, provided their domicile provides a

similar deduction for all life insurers.

§ 12-210 Ocean Marine

Excludes ocean marine insurance from calculation for foreign insurers.

Credits and Offsets:

For more information on Connecticut business tax credits, please see the Connecticut Business

Tax Credits: Overview of Connecticut Business Tax Credits available on the Connecticut

Department of Revenue Services’ website at https://portal.ct.gov/drs.

§ 38a-48 Insurance Department Assessment

Certain local domestic insurance companies, as defined in § 12-201, may be entitled to a credit

against their insurance premium tax equal to 80% of the assessment paid under § 38a-48 during

the calendar year to the Connecticut Insurance Department.

§ 38a-866(h) Connecticut Life and Health Insurance Guaranty Association

The assessment may be 100% offset against the premium tax liability or health care center

liability, taken over a period of five successive tax years following the year of payment of the

assessment, at the rate of 20% per year of the assessment paid to the association. If any

assessments have been refunded, the insurer shall be required to pay an amount equal to the total

amount that has been claimed as an offset against the premium tax liability or health care center

liability. An insurer may transfer any offset to an affiliate.

Retaliation—December 2023

Credits and Offsets (cont.)

§ 38a-841(c) Connecticut Insurance Guaranty Association

The assessment may be 100% offset against the premium tax liability, taken over a period of five

successive tax years following the year of payment of the assessment, at a rate of 20% per year of

the assessment paid to the association. If any assessments have been refunded, the insurer shall be

required to pay an amount equal to the total amount that has been claimed as an offset against the

premium tax liability. An insurer may transfer any offset to an affiliate.

§ 12-211a Limitations on Credits

The amount of tax credits otherwise allowable against the taxes imposed by §§ 12-202; 12-212;

and 12-202a, the gross premiums taxes on domestic and foreign insurance companies and health

care centers, for any calendar year may not exceed 30% for certain credits, 55% for certain

credits, and 70% for certain credits, of the amount of tax due for the calendar year prior to the

application of such credit or credits. For purposes of this limitation the credit or credits do not

include the guaranty association assessment offsets.

Payment Due Dates:

§ 12-205

Return due Mar. 1 for the taxes imposed by §§ 12-202; 12-212; and 12-202a, the gross premiums

taxes on domestic and foreign insurance companies and health care centers.

§ 12-204c; Conn. Agencies Regs. § 12-204c-1

For the taxes imposed by §§ 12-202; 12-212; and 12-202a, quarterly estimated tax payments are

required if the tax shown on the current year’s return is $1,000 or more. Estimated tax payments

are due Mar. 15, June 15, Sept. 15 and Dec. 15. Required installments are: Mar. 15, 30% of

required annual payment; June 15, 30% of required annual payment; Sept. 15, 20% of required

annual payment; and Dec. 15, 20% of required annual payment. No addition to tax if estimated

tax payments equal or exceed 90% of the tax shown on the current year’s return or 100% of the

tax shown on the preceding year’s return, whichever is less.

§ 38a-91nn

Return due Mar. 1 for the gross premiums tax imposed by § 38a-91nn on captive insurers.

§ 38a-277

Quarterly returns due for the tax on nonadmitted insurers as follows:

Calendar Quarter

Due Date

Jan. 1 to Mar. 31

May 15

April 1 to June 30

Aug. 15

July 1 to Sept. 30

Nov. 15

Oct. 1 to Dec. 31

Feb. 15

Retaliation—December 2023

Payment Due Dates (cont.)

§§ 38a-277; 38a-254

Return due Mar. 1 for risk retention groups.

§ 38a-743

Quarterly returns due for the tax on surplus lines brokers as follows:

Calendar Quarter

Due Date

Jan. 1 to Mar. 31

May 15

April 1 to June 30

Aug. 15

July 1 to Sept. 30

Nov. 15

Oct. 1 to Dec. 31

Feb. 15

Penalties:

§ 12-206

Penalty: 10% of the tax not paid on or before the due date, or $50, whichever is greater.

Interest: 1% per month of the tax not paid on or before the due date.

§ 38a-277

Penalty: 10% of the tax not paid on or before the due date, or $75, whichever is greater.

Interest: 1% per month of the tax not paid on or before the due date.

§ 38a-743

Penalty: 10% of the tax not paid on or before the due date.

Interest: 1% per month of the tax not paid on or before the due date.

Extensions:

§ 12-205

Extension request due Mar. 1

Retaliatory Law:

§ 12-211

If the premium or income or other taxes or any fees, fines, penalties, claims or deposits imposed

on Connecticut insurers are in excess of those Connecticut charges foreign insurers, figured on an

aggregate state-wide basis, retaliation will occur. Any tax obligation imposed by a city, county or

other political subdivision will be deemed to be imposed by the state. This does not apply to

guaranty fund assessments except where another state imposes upon Connecticut insurers

retaliatory charges for these assessments.

Retaliation—December 2023

FEES

Most fees are not included on the insurance premiums tax return. They are handled on a retaliatory basis

by the insurance department.

Insurers’ Fees:

§§ 38a-11; 38a-53; 38a-740-11; 38a-91bb; 38a-479

Licensing fees:

License issued to domestic insurer ............................................................................................ $200

Filing documents prerequisite to issuance of license ................................................................... 220

Filing documents prerequisite to issuance of license for health care center ............................. 1,350

Filing additional papers required by law........................................................................................ 30

Annual renewal certificate of authority: domestic insurer ........................................................... 200

Annual renewal certificate of authority: foreign insurer .................................................................. 0

Amended certificate of authority ................................................................................................. 200

Medical discount plan license issued or renewed ........................................................................ 625

Preferred provider networks for each license fee issued or renewed ........................................ 2,750

Life settlement provider; initial application ................................................................................... 26

Life settlement provider; issued or renewed license ...................................................................... 40

Pharmacy benefit manager application fee for each registration issued or renewed ................... 100

Captive insurance company: initial and renewal license ............................................................. 375

Captive insurance company nonrefundable application fee......................................................... 800

Duplicate license fee ...................................................................................................................... 50

Annual statement:

Domestic insurers .......................................................................................................................... 50

Foreign insurers ............................................................................................................................... 0

Annual and quarterly late filing fee ............................................................................... 175 per day

Miscellaneous services:

Certificate of compliance, organization, reciprocity or valuation .................................................. 40

Certified copy of license to a company .......................................................................................... 40

Certified copy of report or certificate of condition of company for another state ......................... 40

Service of process .......................................................................................................................... 50

Filing hospital liens ........................................................................................................................ 50

Sma

ll claims notice ........................................................................................................................ 15

Filing of independent audited financial report ............................................................................... 30

Certificate for deposits held ......................................................................................................... 315

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 38a-11; 38a-53; 38a-740-11; 38a-91bb; 38a-479 (cont.)

Agent appointments:

Appointment application filing fee (Connecticut domiciled only, unless reciprocal) ................. $50

Appointment fee—domestic ........................................................................................................ 100

Appointment fee—foreign:

If the premium tax rate in the appointment company’s state of domicile is less

than the Connecticut 1.5% premium tax rate ................................................................... 20

If the premium tax rate in the appointing company’s state of domicile is equal

to or greater than the Connecticut 1.5% premium tax rate ............................................... 80

Appointment fee—Alaska, Arizona, Colorado, Hawaii, Illinois, Indiana, Maryland,

Missouri, Montana, New York, Oregon and Rhode Island domiciled insurers ........................ 0

Generally, agent appointment fees are paid by the insurer; they are renewed biennially.

Surplus lines companies:

Annual fee .................................................................................................................................... 126

Initial non-refundable applicable filing fee ............................................................................... 1,000

Rating organizations:

Fee for each license issued ........................................................................................................... 200

Fraternal benefit societies:

For each license and renewal ......................................................................................................... 10

Receiving and filing annual statement ........................................................................................... 20

Service of process .......................................................................................................................... 50

Filing certified copy of charter ...................................................................................................... 15

Filing any additional papers required by law ................................................................................. 15

Annual and quarterly late filing fee ................................................................................ 175 per day

Duplicate license fee ...................................................................................................................... 50

Foreign only:

Certified copies of certificate of compliance ................................................................................. 15

Certified copy of report or certificate of condition of company to be filed in any other state ....... 15

Certified copy of permit ................................................................................................................. 15

Retaliation—December 2023

Other than Insurers’ Fees:

§ 38a-11; Bulletin L-22

License fees:

Producer (individual), initial fee ................................................................................................ $140

Producer (business entity), initial fee ........................................................................................... 130

Producer—Model Travel only (individual and business), initial fee ........................................... 750

Producer (individual and business), reinstatement and amendment fee ...................................... 130

Producer (individual and business), biennial renewal fee ............................................................ 160

Producer—Model Travel only (individual and business), biennial renewal fee .......................... 650

Producer (individual and business),

late renewal fee payable within one year of license renewal date ......................................... 320

Producer—Model Travel only (individual and business),

late renewal fee payable within one year of license renewal date ...................................... 1,300

Car rental agency (permit), initial and reinstatement fee ............................................................... 80

Car rental agency (permit), biennial renewal fee ........................................................................... 80

Casualty adjuster (all), initial and reinstatement fee .................................................................... 130

Casualty adjuster (all), biennial renewal fee .................................................................................. 80

Certified insurance consultant (all), initial, reinstatement and amendment fee ........................... 300

Certified insurance consultant (all), biennial renewal fee ............................................................ 250

Fraternal agent (all), initial, reinstatement and amendment fee ................................................... 130

Fraternal agent (all), biennial renewal fee ..................................................................................... 80

Motor vehicle physical damage appraiser (all), initial and reinstatement fee .............................. 130

Motor vehicle physical damage appraiser (all), biennial renewal fee ............................................ 80

Portable electronics initial application ......................................................................................... 600

Portable electronics for each license renewed ............................................................................. 450

Public adjuster (all), initial and reinstatement fee ........................................................................ 300

Public adjuster (all), biennial renewal fee .................................................................................... 250

Reinsurance intermediary broker and manager (all), initial and reinstatement fee ..................... 675

Reinsurance intermediary broker and ma

nager (all), biennial renewal fee.................................. 625

Surety bail bond agent (all), initial and reinstatement fee ........................................................... 250

Surety bail bond agent (all), biennial renewal fee ....................................................................... 100

Surplus lines broker (all), initial and reinstatement fee ............................................................... 675

Surplus lines broker (all), biennial renewal fee ........................................................................... 625

Life settlement broker (all), initial and reinstatement fee .............................................................. 66

Life settlement broker (all), annual renewal fee ............................................................................ 40

Life settlement registration (for producers with life authority) ..................................................... 26

Third party administrator (all), initial and reinstatement fee ....................................................... 500

Third party administrator (all), annual renewal fee (includes annual report fee) ........................ 450

Third party administrator (all), registration fee ............................................................................... 0

§ 38a-784 Producer renewal changes

Effective Jan. 1, 2018, licensees will have until the last day of their birth month to renew their

license. Business entity licensees will continue to have an expiration date of Jan. 31 of every

even-numbered year.

Retaliation—December 2023

Other than Insurers’ Fees (cont.)

§ 38a-11; Bulletin L-22 (cont.)

Examination fees:

Producers’ exams/fee per line of authority not including testing service fee, if any ................... $15

Casualty adjuster’s exam, not including testing service fee, if any ............................................... 20

Motor vehicle physical damage appraisers not including testing service fee, if any ..................... 80

Certified insurance consultants not including testing service fee, if any ....................................... 26

Surplus lines brokers not including testing service fee, if any ....................................................... 20

Public adjuster not including testing service fee, if any ................................................................ 15

Miscellaneous:

Certificate of license status (Letter of Certification)................................................................ no fee

Duplicate license ...................................................................................................................... no fee

Verify and print a license at: State Based Systems.

CONTACT PERSON

Department of Revenue Services

Chrystal Hale: (860) 541-3289

Insurance Department, Financial Analysis & Compliance (Insurers)

Bill Mitchell: (860) 297-3833

Insurance Department, Licensing Division (Other than Insurers)

Jill Marocchini: (860) 297-3975

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

DELAWARE

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Del. Code Ann. tit. 18 § 702

Gross direct premium income, including fees, assessments and other considerations, on insurance

contracts other than workers’ compensation and employers’ liability after deducting returned

premiums, and amount returned as dividends. Wet marine and transportation insurance premiums

are not included, nor are considerations received for annuity contracts. Corporate and trust owned

life insurance is not included to the extent itemized separately below.

Tax Rate:

Delaware’s premium tax rate is 2% as follows:

1.75% per tit. 18 § 702 plus 0.25% per tit. 18 § 707

tit. 18 § 702(c)(1) Corporate and Trust Owned Life Insurance

Premiums itemized separately for employer and trust owned life insurance policies are taxed on a

graduated basis, based on net premiums per case. A “case” is all contracts issued to a single

employer or trust. In subsequent years after the first, the premium tax rate shall not be higher than

the rate established for the preceding year.

Net Premiums Per Case

Premium Tax Rate

First $10,000,000

$10,000,001 to 24,999,999

1.5%

$25,000,000 to 99,999,999

1.25%

$100,000,000 and over

These policies are excluded from guaranty fund coverage.

tit. 18 § 6914

0.002% on each dollar of direct premiums collected or contracted for by each captive insurance

company, except for a sponsored captive insurance company, and each protected cell of a

sponsored captive insurance company, up to a maximum tax of $200,000.

0.001% on each dollar of assumed reinsurance premiums collected or contracted for by each

captive insurance company, except for a sponsored captive insurance company, and each protected

cell of a sponsored captive insurance company, up to a maximum tax of $110,000.

Captive companies are not subject to retaliatory tax.

Retaliation—December 2023

Tax Rate (cont.)

tit. 18 § 8004

Risk retention group taxed same as foreign admitted insurer.

Other Taxes and Assessments:

tit. 18 § 702 Wet Marine and Transportation Insurance

Pay 5% tax on underwriting profit for wet marine and transportation insurance.

tit. 8 §§ 501-504 Corporation Franchise Tax

Domestic insurers shall pay to the division of corporations an additional tax of no less than $175,

no more than $180,000 based on the lesser of the following two computations:

Capital stock less than 5,000 shares

$175

Capital stock of 5,001 to10,000 shares

250

For each additional 10,000 shares, or portion thereof

No-par capital of $500,000 or less

$175

No-par capital of 500,001 to 1,000,000 shares

250

For each $1,000,000 or part thereof of additional

assumed, no-par capital

Additional calculations may be required for the second table.

tit. 18 § 703 Privilege Tax

Domestic insurers shall pay a privilege tax due and payable at same time as premium tax and

estimates. Tax based on gross annual receipts (defined in tit. 18 § 703) at rates on table:

If annual gross receipts are:

The annual privilege tax shall be:

Under $1,000,000

Exempt

$1,000,000 to $5,000,000

$10,000

$5,000,001 to $10,000,000

25,000

$10,000,001 to $20,000,000

45,000

$20,000,001 to $30,000,000

65,000

$30,000,001 to $40,000,000

85,000

over $40,000,000

95,000

(cont.)

Retaliation—December 2023

Other Taxes and Assessments (cont.)

tit. 18 § 703 Privilege Tax (cont.)

For each $100,000 of gross salaries, wages and other compensation paid by the Delaware

domestic insurer and its affiliates for employee services performed within Delaware, the domestic

insurer is entitled to a credit of $1,500 for the year. For Delaware domestic insurers that do not

maintain their principal offices in the state, the amount of the tax due may not be reduced to less

than $15,000.

Delaware domestics must include the privilege tax in their quarterly prepayments. Any domestic

insurer that writes 50% or more of its total premium on persons or property located in Delaware

is exempt from the privilege tax.

tit. 19 § 2391; tit. 18 § 704 Workers’ Compensation Premium Tax

Each insurer required to pay tax on workers’ compensation premiums shall pay a tax of 2% of

premiums to the secretary of finance. This tax is in lieu of all other taxes on premiums. This tax is

collected by the insurance department along with other premium tax.

tit. 19 § 2392 Workers’ Compensation Administrative Assessment

Assessment of workers’ compensation insurance carriers for administrative expenses of state

based on amount of compensation payments and awards. Computed annually. Not considered in

the retaliatory computation.

tit. 19 § 2395 Second Injury Fund and Contingency Fund

Each year workers’ compensation insurers shall pay a sum not to exceed 1% of premiums for

fund.

tit. 18 § 6832 Medical Malpractice Joint Underwriting Association

Insurers writing casualty insurance and health insurance, and health service corporations shall be

assessed share of deficit. Not considered in the retaliatory computation.

→ tit. 18 § 2415 Fraud Prevention Bureau Assessment

Insurers are assessed $900 [$1,050 eff. 7/27/2023] annually to provide funds for the operation of

the fraud prevention bureau. Fee paid annually as part of the premium tax filing, but goes directly

to fraud prevention bureau, not to state’s general fund. Not considered in the retaliatory

computation.

Note: A foreign insurer whose state of domicile does not have a similar policy excluding the

state’s fraud fee from retaliatory tax must include the fraud fee in the home state calculation

section on the retaliatory tax form.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

tit. 18 § 4208 Property and Casualty Guaranty Association

The property/casualty guaranty association may assess member insurers no more than $150 a year

for administrative costs, plus an amount that is equal for every company to be paid to the

insurance commissioner’s regulatory revolving fund. A third type of assessment is based on net

direct written premium of the member insurers for the preceding calendar year and is assessed in

case of an insolvency. Revolving fund assessments may not exceed 0.1% of premiums for the

year, and these assessments combined with assessments on account of insolvencies may not

exceed 2% of premiums.

tit. 18 § 4409 Life and Health Guaranty Association

The life/health guaranty association may assess member insurers no more than $300 a year for

administrative costs, plus an amount that is equal for every company to be paid to the insurance

commissioner’s regulatory revolving fund. A third type of assessment is based on net direct

written premium of the member insurers for the preceding calendar year and is assessed in case of

an insolvency. Revolving fund assessments may not exceed 0.1% of premiums for the year, and

these assessments combined with assessments on account of insolvencies may not exceed 2% of

premiums.

tit. 18 § 712 Preemption

The fees, charges and taxes imposed by the state shall be in lieu of all county and municipal

licenses, fees and taxes except property taxes.

Exclusions and Deductions:

tit.18 §§ 6224; 6226 Fraternals

Fraternals are exempt from the payment of premium taxes. However, they are required to submit

an annual form and pay annual statement and certificate of authority renewal fees.

Fraternal fees are subject to retaliatory tax.

Credits:

tit. 30 § 2033 Travelink Traffic Mitigation Act

Provides credit against premium tax based on number of employees participating in program

designed to reduce traffic congestion.

tit. 18 § 4413; Domestic/Foreign Insurers Bulletin No. 7 Life and Health Guaranty Association

Assessments by the life and health guaranty association, other than for administrative expenses,

may be taken as a credit against the premium tax at a rate of 20% a year for five years, beginning

the year after the assessment is paid. Guaranty fund assessment credits will no longer be factored

into retaliatory tax calculations.

Retaliation—December 2023

Credits (cont.)

tit. 18 § 4219; Domestic/Foreign Insurers Bulletin No. 7 Property and Casualty Guaranty Association

Assessments may be taken as a credit against the premium tax at a rate of 20% a year for five

years, beginning the year after the assessment is paid. Premium tax offset does not apply to

administrative assessments. Guaranty fund assessment credits will no longer be factored into

retaliatory tax calculations.

tit. 18 § 6832 Medical Malpractice Joint Underwriting Association

Assessments by JUA may be recouped through a surcharge on premiums not to exceed 2% of

future annual premiums or through a credit against current or future premium taxes.

§ 20A-102 Veterans’ Opportunity Credit

Employers hiring qualified veterans shall receive a credit equal to 10% of a qualified veteran’s

wages, up to a maximum of $1,500. Employers may take the credit in the year the qualified

veteran is hired and the two subsequent tax years.

tit. 30 § 2083 New Economy Jobs Program Employment

Effective July 1, 2016, qualified employers and qualified retained employers shall be eligible

during their first certified year and for the nine taxable years thereafter for credits against their

insurance premiums tax liability.

Payment Due Dates:

tit. 18 § 702; tit. 19 § 2391 Premium Tax

Return due Mar. 1. Pay 50% of estimated current year liability on April 15, 20% on June 15, 20%

on Sept. 15 and 10% on Dec. 15 of current year. Workers’ compensation tax payable on same

schedule. Wet marine and transportation insurance tax due by June 1.

tit. 8 § 504 Franchise Tax for Domestic Insurers

Return due Mar. 1. If liability for current year is expected to be $5,000 or more, a tentative tax

shall be paid on the following schedule: 40% due June 1 of the current year, 20% on Sept. 1, 20%

on Dec. 1 and the remainder due with the report on the following Mar. 1. The franchise tax is

collected by the Division of Corporations.

Retaliation—December 2023

Penalties:

tit. 18 § 702(f)

In case of any underpayment of estimated tax required by this section, there shall be added to the

tax for the taxable year an amount determined at the rate of 1.5% per month, or fraction thereof,

upon the amount of the underpayment for the period of the underpayment. The period of the

underpayment shall run from the date the estimated tax or installment was required to be paid to

the date on which actually paid. No penalty for underpayment shall be imposed if the quarterly

estimated tax payments equal 100% of the total tax due and paid for the previous tax year.

Extensions:

No specific provision for extensions.

Retaliatory Law:

tit. 18 § 532

If any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit

requirements, etc. imposed on Delaware insurers or agents are in excess of those Delaware

imposes on similar insurers, a retaliatory tax will be imposed. Shall not apply to personal income

tax or to ad valorem taxes on real or personal property or to special purpose obligations or

assessments imposed by another state in connection with insurance other than property insurance.

FEES

If no fee is listed for a particular license or service, no fee will be charged. There is no retaliatory fee in

this case.

Insurers’ Fees:

tit. 18 §§ 701; 6903; 6409; 8004

*Fees marked with asterisks considered in the retaliatory tax computation.

Certificate of authority:

Application for initial certificate of authority, including all documents submitted

as part of such application ................................................................................................ $1,000

Issuance of certificate of authority (and duplicate or replacement) ............................................. 150

*Annual continuation ................................................................................................................... 150

Reinstatement ............................................................................................................................... 150

Amendment .................................................................................................................................. 150

Charter documents (other than those filed with application for certificate of authority).

Filing amendments to certificate of incorporation, articles of incorporation,

charter, bylaws, power of attorney (as to reciprocal insurers) and to other

constituent documents of the insurer ....................................................................................... 10

Retaliation—December 2023

Insurers’ Fees (cont.)

tit. 18 §§ 701; 6903; 6409; 8004 (cont.)

*Fees marked with asterisks considered in the retaliatory tax computation (cont.)

Annual statement:

*Annual statement of insurer ..................................................................................................... $150

Insurance holding company or member of insurance holding company system, filing:

Initial registration statement ........................................................................................................ 100

Amendment .................................................................................................................................. 100

Form A filing ............................................................................................................................ 1,000

Insurance premium finance company:

Original license ............................................................................................................................ 500

Annual continuation ..................................................................................................................... 500

Fraternal associations:

Original license ............................................................................................................................ 100

*Renewal ..................................................................................................................................... 100

*Annual statement ....................................................................................................................... 100

Form filings:

For each insurance policy or annuity contract or applications ..................................................... 150

Rate changes or deviations ........................................................................................................... 100

In addition to the filing fee, may be required to pay expenses for the review.

HMO:

Application fee for certificate of authority .................................................................................. 750

Annual report ............................................................................................................................... 500

Managed care organizations:

Original license ............................................................................................................................ 500

Annual continuation ..................................................................................................................... 150

Dental plan:

Dental plan application fee .......................................................................................................... 150

Dental plan renewal ..................................................................................................................... 150

Risk retention group:

Initial registration ......................................................................................................................... 150

*Annual renewal .......................................................................................................................... 150

*Annual statement ....................................................................................................................... 100

Risk purchasing group:

Initial registration ......................................................................................................................... 150

Annual renewal ............................................................................................................................ 150

Retaliation—December 2023

Insurers’ Fees (cont.)

tit. 18 §§ 701; 6903; 6409; 8004 (cont.)

*Fees marked with asterisks considered in the retaliatory tax computation. (cont.)

Accredited reinsurer and/or surplus lines insurer:

Initial registration ....................................................................................................................... $150

Annual renewal ............................................................................................................................ 150

Companies approved as both accredited reinsurer and surplus lines carrier must pay both fees.

Vending machine license ........................................................................................................ each year 100

Captive insurer—companies are not subject to retaliatory tax:

Initial license, nonrefundable ....................................................................................................... 300

Renewal, annually ........................................................................................................................ 400

Application fee, nonrefundable .................................................................................................... 300

Processing fee, nonrefundable .................................................................................................. 3,200

Miscellaneous services:

Service of process against unauthorized insurers .......................................................................... 25

Certified copy of insurer certificate of authority or of any license issued under

this title .................................................................................................................................... 10

Copies of documents on file in the department $0.50 per page, minimum ..................................... 5

Certifying and affixing official seals ............................................................................................. 10

Agents’ appointment:

*One-time appointment of agent, each insurer .............................................................................. 50

One-time appointment of fraternal representative each society or association .............................. 50

Insurers must appoint agent who will represent them and pay the permanent appointment fee.

Delaware does not retaliate on fees except as noted.

Producer Licensing Fees:

tit. 18 § 701

Producers:

Initial license for producers or limited lines producer ................................................................. 100

Resident license renewal, biennially ............................................................................................ 100

Nonresident license renewal, biennially ...................................................................................... 100

Reinsurance intermediary:

Initial license ................................................................................................................................ 250

Annual continuation ..................................................................................................................... 100

Surplus lines broker:

Initial license, resident and nonresident ....................................................................................... 250

Resident license renewal, biennially ............................................................................................ 200

Nonresident license renewal, biennially ...................................................................................... 200

Retaliation—December 2023

Producer Licensing Fees (cont.)

tit. 18 § 701 (cont.)

Fraternal representative:

Initial license, resident and nonresident ..................................................................................... $100

Resident license renewal, biennially ............................................................................................ 100

Nonresident license renewal, biennially ...................................................................................... 100

Adjuster:

Initial license, resident and nonresident ....................................................................................... 100

Resident license renewal, biennially ............................................................................................ 100

Nonresident license renewal, biennially ...................................................................................... 100

Motor vehicle appraiser:

Initial license, resident and nonresident ....................................................................................... 100

Resident license renewal, biennially ............................................................................................ 100

Nonresident license renewal, biennially ...................................................................................... 100

Apprentice:

License (valid for one year) ........................................................................................................... 50

Amendments to license .................................................................................................................. 25

DEPOSITS

tit. 18 § 513

Foreign insurers must maintain a deposit of $100,000 in this or another state and domestic

insurers must maintain a deposit of $100,000 in Delaware. Surety insurers (domestic and foreign)

must add $10,000 to that amount for the protection of Delaware policyholders only, unless they

have a paid-up capital and surplus of $10 million and have deposited $400,000 in any state.

Workers’ compensation insurers (domestic and foreign) must add $100,000 to that amount for the

protection of Delaware policyholders only. Domestic title insurers must maintain a deposit of

$25,000.

CONTACT PERSON

Jeannine Neal: (302) 674-7339; Jeannine.Neal@Delaware.gov

Paulette Morris: (302) 674-7383; Paulette.Morris@Delaware.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

DISTRICT OF COLUMBIA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

D.C. Code § 47-2608; Bulletin 00-Fl-001-01/06

Based on premium and consideration received on all insurance contracts, including policy and

membership fees less premiums received for reinsurance assumed, premiums returned and

dividends paid in cash or used by policyholders in payment of renewal premiums. By department

policy it includes marine insurance. Annuity considerations and premiums from contracts issued

in connection with qualified retirement plans are exempt from tax.

Tax Rate:

§§ 31-205; 31-3403.01; 31-3514.01; 47-2608

2% of direct written premiums for accident and loss of health; 1.7% of direct written premiums

for all other lines.

2% of direct written premium for HMOs.

§ 31-4103

Foreign risk retention groups taxed on the same basis as a foreign admitted insurer.

§ 31-3931.12 Captive Insurers

Direct written premiums:

0.250% on first $25 million of net direct written premiums

0.150% on next $25 million

0.050% on each dollar thereafter

Reinsurance:

0.225% on first $25 million of assumed reinsurance premiums

0.150% on next $25 million

0.025% on each dollar thereafter

Captive insurers pay annual minimum tax of $7,500. This amount can be pro-rated for a captive

licensed during the last quarter of the calendar year.

Domestic risk retention groups formed as captives:

Direct written premiums:

0.380% on first $20 million of net direct written premiums

0.250% on next $20 million

0.180% on each dollar thereafter

(cont.)

Retaliation—December 2023

Tax Rate (cont.)

§ 31-3931.12 Captive Insurers (cont.)

Domestic risk retention groups formed as captives pay annual minimum tax of $15,000. This

amount can be pro-rated for a captive licensed during the last quarter of the calendar year.

The total tax paid by captive insurers and domestic risk retention groups formed as captives shall

not exceed $100,000 in any year.

Other Taxes and Assessments:

§ 32-1541 Workers’ Compensation Administration Costs

Workers’ compensation insurers assessed for administrative expenses. Total cost prorated among

insurers writing workers’ compensation coverage.

§ 31-1203 Insurance Regulatory Trust Fund

Each insurer and each health maintenance organization shall be assessed an amount based on a

percentage of its direct gross receipts for the preceding year. Minimum assessment is $1,000. The

rate of assessment shall be established by the mayor annually but not to exceed 0.3%. Captive

insurers are exempt from insurance regulatory trust fund assessments.

§ 31-5505 Property and Casualty Guaranty Association

Assess no more than 2% of direct written premium on the kinds of insurance in the account with

the deficiency. According to § 31-3931.16, captive insurers are exempt from any insolvency

guaranty fund.

§ 31-5406 Life and Health Guaranty Association

Association may assess insurers a fair and reasonable amount for the purpose of administrative

costs plus up to 2% of the insurer’s average premiums received in the District of Columbia on

policies and contracts covered by the account during the three calendar years preceding the year

in which the insurer was declared insolvent. According to § 31-3931.16, captive insurers are

exempt from any insolvency guaranty fund.

§ 31-3430 HMO Insolvency protection; assessment

When a health maintenance organization in the District is declared insolvent by a court of

competent jurisdiction, the commissioner may levy an assessment on health maintenance

organizations doing business in the District to pay claims for uncovered expenditures for

enrollees who are residents of the District and to provide continuation of coverage for enrollees

not covered under § 31-3414. The commissioner may not assess in any one calendar year more

than 2% of the aggregate premium written by each health maintenance organization in the District

the prior calendar year.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 44-301.9 Health Benefits Plan Members Bill of Rights Administrative Costs

Health insurers assessed for administrative expenses. Total cost prorated among insurers writing

accident and health coverage.

§ 31-3171.03 District of Columbia Health Benefit Exchange Authority Fund

Health insurers assessed for administrative expenses of District of Columbia Health Benefit

Exchange Authority. Total cost prorated among insurers writing at least $50,000 in accident and

health coverage.

Exclusions and Deductions:

§§ 31-205; 31-5320; 47-2611 Exemptions

Fraternal societies exempt from premium tax.

Credits:

§§ 31-5231 to 31-5239; 26-A D.C. Mun. Regs. (DCMR) 5600 Certified Capital Companies

Insurers may take a premium tax credit for investments in certified capital companies. An insurer

may claim tax credits in an amount not to exceed 25% of the total tax credits allocated to the

insurer per year. In addition, the annual amount of the tax credits claimed by an insurer may not

exceed the insurer’s tax liability to the District. Any unused tax credits may be carried forward

indefinitely until utilized. An insurer may transfer tax credits to another insurer. The sum of the

total annual tax credits claimed by the original insurer and the insurer receiving the credits may

not exceed the maximum amount of tax credits the original insurer could have claimed had it not

transferred its credits.

§ 31-5410 Life and Health Guaranty Association

A member insurer may offset assessments against the premium tax at a rate of 10% per year for

10 years, beginning the year after the assessment was paid.

§§ 47-4801 to 47-4812 District of Columbia Low-Income Housing Tax Credit

Insurers may take a premium tax credit in an amount up to 25% of the value of the federal low-

income housing tax credit received with respect to the qualified project. The District of Columbia

low-income housing tax credit may be claimed equally for 10 years, subtracted from the tax

otherwise due for each taxable period and shall not be refundable; provided, that the credit may

not be taken against any tax that is dedicated in whole or in part to the Healthy DC and Heath

Care Expansion Fund established by § 31-3514.02.

Retaliation—December 2023

Payment Due Dates:

§ 31-3931.12

Return due before Mar. 1. Captive insurers and domestic risk retention groups formed as captives

tax return due not later than Mar. 2.

§ 47-2608

If tax liability in prior year was $1,000 or more, pay an installment of 50% of last year’s tax, due

on June 1 with the balance due before Mar. 1. [Note: not applicable to captives and domestic risk

retention groups formed as captives.]

Penalties:

§§ 31-205; 47-2609

Penalty of 8% per month for failure to pay taxes by Mar. 1, plus revocation of certificate of

authority until tax and penalty paid.

§ 31-1204 Insurance Regulatory Trust Fund

Penalty of 10% of the assessment plus interest of 0.5% per month until assessment paid in full.

Extensions:

No specific provision for extension.

Retaliatory Law:

§ 47-2610

When a state charges District of Columbia domiciled companies aggregate taxes, which exceed

the aggregate taxes that the District charges similar companies, retaliation occurs. When a state

charges fines, deposits and other obligations in excess of those the District charges foreign

insurers, retaliation may occur. This does not apply to personal income taxes, ad valorem taxes on

real or personal property, and any special assessments charged by a state in connection with

insurance other than property insurance. The District of Columbia does not include fees in the

retaliatory tax computation.

Retaliation—December 2023

FEES

The District does not retaliate on fees for companies or producers.

Insurers’ Fees:

§§ 31-2502.41; 31-4302; 31-2502.02; 31-4103; 47-2606; 31-3931.09; 31-3937.09(e);

DCMR 26-A3500.1; DCMR 26-A3515.36

Insurers:

Articles of incorporation filed .................................................................................................... $300

Certificate of authority annual fee ............................................................................................... 200

Producers’ appointments (renewed annually) ................................................................................ 25

Insurance premium finance companies annual license fee .......................................................... 150

Health Maintenance Organization:

Certificate of authority filing fee, initial ...................................................................................... 500

Certificate of authority filing fee, renewal ................................................................................... 200

Producers’ appointments (renewed annually) ................................................................................ 25

Fraternals:

Certificate of authority annual fee ................................................................................................. 50

Captives:

Certificate of authority initial & annual renewal fee (captives & domestic RRGs) .................... 300

Foreign risk retention groups and purchasing groups:

Registration and certification ....................................................................................................... 250

Producer Licensing Fees:

26-A DCMR § 105

Producer license:

Renewed biennially ...................................................................................................................... 100

Surplus lines authority:

Renewed biennially ...................................................................................................................... 200

Retaliation—December 2023

DEPOSITS

§ 31-4315

Deposit of $100,000 required for life insurance companies. Domestic insurers deposits may be

lower, at the discretion of the commissioner. Foreign companies may meet requirement by

making a deposit with any state.

§ 31-3412

Deposit of $300,000 required for HMOs.

CONTACT PERSON

Company and Producers Licensing

Sheila Johnson-Parker: (202) 442-7795; sheila.parker@dc.gov

Captives and domestic RRGs

Dana Sheppard: (202) 442-7820; dana.sheppard@dc.gov

Assessments

Julia May: (202) 442-7842; julia.may@dc.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

FLORIDA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Fla. Stat. § 624.509

Gross premiums, risk premiums for title insurance; including assessments, membership fees, policy

fees, gross deposits received from subscribers to reciprocal and interinsurance agreements, annuity

premiums, minus reinsurance accepted and return premiums and assessments. No deductions

allowed for reinsurance ceded, cash surrender value paid, dividends paid or discounts or refunds

for direct or prompt payment. Wet marine and transportation insurance taxed separately.

Tax Rate:

§ 624.509

1.75% unless otherwise specified.

1% of gross receipts on annuity policies or contracts paid by the holders thereof in this state. The

premium tax shall not be imposed on receipts of annuity premiums or considerations if the tax

savings derived are credited to the annuity holders.

§§ 636.066; 624.509

1.75% prepaid limited health service organizations

§§ 624.509; 624.4094

1.75% on direct written premiums for bail bond policies beginning Jan. 1, 2015, amounts retained

by licensed bail bond agents or appointed managing general agents are excluded from taxable

premiums.

§ 636.0145

Any entity licensed under this chapter which provides services solely to Medicaid recipients under

a contract with Medicaid shall be exempt from §§ 636.017, 636.018, 636.022, 636.028, 636.034 and

636.066(1).

§§ 642.032; 624.509

1.75% legal expense insurance

Retaliation—December 2023

Tax Rate (cont.)

§§ 624.509; 627.7711

Any portion of the premium retained by a title insurance agent or agency is excluded from taxable

premiums.

§ 628.6015

1.6% assessable mutual insurers

§§ 627.944(3); 626.932(1)

4.94% foreign risk retention groups and surplus lines

§§ 627.943(4); 624.509

1.75% domestic risk retention groups

§ 624.4625(4)

1.6% of the gross amount of premiums, contributions, and assessments received by a corporation

not-for-profit self-insurance fund.

§ 624.4621(7)

1.6% of the gross amount of premiums, contributions, and assessments received by a group self-

insurance fund.

§ 624.46226(4)

1.6% of the gross amount of premiums, contributions, and assessments received by a public housing

authority’s self-insurance fund.

Other Taxes and Assessments:

§§ 624.510; 624.5105; Rule 12B-8.001(3)(d), F.A.C. Wet Marine and Transportation Insurance

0.75% of gross underwriting profit on wet marine and transportation insurance. Income tax credit,

firefighters’ pension fund credit, police officers’ retirement fund credit, and community

contribution credit (see below) are credited against this tax. Tax due Mar. 1.

§ 175.101 Firefighters’ Pension Fund

Municipalities and special fire control districts may levy excise tax of 1.85% of gross receipts on

premiums for policies on risks located within their respective jurisdictional boundaries. For multi-

peril policies, an apportionment of 70% property and 30% casualty should be applied for allocation

purposes. Due Mar. 1.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 185.08 Police Officers’ Retirement Fund

Municipalities may assess casualty insurers 0.85% of gross premiums covering property located

within city limits. For multi-peril policies that use a single combined property-casualty premium,

30% of that premium shall be used to calculate the “gross premiums” above. Due Mar. 1.

§ 624.515 State Fire Marshal Regulatory Assessment and Surcharge

Assess 1% on gross premiums collected on fire insurance insuring property in state, in addition to

premium tax, plus a surcharge at a rate of 0.1% of gross commercial premiums.

§ 641.58 Health Maintenance Organization Health Care Trust Fund

Assess every HMO, every prepaid health clinic, and every provider service network an annual

regulatory assessment, not to exceed 0.1% of gross premiums. Due April 1.

§§ 220.02 to 220.54; 220.1105 Corporate Income Tax

Code defines net taxable income, which is taxed at 5.5% for taxable years beginning prior to

January 1, 2019, and on or after January 1, 2022. For taxable years beginning January 1, 2019,

through December 31, 2020, the tax rate is 4.458%. For taxable year January 1, 2021, to December

31, 2021, the tax rate is 3.535%. For taxable years beginning on or after January 1, 2022, the tax

rate adjustments pursuant to this section are repealed and the tax rate imposed for purposes of

§§ 220.11(2) and 220.63(2) is 5.5%.

§ 440.51(1)(b) Workers’ Compensation Fund Administration

Compensation insurers (carriers and self-insurers) bear the prorated costs of administration for

workers’ compensation insurance. The amount assessed for administrative costs by the Department

of Revenue may be based a specific amount or as a percentage of net premiums payable as the

division may direct, not to exceed 2.75% of net premiums.

§ 440.49(8)(b) Special Disability (Second Injury) Fund

Insurers writing compensation insurance shall be assessed an amount to maintain the fund.

Assessments should be paid quarterly with workers’ compensation fund assessments.

§ 631.914 Workers’ Compensation Guaranty Corporation

To pay covered claims and reasonable costs, insurers may be assessed based on direct written

premium. Insurers, and self-insurance funds, may be assessed an amount not to exceed 2% of

premium. (Prior to July 1, 2016, the rate for self-insurance funds was not to exceed 1.5% of

premium. See Chapter 2016-170, Laws of Florida.) The department is authorized to levy additional

assessments of up to 1.5% of direct written premium if the assessments otherwise authorized are

insufficient.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 766.314 Birth-Related Neurological Injury Compensation Plan

Casualty insurance carriers, physicians and hospitals may be assessed to cover the plan’s losses,

awards and expenditures. (See subsections (4) and (5) of the statute.)

§ 631.819 HMO Assessments for Insolvency

All HMOs are assessed to cover insolvency of an HMO or long-term care insurer (effective June

7, 2019). The assessment for any calendar year may not exceed 0.5% of the HMO’s annual earned

premium revenue for non-Medicare and non-Medicaid contracts.

§§ 627.351; 627.311 Florida Automobile Joint Underwriting Association

Auto insurers may be assessed for losses of the JUA.

§ 627.351(2) Windstorm Joint Underwriting Association

Insurers licensed to transact property insurance may be assessed for losses of the JUA. Since July

1, 2002, the Windstorm Joint Underwriting Association has been part of the Citizens Property

Insurance Corporation.

§ 215.555(6)(b) Florida Hurricane Catastrophe Fund

If funds are inadequate, the board may direct the Office of Insurance Regulation to levy an

emergency assessment on direct premiums for all property and casualty lines of business, including

the property and casualty business of surplus line insurers, but not including workers’ compensation

or medical malpractice premiums. The insurer collects the assessment at the same time it collects

the premium.

§ 627.351(3) Political Subdivision; Casualty Insurance Joint Underwriting Association

Insurers licensed to write casualty insurance in the state may be assessed for the losses of the JUA.

§ 627.351(4) Medical Malpractice Joint Underwriting Association

Insurers licensed to write casualty insurance may be assessed for the losses of the JUA.

§ 627.351(5) Property and Casualty Joint Underwriting Association

Insurers licensed to issue property and casualty insurance may be assessed for the losses of the

JUA.

§ 627.351(6) Citizens Property Insurance Corporation

Insurers authorized to write property and casualty insurance but not including workers’

compensation or medical malpractice may be assessed for losses of the corporation.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 627.3515 Market Assistance Plan

All residential property insurers shall be assessed for the operating expenses of the MAP.

§§ 631.57; 624.509 Property and Casualty Guaranty Association

May assess member insurers no more than 2% net direct written premiums for kinds of insurance

in the account with the deficiency. Assessments shall constitute advances of funds from the insurer

to the association. An insurer may fully recoup such advances by applying a separate recoupment

factor to the premium of policies of the same kind or line as were considered by the office in

determining the assessment liability of the insurer or group. Recoupments are not taxable premium.

Additionally, an emergency assessment of no more than 4% is authorized if certified by the board.

§ 631.718 Life and Health Guaranty Association

May assess member for administrative expenses or examinations, plus an additional amount to

cover the costs of dealing with impaired or insolvent insurers.

For insolvencies other than long-term care insurers, the total amount of annual assessments may

not exceed 1% of sum of the member insurer’s premiums regarding business covered by the account

received during the three calendar years preceding the year in which the assessment was made,

divided by three.

For long-term care insurer insolvencies, the assessment methodology must allocate 50% of the

assessment to health member insurers and 50% of the assessment to life and annuity member

insurers and the total assessments may not exceed 0.5% of the insurer or HMO’s premiums in

covered business during the preceding calendar year. (Effective for insolvencies on or after June 7,

2019.)

Exclusions and Deductions:

§ 632.626 Fraternal Benefit Societies

Fraternals are exempt from premium tax.

State of Kansas, ex rel. Todd v. United States of America, 995 F.2d 1505 (10th Cir. 1993).

Florida has agreed to follow the Todd decision and will not collect premium tax, including the state

fire marshal regulatory assessment and surcharge on federally reinsured crop insurance premiums.

§ 624.402(9) Contracts to U.S. Nonresidents

Policies or contracts issued by an insurer domiciled outside the United States covering only persons

who, at the time of issuance, are not residents of the United States and are not nonresidents illegally

residing in the United States, are not subject to the premium tax. The insurer must currently be an

authorized insurer in its country of domicile as to the kind or kinds of insurance proposed to be

offered.

Retaliation—December 2023

→ Credits:

§§ 175.141; 185.12 Firefighters’ Pension Fund and Police Officers’ Retirement Fund

May take a credit against the premium tax for the amount paid to the firefighters’ pension fund and

police officers’ retirement fund.

§ 440.51 Worker’s Compensation Fund Administration

Compensation carriers and self-insurers may take a credit against the premium tax for the amount

paid for administrative expense of the fund.

§ 624.509 Credit for Income Tax

Insurers may take credit for these other taxes against premium tax liability for period during which

the payments were made or should have been made. Credit for income tax and emergency excise

tax and salary tax credit may not exceed 65% of tax due after deducting police officers’ and

firefighters’ excise tax credits and workers’ compensation administrative assessment credit.

§§ 220.183; 624.5105 Community Contribution Tax Credit

Insurers may take this credit against either the insurance premium tax, or wet marine profits tax. A

credit of 50% of any community contributions may be taken, with a maximum of $200,000 credited

per year.

An insurer that claims a credit against premium-tax liability earned by making a community

contribution under § 624.5105 need not pay any additional retaliatory tax levied under § 624.5091

as a result of claiming such a credit. § 624.5091 does not limit such a credit in any manner.

§§ 624.509; 624.5091; Rule 12B-8.001; Rule 12B-8.016 Employee Salary Credit and Retaliation

Insurers may take 15% of the amount paid in salaries to eligible employees located in Florida as

credit against premium tax. An affiliated group that created a service company within its affiliated

group on July 30, 2002, shall allocate the salary of each service company eligible employee to the

various entities within the affiliated group for which the service company employee performs

services. As an alternative, effective July 1, 2005, an affiliated group of corporations which

includes at least one insurance company writing premiums in Florida, may take a credit not

exceeding 15% of the salaries paid to eligible employees located in Florida who perform insurance

related services if the affiliated group made a timely election for this alternative on or before Aug.

1, 2005. In the computation of the retaliatory tax, 80% of the salary credit claimed is added back

into the retaliatory calculation.

The total salary credit and corporate income and emergency excise tax credit granted shall not

exceed 65% of the tax due under § 624.509(1) after deducting the police officers’ and firefighters’

excise tax credits and the workers’ compensation administrative assessment credit.

Retaliation—December 2023

Credits (cont.)

→ §§ 624.51055; 1002.395; Rule 12-29.002 Credit for Contributions to Eligible Nonprofit Scholarship-

Funding Organizations

There is allowed a credit of 100% of an eligible contribution made to an eligible nonprofit

scholarship-funding organization as provided in § 1002.395 against any tax due for a taxable year

under § 624.509(1) after deducting from such tax deductions for assessments made pursuant to

§ 440.51; credits for taxes paid under §§ 175.101 and 185.08; credits for income taxes paid under

Ch. 220; the credit allowed under § 624.509(5), as such credit is limited by § 624.509(6); and the

credits granted under §§ 624.51057 and 624.51058. An eligible contribution must be made to an

eligible nonprofit scholarship-funding organization on or before the date the taxpayer is required

to file a return pursuant to §§ 624.509 and 624.5092. An insurer claiming a credit against premium

tax liability under this section shall not be required to pay any additional retaliatory tax levied

pursuant to § 624.5091 as a result of claiming such credit. § 624.5091 does not limit such credit in

any manner. The provisions of § 1002.395 apply to the credit authorized by this section.

For insurance premium taxable years beginning on or after January 1, 2019, eligible contributions

must be made by the taxpayer before the date the taxpayer is required to file a return pursuant to

§§ 624.509 and 624.5092.

Unused amounts of scholarship funding tax credits may be carried forward for up to five years, if

the credit was earned in a taxable year beginning before January 1, 2018, or for up to ten years, if

the credit was earned in a taxable year beginning on or after January 1, 2018.

→ §§ 288.991 to 288.9916 New Markets Tax Credit

Taxpayers may earn credits by investing in qualified community development entities that make

qualified low-income community investments in qualified active low-income community

businesses to create and retain jobs. An insurance company may apply the tax credit against the

insurance premium tax, and it may not be required to pay any additional retaliatory tax as a result

of claiming the tax credit. A total credit is equal to 39% of the purchase price of the qualified

investment. May claim 7% of the purchase price in the tax year containing the third credit allowance

date. May claim 8% of the purchase price in the tax year containing the fourth through seventh

credit allowance date. The credit may not be taken in excess of the tax liability. Unused credits may

be carried forward for up to five years.

Repealed effective July 1, 2023. No new applications for credit are accepted after July 1, but

contracts and agreements executed before that date will continue.

Retaliation—December 2023

Credits (cont.)

→ § 220.191; Rule 12C-1.0191 Capital Investment Tax Credit

Taxpayers may take credit against the corporate income tax or insurance premium tax for capital

investment in a qualifying project. The project may be in one of the high-impact sectors or target

industries identified by the Department of Commerce. or in an enterprise zone and brownfield area.

The amount of credit varies by the type of qualifying project.

A taxpayer that claims the capital investment tax credit against the insurance premium tax may not

claim credit for the same qualifying project against the corporate income tax. An insurer that claims

this credit against its premium-tax liability need not pay any additional retaliatory tax levied under

§ 624.5091 as a result of claiming such a credit. § 624.5091 does not limit such a credit in any

manner.

§ 220.181 Enterprise Zone Jobs Credit

Insurers may take a credit against the corporate income tax for an increase if the total number of

full-time jobs in an enterprise zone on the date of the credit application is greater than the total

number of full-time jobs in that zone 12 months before the date of application. The credit is a

percentage of wages paid. Effective Dec. 31, 2015, a business may not begin claiming the enterprise

zone jobs credit; however, the credit for which a business has qualified for under this section before

Dec. 31, 2015, or any carryforward of unused credit is not affected.

§ 631.72 Life and Health Insurance Guaranty Association

Insurers licensed to transact in the lines of insurance defined in § 631.713 may take a credit against

either the corporate income tax or insurance premium tax for assessments paid to the Florida Life

and Health Insurance Guaranty Association. For each assessment that was levied before Jan. 1,

1997, 0.1% of the assessment may be taken as a credit each year until all offsets are claimed. For

assessments made in 1997 and later, insurers may take a credit of 5% for each of the 20 calendar

years after the year in which the assessment was paid.

§ 377.809 Energy Economic Zone

Effective July 1, 2012, enterprise zone program incentives will be available to eligible businesses

located in energy economic zones designated on or before July 1, 2010.

§§ 220.1876; 624.509; 624.51056; 1003.485; Rule 12-29.005 New Worlds Reading Initiative Credit

Corporate income and insurance premium tax credits are available to taxpayers contributing to the

New Worlds Reading Initiative which provides books to students reading below grade level.

Taxpayers can claim credit for tax years beginning on or after January 1, 2021. The carry forward

period for unused credits is 10 tax years.

Retaliation—December 2023

Credits (cont.)

→ §§ 402.62; 624.5092; 624.51057; Rule 12-29.004 Strong Families Credit Program

The Florida Strong Families Credit Program provides corporate income and insurance premium tax

credits for monetary donations to designated charitable organizations. Taxpayers can claim the

credit for tax years beginning on or after January 1, 2021. Taxpayers that want to claim tax credits

can apply to the Florida Department of Revenue beginning October 1, 2021. The carry forward

period for unused credits is 10 tax years.

Effective July 1, 2023, an additional $10 million in credit will be available, increasing the available

credit to $20 million for the 2023-24 state fiscal year and all future fiscal years. Starting July 1,

2023, taxpayers may apply for allocations of the additional credit amount available.

→ §§ 420.50872; 624.51058 Credit for contribution to Live Local Program

Taxpayers may make eligible contributions to the Florida Housing Finance Corporation pursuant

to the Live Local Program under § 420.50872 and receive a dollar-for-dollar credit against

corporate income tax or insurance premium tax. Taxpayers may claim credit for tax years beginning

on or after January 1, 2023. The carry forward for unused credits is 10 tax years.

Payment Due Dates:

§§ 624.509; 624.510

Return due Mar. 1. Tax on wet marine and transportation insurance also due Mar. 1.

§ 624.5092

Installments of tax due on April 15, June 15, and Oct. 15; installment amounts are based on

estimated receipts of premiums received during the first three calendar quarters respectively. The

taxpayer must, each quarter, pay in at least 90% of the amount finally shown to be due in the

quarter, or 27% of the preceding year’s tax.

Penalties:

§§ 624.5092; 1002.395

Failure to report and timely pay any installment of tax or final tax due is subject to a penalty of

10% of any underpayment plus 12% interest per year from the date due until paid. The interest rate

is updated Jan. 1 and July 1 of each year. For the purpose of determining if a penalty under

§ 624.5092 is to be imposed, an insurer may, after earning a scholarship funding credit under

§ 624.51055, reduce the following installment payment of 27% of the net tax due as reported on

the preceding year’s return by the amount of the scholarship funding credit; this applies to

contributions made on or after July 1, 2014.

Retaliation—December 2023

Penalties (cont.)

§ 632.628

A fraternal benefit society shall be subject to an administrative fine in an amount up to $100 for

each day for failure to file an annual statement, and its authority to do business in this state shall

cease while such default continues.

Extensions:

No specific provision for extension.

Retaliatory Law:

§ 624.5091; Rule 12B-8.016

When another state charges taxes, licenses and fees in the aggregate, and any fines, penalties,

deposit requirements, etc., to Florida insurers and agents that exceed the taxes, licenses, and fees,

in the aggregate, or fines, penalties, deposit requirements that Florida imposes on similar insurers

or agents, retaliation will occur. Any tax or license fee imposed by a city, county or other

jurisdiction shall be deemed imposed by the state. A “similar insurer,” is an insurer with identical

premiums, personnel, and property to that of the foreign insurer. This section does not apply to

personal income taxes, nor to sales or use taxes, nor to ad valorem taxes on real or personal

property, nor as to reimbursement premiums paid to the Florida Hurricane Catastrophe Fund, nor

as to emergency assessments paid to the Florida Hurricane Catastrophe Fund, nor to special purpose

assessments in connection with types of insurance other than property insurance.

Rule 12B-8.016

The state fire marshal regulatory assessment, the state fire marshal college surcharge and the

Florida Insurance Guaranty Association assessment that was imposed upon the insurer’s property

insurance policies shall be included in the retaliatory calculations. If the state of domicile imposes

a comparable assessment on a similar Florida insurer, the foreign or alien insurer must include that

portion of the state of domicile’s assessment that would relate to the similar insurer’s property

insurance premiums. The Florida Insurance Guaranty Association assessment continues to be

included in the retaliatory tax calculation even though assessments levied on or after July 1, 2015,

and recouped from policyholders are no longer taxable premiums.

Retaliation—December 2023

FEES

Retaliation of all taxes and fees, including agents’ licenses, made in aggregate on tax return.

Insurers’ Fees:

§§ 624.501 to 624.502; 626.89; 632.628; 636.057; 642.0301; 641.29

Certificate of authority of insurer:

Filing application for original certificate of authority, or modifications due to merger,

etc., including all documents required to be filed therewith, filing fee ............................ $1,500

Reinstatement fee ........................................................................................................................... 50

Health maintenance organization and provider service network:

Filing for a certificate of authority or amendment .................................................................... 1,000

Third party administrator:

Filing application for original certificate of authority for third-party administrator or original

certificate of approval for a service company, including all documents required to be filed

therewith, filing fee. ..................................................................................................................... 100

Prepaid limited health service organization:

Certificate of authority ................................................................................................................. 500

Legal expense insurance companies:

Certificate of authority ................................................................................................................. 250

Charter documents of insurer:

Filing articles of incorporation or other charter documents, other than at time of

application for original certificate of authority, filing fee ....................................................... 10

Filing amendment to articles of incorporation or charter, other than at time of

application for original certificate of authority, filing fee ......................................................... 5

Filing bylaws, when required, or amendments thereof, filing fee ................................................... 5

Annual license tax:

Of insurer, each domestic insurer, foreign insurer, and alien insurer ....................................... 1,000

(except that as to fraternal benefit societies insuring less than 200 members in this state

and the members of which, as a prerequisite to membership, possess a physical

handicap or disability) ............................................................................................................. 25

Legal expense insurance companies ............................................................................................ 300

Filing application for permit to form insurer:

Filing fee ........................................................................................................................................ 25

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 624.501 to 624.502; 626.89; 632.628; 636.057; 642.0301; 641.29 (cont.)

Annual statement:

Of insurer, filing (except when filed as part of application for original

certificate of authority), filing fee ....................................................................................... $250

Of administrator ........................................................................................................................... 250

Each quarterly statement .............................................................................................................. 250

Fraternal benefit society (annual) ................................................................................................ 250

Health Maintenance Organization and Provider Service Network (annual) ................................ 150

Prepaid limited health service organization (annual) ................................................................... 200

Legal expense insurance companies (annual) .............................................................................. 100

Legal expense insurance companies (quarterly) ............................................................................ 25

Rating organization:

Each domestic or foreign organization, annual license .................................................................. 25

Miscellaneous services:

For copies of documents or records on file with the department per page ................................. 0.15

For each certificate of the department under its seal, authenticating any document

or other instrument (other than a license or certificate of authority) ......................................... 5

For processing requests for approval of continuing education courses,

processing fee ....................................................................................................................... 100

Insurer’s registration fee for agent exchanging business more than 4 times in

calendar year, registration fee per agent per year .................................................................... 30

Service of process .......................................................................................................................... 15

For preparing lists of agents, solicitors, adjusters, and other insurance representatives, and or other

miscellaneous services, a reasonable charge fixed by the department.

Retaliation—December 2023

→ Producer Licensing Fees:

§§ 624.501; 626.322; 626.9916; 648.355

[Fees in brackets were in effect prior to 5/25/2023.]

Producer licensing:

All insurance representatives, (producers) application for license, each filing,

filing fee ................................................................................................................................ $50

Limited agent appointment ............................................................................................................ 60

Property, marine, casualty, and surety insurance agents, each insurer or unaffiliated agent ......... 60

Nonresident P/C agent’s original appointment and biennial renewal or

continuation appointment fee, each insurer or unaffiliated agent............................................ 60

Life insurance agent’s appointment fee for original appointment and biennial

renewal or continuation, each insurer or unaffiliated agent .................................................... 60

Nonresident life agent’s appointment fee for original appointment and

biennial renewal or continuation, each insurer or unaffiliated agent ...................................... 60

Health insurance agent’s original appointment and biennial renewal or

continuation, each insurer or unaffiliated agent ...................................................................... 60

Nonresident health agent’s original appointment and biennial renewal or

continuation, appointment fee, each insurer or unaffiliated agent........................................... 60

Fraternal benefit society agent’s original appointment and biennial renewal or

continuation, each insurer ........................................................................................................ 60

Certain military installations, original appointment and biennial renewal or

continuation thereof, each insurer ........................................................................................... 20

Customer representative’s original appointment and biennial renewal ......................................... 60

Service representative’s original appointment and biennial renewal or continuation ................... 60

Sales representatives, miscellaneous lines ..................................................................................... 60

Late filing fee for insurance representatives and adjusters per appointment ................................. 20

Viatical settlement broker:

Must be a licensed life agent .......................................................................................................... 60

Managing general agent:

Original appointment and biennial renewal or continuation .......................................................... 60

Reinsurance intermediary:

[Application filing and license fee ................................................................................................ 50]

Original appointment and biennial continuation ............................................................................ 60

Surplus lines agent:

Appointment and biennial renewal or continuation appointment fee .......................................... 150

Adjuster:

Original appointment and biennial renewal or continuation, appointment fee .............................. 60

Nonresident adjuster’s original appointment and biennial renewal

or continuation thereof, appointment fee ............................................................................... 60

Emergency adjuster’s license, appointment fee ............................................................................. 10

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 624.501; 626.322; 626.9916; 648.355 (cont.)

[Fees in brackets were in effect prior to 5/25/2023.]

Bail bond agent:

Temporary license and appointment fee for each month of the period for which

the license and appointment is issued .................................................................................... $5

Limited surety agent, professional bail bondsman:

Original appointment and biennial renewal or continuation .......................................................... 80

Title insurance agents or agency:

Original appointment or biennial renewal or continuation ........................................................... 60

Filing for title insurance agent’s license:

Application for filing, each filing fee ............................................................................... 10

Additional appointment continuation fee ......................................................................................... 5

Title insurer and title insurance agent administrative surcharge:

On or before Jan. 30 of each calendar year, each title insurer shall

pay to the department for each licensed title insurance agent licensed by

the title insurer and for each retail office of the insurer on Jan. 1 of

that calendar year an administrative surcharge, and each agency shall pay ................... 200

Fingerprinting processing fee:

Fingerprinting processing fee ...................................................................................................... cost

Examination:

Examination ................................................................................................................................. cost

Temporary license and appointment:

As agent or adjuster, where expressly provided for, rate of fee for each month of the period

for which the license an appointment is issued ................................................................... 5

Issuance, reissuance, reinstatement, modification:

Resulting in a modified license being issued, or duplicate copy of any

insurance representative license, or an appointment being reinstated ................................ 5

Additional license continuation fees:

Additional license continuation fees ................................................................................................ 5

Agents’ fees paid by insurer or the licensee. Retaliation occurs as each fee is paid.

Retaliation—December 2023

DEPOSITS

§ 624.411

Domestic insurers:

Casualty insurance $250,000

Other lines $100,000 per kind of insurance but not more than $300,000.

Foreign insurers: (Office may require)

Casualty $150,000

Other lines $100,000 per kind of insurance but not more than $200,000.

Office may require additional deposit not to exceed $2 million.

§ 628.161

Domestic mutual insurers: Life insurers maintain deposit of $200,000. Other mutual insurers

maintain deposit equal to one-half minimum initial surplus.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

CONTACT PERSON

Department of Revenue, Premium Tax

William Roberts: (850) 717-7658; william.roberts@floridarevenue.com

Office of Insurance Regulation

Christina Huff, NAIC Coordinator: (850) 413-5906; christina.huff@floir.com

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

GEORGIA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Ga. Code Ann. § 33-8-4; Opinion 98-17

Gross direct premiums received, without regard to business ceded to or assumed from other

companies, allowing a deduction for premiums returned and dividends paid. Annuity

considerations are not included in gross direct premiums. The commissioner has the authority to

tax HMOs on the premium payments they receive from Medicaid.

Tax Rate:

§ 33-8-4

2.25%

§ 33-5-29

4% surplus lines (brokers).

§ 33-5-33

4% surplus lines (procurement).

[Note: Please see the Surplus Lines chart for further information.]

§ 33-40-5

4% risk retention groups.

§ 33-41-22 Captive Insurers

Direct written premiums:

0.4% on first $20 million of net direct premiums collected

0.3% on each dollar thereafter

Reinsurance:

0.225% on first $20 million of assumed reinsurance premiums

0.150% on next $20 million

0.050% on next $20 million

0.025% on each dollar thereafter

No reinsurance tax applies to premiums for risks or portions of risks that are subject to taxation

on a direct basis pursuant to Title 33.

(cont.)

Retaliation—December 2023

Tax Rate (cont.)

§ 33-41-22 Captive Insurers (cont.)

The maximum amount of tax paid by a captive insurance company in any year is $100,000.

Two or more captive insurance companies under common ownership and control, other than

sponsored captive insurance companies, are taxed as a single captive insurance company.

Other Taxes and Assessments:

→ § 47-7-61 Firefighters’ Pension Fund

Additional premium tax of 1% for firefighters’ pension fund, paid directly to Georgia

Firefighters’ Pension Fund by Mar. 31 of each year. Property covered under a policy served by

public fire suppression facilities that are rated less favorably than a class nine rating shall be

excluded in determining the tax. The tax is assessed on 100% of gross premium for fire insurance

coverage; on 50% of allied lines coverage, 65% of homeowner’s multiple peril coverage, 100%

of commercial multiple peril, 30% of inland marine, 12% of private passenger auto physical

damage, and 12% of commercial auto physical damages coverage.

The premium tax reporting form is no longer sent to insurance companies. It is posted on the

Georgia Firefighters’ Pension Fund website with a memorandum of instructions (www.gfpf.org).

→ §§ 34-9-358; 34-9-368 Subsequent Injury Fund

Insurers writing compensation insurance may be assessed for expenses of fund. Current

assessment is 0.00% in CY 2023 of the workers’ compensation losses paid by the insurer in the

preceding year. Assessments are authorized until December 31, 2025, as needed prior to the

termination of the fund on that date. Assessments are suspended by the Board of Trustees

effective January 2019.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ § 33-1-17; Ga. Comp. R. & Regs. 120-2-72-.05; Bulletin 97-EX-1 Special Insurance Fraud Fund

Insurers doing business in the state may be assessed for special fraud fund. Legislature will set an

appropriation and each insurer will be assessed a share based on premium volume:

Written Premium

Share of Appropriation

Less than $1 million including zero or less

than zero

Regulation contains computation

Greater than or equal to $1 million but less

than $40 million

Regulation contains computation

Greater than or equal to $40 million but less

than $100 million

0.0035 x appropriation

Greater than or equal to $100 million but less

than $500 million

0.0045 x appropriation

Greater than or equal to $500 million but less

than $1 billion

0.0055 x appropriation

Greater than or equal to $1 billion

0.0065 x appropriation

Associated Captive insurer

$100 fixed amount

The 2023 appropriation is $7,129,010. Payment is due Sept. 1 of year of assessment. In the event

of a supplemental appropriation, payment will be due 30 days after the assessment. Any

assessment not remitted by the due date is subject to a penalty of 10% of the amount owed plus

interest of 1% per month or portion of a month from the due date until paid.

→ § 34-9-63 Workers’ Compensation Board Assessment

Total expenses for workers’ compensation board are prorated among insurers writing

compensation insurance and self-insured employers. Assessment for July 2022 to June 2023 was

0.745% of direct earned premiums. Assessment for July 2023 to June 2024 is 0.665% of direct

earned premiums. Payment is due 30 days after receiving invoice.

§ 33-36-7 Georgia Insurers Insolvency Pool (Property and Casualty Guaranty Association)

Assessment may not exceed 2% of direct written premiums for kinds of insurance in account with

deficiency.

§ 33-38-15 Life and Health Guaranty Association

May make assessment for administrative expenses and no more than 2% direct written premiums

for kinds of insurance in account or subaccount with deficiency.

§ 33-8-8.1 County/Municipal Tax on Life Insurers

Counties and municipalities may impose additional 1% premium tax on life insurance insuring

persons residing within the municipal corporations’ limits, except for counties may not impose

premium tax on life insurers with 75% of their assets invested in Georgia.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 33-8-8.2 County/Municipal Tax on Other than Life Insurers

Counties and municipalities may impose additional premium tax up to 2.5% of premiums for all

companies other than life.

§ 33-8-8 Preemption

State preempts field of taxation except taxes on real property, but municipalities may charge the

following license fees:

Population of Municipal Corporation

Amount

Under 1,000

$15

1,000–1,999

2,000–4,999

5,000–9,999

10,000–24,999

25,000–49,999

100

50,000 and over

150

Contact Georgia Department of Insurance to verify fees.

Exclusions and Deductions:

§ 33-8-5; Ga. Comp. R. & Regs. 120-2-6-.02 Investments Deduction

May reduce tax rate to 1.25% if at least 25% of total assets of company exclusive of direct

obligations of U.S. government are invested in Georgia property, as specified in the statute.

May reduce tax rate to 0.05% if 75% of total assets are invested in Georgia property.

§ 33-15-83 Fraternals

Fraternal benefit societies are exempt from the payment of premium taxes.

Credits:

§ 33-1-25 Georgia Agribusiness and Rural Jobs Act (GARJA)

Eligible business’ in rural areas designated by the commissioner of community affairs shall be

allowed a GARJA credit for taxes imposed under § 33-1-25 annually for four years beginning

with year three through six after the investment at a rate of 15% of the credit allowance per year.

To qualify for a credit, the business must have less than 250 employees and have its principal

place of business in one or more rural areas in this state. They must also produce or provide

goods or services produced in Georgia normally used by the farmers, ranchers, producers, and

harvesters in these rural areas.

Retaliation—December 2023

Credits (cont.)

§ 33-8-4.1 Job Tax Credit

Business enterprises in counties designated by the commissioner of community affairs as tiers 1-4

counties shall be allowed a job tax credit for taxes imposed under § 33-8-4 annually for each new

full-time employee job for five years beginning with year two through six after the creation of the

job. To qualify for a credit, the employer must make health insurance coverage available if such

employer provides health insurance coverage for other employees. Credit will not be allowed

during a year if the net employment increase falls below the number required in such tier.

§§ 33-8-6; 33-8-7; Ga. Ins. R. & Regs., Rules 120-2-6-.03; Directive 13-EX-3 Retaliatory Taxes

Domestic property and casualty insurance companies may deduct any retaliatory tax actually paid

to another state if company issues policies covering fire, lightning, extended coverage and

windstorm coverage on property in Georgia. Each insurer claiming abatement of gross premium

tax shall file a calculation for abatement of gross premium tax, and each domestic insurer

claiming retaliatory tax credit shall file a statement in support of claims for retaliatory credit on a

form prescribed by the commissioner. Unless otherwise indicated, each filing required is to be

made on forms or electronic format obtained from the commissioner.

§§ 33-8-8; 33-21-16 Municipality License Fees

Life insurance companies and HMOs may take a credit for company license fees paid to

municipalities.

§§ 33-8-8.1; 33-21-16 County/Municipal Tax

Life insurance companies and HMOs may take a credit for premium taxes paid to municipalities

and counties.

§ 33-1-18; Bulletin 06-EX-1 Georgia Housing Tax Credit

Insurers may take a tax credit against the premium tax with respect to low-income housing that

qualified for a federal tax credit. All required documentation must be received by the Premium

Tax Division prior to the scheduled audit of the applicable premium tax return.

§ 33-38-22 Life and Health Guaranty Association

Assessments may be offset against the premium tax liability at a rate of 20% per year for five

years beginning the tax year following the year assessment paid.

→ § 48-7-29.16 Qualified Education Expense (QEE) Tax Credit Scholarship Program

Insurance companies may take a tax credit against the premium tax, up to 75% of the insurers tax

liability and not to exceed $1 million. Applications for the program must be submitted through

GA DOR. Approval letters and SSO acknowledgement must be submitted to the Premium Tax

Division with your filed return (See Bulletin 22-E-6).

Retaliation—December 2023

Payment Due Dates:

§ 33-8-6

Annual return due Mar. 1. If premium tax liability for prior year was $500 or more, 25% of prior

year’s liability or 80% times the 2.25% of tax year’s actual premiums per quarter is due on Mar.

20, June 20, Sept. 20 and Dec. 20. Penalty is assessed if payment is less than 80% of amount

finally due per quarter or less than 100% of prior year’s liability (25% paid in each quarter).

Penalties:

§ 33-8-6

Penalty of 10% of amount owed, together with interest at rate of 1% per month or portion of a

month.

§ 47-7-61

Penalty for failure to pay firefighter’s fund tax is 25% of amount owed or $1,000, whichever is

greater, together with interest at current rate.

Extensions:

§ 33-2-31

Provides for the commissioner to grant an extension of no more than 30 days for the filing of

premium tax forms, if requested in writing prior to the due date.

Retaliatory Law:

§ 33-8-2

Fees or taxes imposed on Georgia agents and brokers subject to retaliation.

§ 33-3-26

When another state charges taxes, licenses and other fees in the aggregate and any fines,

penalties, deposit requirements or other obligations upon Georgia insurers or their representatives

which are in excess of those Georgia charges similar insurers or their representatives, retaliation

will occur. Any tax imposed by a political subdivision will be deemed imposed by the state.

Retaliation—December 2023

FEES

All fees and taxes are aggregated on the premium tax return.

Insurers’ Fees:

§ 33-8-1; Directive 92-EX-1

Certificate of authority:

Life, accident, and sickness insurance company:

Original certificate ............................................................................................................... $600

Renewal of certificate, including annual statement filing and three quarterly filings ........... 700

Property and casualty insurance company:

Original certificate ................................................................................................................. 600

Renewal of certificate, including annual statement filing and three quarterly filings ........... 700

Title insurance company:

Original certificate ................................................................................................................. 600

Renewal of certificate, including annual statement filing and three quarterly filings ........... 700

Fraternal benefit society:

Original certificate ................................................................................................................. 600

Renewal of certificate, including annual statement filing and three quarterly filings ........... 700

Health maintenance organization:

Original certificate ................................................................................................................. 600

Renewal of certificate, including annual statement filing and three quarterly filings ........... 700

Captive insurance company:

Original license or certificate ................................................................................................ 600

Renewal license or certificate ................................................................................................ 500

Farmers’ mutual fire insurance company:

Original license or certificate ................................................................................................ 500

Renewal license or certificate .................................................................................................. 25

Premium finance company (full power) ...................................................................................... 500

Premium finance company (limited power)................................................................................. 300

Prepaid legal services plan ........................................................................................................... 500

Nonprofit organizations (medical service, hospital service, or health care corporation):

Original certificate ................................................................................................................. 600

Ren

ewal of certificate, including annual statement filing and three quarterly filings ........... 700

Third-party administrators:

Original license or certificate ................................................................................................ 500

Renewal license or certificate ................................................................................................ 400

Private review agents:

Original license or certificate ............................................................................................. 1,000

Renewal license or certificate ................................................................................................ 500

Continuing care provider ............................................................................................................... 75

Multiple employer self-insurance plan ........................................................................................ 400

Duplicate certificate of authority, license, or permit ..................................................................... 25

License, permit, or certificate of authority amendment ................................................................. 25

Retaliation—December 2023

Insurers’ Fees (cont.)

§ 33-8-1; Directive 92-EX-1 (cont.)

Rating or advisory organization:

License ....................................................................................................................................... $100

Vending machine:

License ........................................................................................................................................... 25

Filings:

Bylaws amendments ...................................................................................................................... 25

Certification of annual statement ................................................................................................... 10

Certification of examination report ................................................................................................ 10

Certification of other documents ..................................................................................................... 5

Charter amendments ...................................................................................................................... 25

Form A ...................................................................................................................................... 5,000

Form A exemption .................................................................................................................... 1,000

Form B ......................................................................................................................................... 500

Form B exemption ....................................................................................................................... 100

Individual risk rate or form ............................................................................................................ 10

Late fee for filings .......................................................................................................................... 15

Filing of other documents .............................................................................................................. 50

Amendment of filings .................................................................................................................... 25

Form and policy filings:

Insurance policy form .................................................................................................................... 25

Insurance rate filing ....................................................................................................................... 75

Risk retention groups:

Registration of risk retention groups ............................................................................................ 100

Registration of purchasing groups ............................................................................................... 100

Limited liability Companies:

Registration .................................................................................................................................... 50

Limited partnerships and business trusts:

Registration .................................................................................................................................... 50

Miscellaneous services:

Listing of licensed agents, subagents, counselors, or adjusters ................................................ 1,000

Listing of insurer’s certificates of authority filed for agents............................................................ 5

Listing of agent’s certificates of authority filed for subagents ........................................................ 5

List of licensees or permit or certificate holders other than agents, subagents, counselors,

or adjusters .............................................................................................................................. 40

Service of process .......................................................................................................................... 15

Agents’ appointment:

Insurer certificate of authority for agent ........................................................................................ 10

Retaliation—December 2023

Insurers’ Fees (cont.)

§ 33-8-1; Directive 92-EX-1 (cont.)

Bond or security deposit fees: (Fees for deposits handled through a custodian bank.)

Fees vary. Information may be obtained by calling Insurance Financial Oversight at

(404) 657-7287.

Producer Licensing Fees:

§ 33-8-1

License fees:

Application fee for agent’s, subagent’s, adjuster’s, or counselor’s license ................................. $15

Agent, subagent, counselor, or adjuster or principal office of an insurance agency

(new license).......................................................................................................................... 100

Agent, subagent, counselor, or adjuster or principal office of an insurance agency

(biennial license renewal) ...................................................................................................... 100

Branch office of an insurance agency other than principal office (new license) ........................... 20

Branch office of an insurance agency other than principal office (biennial license renewal) ....... 20

Agent certificate of authority for subagent ...................................................................................... 5

Managing general agent:

Original license or certificate ................................................................................................ 600

Renewal license or certificate ................................................................................................ 500

Reinsurance intermediary .............................................................................................................. 50

Surplus lines broker ..................................................................................................................... 600

Utilization review agent ............................................................................................................... 200

Agent certificate of authority ......................................................................................................... 10

Examination fees:

Examination fee for agent’s, subagent’s, counselor’s, or adjuster’s license .................................. 25

Status letter:

For agent, subagent, counselor, or adjuster .................................................................................... 10

Fees paid by licensee.

Retaliation—December 2023

DEPOSITS

§§ 33-3-8; 34-9-129

To transact one class of insurance

$100,000

Each additional class of insurance

25,000, but a total deposit of no

more than $200,000

Workers’ compensation authority

50,000

Foreign insurer may present certificate that a like deposit has been made in another state.

§ 33-3-9 Foreign and alien insurers

To transact one class of insurance

$100,000

Each additional class of insurance

25,000, but a total deposit of no

more than $200,000

→ CONTACT PERSON

Premium Tax Issues

Mandy Snipes: (404) 656-7553; msnipes@oci.ga.gov

Fees

Scott Sanders: (404) 657-7742; s[email protected]

Agents Licensing Division

→ Melanie Frechette: (404) 657-1168; mfrechette@oci.ga.gov

Georgia Firefighters’ Pension Fund

Morgan Wurst: (770) 388-5757; morgan@gfpf.org

Tracy Ransom: (770) 388-5757; pre[email protected]

Workers’ Compensation

Alex Volodarsky: (404) 656-2314

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

HAWAII

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Haw. Rev. Stat. §§ 431:7-201 to 431:7-202

Gross premiums written less return premiums, dividends paid to policyholders (life only) and

reinsurance assumed. Annuity considerations and premiums received on ocean marine insurance

are not included. With respect to title insurance, the tax is based on the amount of risk premium

actually received by the insurer for the provision of title insurance.

§§ 431:19-116; 431K-3

With respect to captive insurers and risk retention groups, the tax is based upon gross premiums

written less return premiums, reinsurance accepted, and direct writings for which premium taxes

were paid in a jurisdiction other than Hawaii.

Tax Rate:

§ 431:7-202

4.265% for other than life insurers

2.75% for life insurers

§§ 431:19-116; 431K-3

All captive insurers and risk retention groups are taxed at the following rates:

Gross Premiums

Tax Rate

$0 to $25 million

0.25%

greater than $25 million to $50 million

0.15%

greater than $50 million to $250 million

0.05%

greater than $250 million

0.00%

Premiums written on risks and property situated outside of the state upon which tax is paid, is not

subject to tax.

Annual maximum aggregate tax on gross premiums to be paid by a captive insurance company

shall not exceed $200,000.

Retaliation—December 2023

Other Taxes and Assessments:

§ 431:7-202 Ocean Marine

0.8775% tax on gross underwriting profit for ocean marine insurance

§§ 386-151 to 386-153 Special Compensation (Second Injury) Fund

Assess workers’ compensation insurers amount sufficient to meet expenses of fund in addition to

premium tax.

§ 237-29.7 General Excise

Generally, insurance companies are exempt from the general excise tax. However, this exemption

does not apply to gross income or gross proceeds received as rents from investments in real property

in Hawaii; provided that gross income or gross proceeds from investments in real property received

by insurance companies after Dec. 31, 1991, under written contracts entered into before Jan. 1,

1992, that do not provide for the passing on of taxes or tax increases shall not be taxed until the

contracts are renegotiated, renewed or extended.

§ 435C-5 Medical Malpractice Joint Underwriting Association

Insurers that are members of the plan may be assessed for losses of the plan based on net direct

premiums for general casualty insurance.

§§ 431P-5; 431P-16 Hurricane Relief Fund

Assessments are imposed on the premiums of all licensed property and casualty insurers and

surplus lines insurers. Prior to a covered event, the assessment is 3.75% of direct written premiums

for licensed property and casualty insurers and 3% of comparable premiums charged by surplus

lines insurers, in each case excluding premiums for motor vehicle insurance. Following a covered

event, the rate of assessment may be increased to 5% and may also be imposed on premiums for

motor vehicle insurance. Assessments are imposed and collected on a quarterly basis. Following a

hurricane, the Fund may impose a surcharge of up to 7.5% on property and casualty policy

premiums. Because the private insurance market now provides hurricane insurance in Hawaii, the

Fund has suspended its insurance operations as of Dec. 1, 2001. The Fund’s assessments on

property and casualty premiums of licensed property and casualty insurers and surplus lines brokers

have been suspended as of Sept. 30, 2001.

§ 431:2-215 Compliance Resolution Fund

The insurers or entities shall be provided at least sixty days notice of when their respective

assessments are due. The total amount or amounts to be assessed of insurer or entities shall be

calculated based on the formula prescribed in § 431:2-215(d). The assessments by line or type shall

bear a reasonable relationship to the costs of regulating the line or type of insurance, including any

administrative costs of the division. The total assessments for all lines or type of insurance in any

one fiscal year shall not exceed $5 million.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 431:2-216 Mutual Benefit Society and Health Maintenance Organization Assessment

Each mutual benefit society, health maintenance organization, and any other entity offering or

providing health benefits or services under the regulation of the commissioner, except an insurer

licensed to offer accident and health or sickness insurance under Art. 10A, shall deposit with the

commissioner by July 1 of each year an assessment on a pro rata basis to be determined and imposed

by the commissioner. The aggregate annual assessment shall not exceed $1 million.

§§ 431:16-108; 431:16-115 Property and Casualty Guaranty Association

Association may assess insurers writing property/casualty insurance no more than 2% net direct

premiums to cover deficiency. Recoup by surcharge on premiums.

§ 431:16-209 Life and Health Guaranty Association

Association may assess insurers no more than 2% of the average premiums received in this state

on the policies and contracts covered by the account during the three calendar years preceding the

year in which the insurer became impaired or insolvent. The association may also assess an amount

not to exceed $300 per year for administrative expenses.

§ 431:7-204 Preemption

Taxes and fees here imposed are in lieu of other taxes by state and other political subdivisions

except taxes on real property, personal property and rental proceeds.

Exclusions and Deductions:

§ 431:16-115 Property and Casualty Guaranty Association

Recoupment of property and casualty guaranty association assessments are not considered

premiums for purpose of tax calculations.

Crop Insurance

Hawaii does not collect premium tax on federally reinsured crop insurance.

§ 432:2-503 Fraternals

Fraternals are exempt from premium taxes.

Retaliation—December 2023

Credits:

§ 431:7-207 Tax Credit to Facilitate Regulatory Oversight

Insurer may take a tax credit of 1% of premiums against which tax is imposed if the insurer

maintains in Hawaii books and records sufficient to conduct an examination, employs in Hawaii

personnel knowledgeable about insurer’s financial operations and who are authorized to represent

the insurer in all matters pertaining to examinations, and maintains in Hawaii a customer service

center with employees authorized to promptly adjust, settle and pay claims and to promptly answer

all questions regarding the insurance policies.

§§ 235-110.8 and 431:7-208 Low-Income Housing Tax Credit

Low-income housing tax credit may be used as a credit against the insurance premium tax.

§§ 235-110.9 and 431:7-209 High Technology Business Investment Tax Credit

Insurers may receive a tax credit for investments in qualified high technology businesses

(“QHTB”). [See § 235-110.9(g) for the definition of a QHTB.] The high technology business

investment tax credit may be used as a credit against the insurance premium tax, provided that the

required certification requirements have been met for investments made after June 30, 2004. This

section shall not apply to taxable years beginning after Dec. 31, 2010.

If the tax credit under this section exceeds the taxpayer’s income tax liability for any of the five

years that the credit is taken, the excess of the tax credit over liability may be used as a credit

against the taxpayer's income tax liability in subsequent years until exhausted.

§ 431:16-213 Life and Health Guaranty Association

Assessments, other than those for administrative expenses, may be recouped at a rate of 20% per

year for each of the five years following the year in which the assessment was paid.

§ 431:7-206 Retaliatory Tax Credit

If any Hawaii domiciled insurer shall be required to pay higher taxes in other states than those taxes

which are imposed against that state’s domestic insurers, Hawaii companies may claim a credit of

that amount against their premium taxes.

§ 201H-86 Low-Income Housing Tax Credit Loan

The Hawaii Housing Finance and Development Corporation may issue a no-interest loan to owners

of low-income buildings who are eligible for the low-income housing tax credit under § 235-110.8

The loan is issued in lieu of the tax credit and any taxpayers who accept the low-income housing

tax credit loan are ineligible to claim the low-income housing tax credit on the building. Takes

effect July 1, 2011, and applies to any low-income housing buildings placed in service after Dec.

31, 2011.

Retaliation—December 2023

Filing and Payment Due Dates:

§ 431:7-201 Annual and Monthly Tax Statements

Each insurer shall file electronically the annual tax statement on or before Mar. 1.

Each insurer shall file electronically monthly tax statements on or before the 20

day of the calendar

month following the month in which the taxes accrue.

§ 431:7-202

Taxes shall be paid monthly and annually by electronic payment on or before the filing due dates

noted above.

Amounts paid are credited against the annual tax due Mar. 1.

Penalties:

§ 431:7-201

Any insurer not filing electronically the monthly or annual tax statement shall be liable for a fine

of not less than $100 and not more than $500 for each day of delinquency.

§ 431:7-202

Fine of $500 or 10% of tax due, whichever is greater, plus interest at a rate of 12% per annum. May

suspend certificate of authority until paid.

Extensions:

§ 431:7-101

The commissioner shall notify the holder of a certificate of authority issued under article 3 by

written notice at least thirty days prior to the extension date of the certificate of authority, or other

certificate. The annual fee for all services shall be due and payable by electronic payment via the

National Association of Insurance Commissioners' Online Premium Tax for Insurance or an

equivalent service approved by the commissioner. If the fee is not paid before or on the extension

date, the fee shall be increased by a penalty in the amount of fifty per cent of the fee. The

commissioner shall provide notice in writing of the delinquency of extension and the imposition of

the authorized penalty. If the fee and the penalty are not paid within thirty days immediately

following the date of notice of delinquency, the commissioner may revoke, suspend, or inactivate

the certificate of authority, or other certificate, and may not reissue, remove the suspension of, or

reactivate the certificate of authority, or other certificate until the fee and penalty have been paid.

The commissioner shall notify licensees and registrants by written notice at least 30 days prior to

the extension date of the license or registration. If the fee is not paid before or on the renewal date

for a license or registration, the fee shall be increased by a penalty in the amount of double the

unpaid renewal fee.

Retaliation—December 2023

Extensions (cont.)

§ 431:7-101 (cont.)

Failure to pay the fee before or on the renewal or extension date for a license, registration, or other

certificate shall cause the automatic inactivation of the license, registration, or other certificate.

All fees and penalties are nonrefundable and shall be deposited to the credit of the compliance

resolution fund.

Retaliatory Law:

Hawaii does not impose retaliatory taxes.

FEES

Insurers’ Fees:

§§ 432:1-108; 431:7-101; 432G-12; 431K-7.1; 431K-3.5; Haw. Admin. R. §§ 16-17-6; 16-23-68

Certificate of authority or registration application (fees due at time of application):

All insurers, including Mutual Benefit Society (MBS), Dental, HMO,

and Fraternal Benefit Societies (FBS) .......................................................................... $900

Risk Purchasing Group and Foreign Risk Retention Group ........................................................ 300

Motor vehicle self-insurance ........................................................................................................ 300

Certificate of authority issuance (fees due at time of application):

All insurers, including MBS, HMO, Dental, and FBS ................................................................ 600

Domestic insurers and affiliated corporations:

Application for a solicitation permit/certificate of registration ................................................. 1,500

Issuance of solicitation permit/certificate of registration ............................................................. 150

Annual service fees:

Including certificate of authority/registration extension/renewal (due on or before Aug. 16)

All others ............................................................................................................................. 600

Risk Purchasing Group and Foreign Risk Retention Group ................................................ 150

Hawaii Joint Underwriting Plan fee:

Vehicle writers only (due on or before Aug. 16) ...................................................................... 1,000

Captive insurers’ application and licensing fees:

Application ................................................................................................................................ 1,000

Class 1 and 2 licensing ................................................................................................................. 300

Class 3 licensing .......................................................................................................................... 500

Class 4 and 5 licensing .............................................................................................................. 1,000

Retaliation—December 2023

Producer Licensing Fees:

§§ 431:7-101; 431:31-107

Resident producer license:

License ......................................................................................................................................... $50

Temporary license .......................................................................................................................... 50

Nonresident producer:

License ........................................................................................................................................... 75

Independent adjuster:

License ........................................................................................................................................... 75

Public adjuster:

License ........................................................................................................................................... 75

Claims adjuster’s limited license:

Limited license ............................................................................................................................... 75

Administrator:

License ........................................................................................................................................ 150

Independent bill reviewer:

License ........................................................................................................................................... 80

Life settlement provider:

License – issuance before July 1, 2014 ........................................................................................ 150

License – issuance on or after July 1, 2014 ................................................................................... 75

Life settlement broker:

License – issuance before July 1, 2014 ........................................................................................ 150

License – issuance on or after July 1, 2014 ................................................................................... 75

Limited producer’s license:

Limited license ............................................................................................................................... 60

Managing general agent:

License ........................................................................................................................................... 75

Reinsurance intermediaries:

License ........................................................................................................................................... 75

Surplus lines:

Broker license issuance ................................................................................................................ 150

Pharmacy benefit manager’s:

License ......................................................................................................................................... 140

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 431:7-101; 431:31-107 (cont.)

Service contract provider’s:

License ......................................................................................................................................... $75

Approved course provider certificate:

License ......................................................................................................................................... 100

Approved continuing education course certificate:

License ........................................................................................................................................... 30

Vehicle protection product warrantor’s:

License ........................................................................................................................................... 75

Limited line motor vehicle rental company:

Producer license ........................................................................................................................ 1,000

Limited lines portable electronics producer:

License ...................................................................................................................................... 5,000

Limited lines self-service storage producer:

License ........................................................................................................................................... 60

Additional services:

*All services (including extension of the license) for a regularly licensed authorized insurer,

per year .................................................................................................................................. 600

*All services (including extension of the license) for a regularly licensed resident producer,

per year .................................................................................................................................... 50

*All services (including extension of the license) for a regularly licensed nonresident producer,

per year .................................................................................................................................... 75

*All services (including extension of the license) for a regularly licensed independent adjuster,

per year .................................................................................................................................... 45

*All services (including extension of the license) for a regularly licensed public adjuster,

per year .................................................................................................................................... 45

*All services (including extension of the license) for a claim’s adjuster limited license,

per year .................................................................................................................................... 45

*All services (including extension of the license) for an administrator’s license,

per year .................................................................................................................................. 150

*All services (including extension of the license) for a life settlement provider,

per year ............................................................................................................................... 1,200

*All services (including extension of the license) for a life settlement broker,

per year .................................................................................................................................. 150

*All services (including extension of the license) for a producer’s limited license,

per year .................................................................................................................................... 45

*All services (including extension of the license) for a managing general agent,

per year .................................................................................................................................... 75

Retaliation—December 2023

Producer Licensing Fees (cont.)

§§ 431:7-101; 431:31-107 (cont.)

Additional services (cont.)

*All services (including extension of the license) for a reinsurance intermediary,

per year .................................................................................................................................. $75

*All services (including extension of the license) for a licensed surplus lines broker, per year ... 45

*All services (including extension of the license) for a regularly licensed

independent bill reviewer, per year ......................................................................................... 60

*All services (including extension of the license) for a regularly licensed

limited line motor vehicle rental company producer, per year .............................................. 600

*All services (including extension of the license) for a regularly licensed

limited lines portable electronics producer, per year .......................................................... 2,500

*All services (including extension of the license) for a regularly licensed pharmacy benefit

manager, per year ................................................................................................................. 140

*All services (including extension of the license) for a regularly licensed service contract provider,

per year .................................................................................................................................... 75

*All services (including extension of the license) for a regularly licensed approved course provider,

per year .................................................................................................................................... 65

*All services (including extension of the license) for a regularly licensed approved continuing

education course, per year ....................................................................................................... 20

*All services (including extension of the license) for a regularly licensed vehicle protection product

warrantor, per year .................................................................................................................. 75

*All services (including extension of the license) for a regularly licensed limited lines self-service

storage producer, per year ....................................................................................................... 45

*All services (including extension of the license) for a regularly licensed authorized legal service

plan, per year ......................................................................................................................... 500

*The services referred to do not include services in connection with examinations, investigations,

hearings, appeals and deposits with a depository other than the Department of Commerce and

Consumer Affairs.

DEPOSITS

§ 431:3-205 Domestic insurers

Deposit amount equal to the paid-up capital stock (stock insurer) or surplus (reciprocal or mutual

insurer) as required in this state.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

§ 431:3-209 Alien and foreign insurers

Maintain a deposit equal to paid-up capital stock (stock insurer) or surplus (reciprocal or mutual

insurer) as required in this state or submit certificate of the public official having supervision over

insurance in another state that a deposit is maintained in another state. The deposit must be for the

benefit of all the insurer’s policyholders and obligees in the United States. The amount must meet

state requirements and may not be less than $500,000.

Retaliation—December 2023

CONTACT PERSON

Premium Taxes

Jenny Fujiwara: (808) 586-7380; jfu[email protected]ii.gov

Andy Chow: (808) 586-3874; [email protected]

Producer Licensing Fees

Emily Rakieten: (808) 586-2788; arakie[email protected]i.gov

Insurer Licensing Fees

Irene Y. Baek: (808) 586-8151; ibaek@dcca.hawaii.gov

Captive Fees

Andrew Kurata: (808) 586-0981; akur[email protected]i.gov

Deposits

Andy Chow: (808) 586-3874; achow@hawaii.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

IDAHO

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PREMIUM TAX

Premium Tax Base:

Idaho Code Ann. § 41-402

As to life insurers, gross premiums received on direct risks resident in this state, less returned

premiums and dividends paid or credited. Annuity considerations and amounts received for life

insurance issued under qualified retirement plans are not included. As to insurers other than life,

gross direct premiums on subjects of insurance resident, located or performed in this state, less

returned premiums, dental only policy premiums, premiums on policies not taken, and dividends

paid or credited. Report total premiums written through associations, trusts or groups that are

sited in a state other than Idaho but are for residents or risks located in Idaho and have not been

included as Idaho premiums on Schedule T. Idaho law does not permit an exemption from

payment of premium tax on Idaho risks based on the Rule of 500 or any other allocation

method. Stand-alone dental insurance is taxed separately (see below). If dental coverage is

included in a medical policy, it is all taxable premium. As to title and surety/bail insurers, gross

premium means the insurance risk portion of the amount charged.

Tax Rate:

§§ 41-402; 41-3715; 41-3922

1.5%

Includes Blue Cross and Blue Shield corporations that are mutual insurers, hospital liability trust,

and managed care organizations.

§ 41-402

1.5% title insurance

§ 41-402

Stand-alone dental care services and dental insurance contracts authorized by title 41, Idaho Code

are taxed at $0.04 per contract, per month. Calculate taxes on dental at $0.04 per contract (each

insured, group certificate holder or blanket policy participant) per month.

Retaliation—December 2023

Tax Rate (cont.)

§§ 41-1233; 41-1229; Idaho Admin. Code 18.06.06

Surplus line taxes are paid by the Idaho licensed resident or nonresident broker pursuant to the

surplus line laws of this state. The broker shall file with the Surplus Lines Association a report

within 30 days of procurement and pay a stamping fee of 0.50% (0.0050). The premium tax is

paid to the Director annually on or before Mar. 1 at the following rates:

1.5% surplus line tax rate

[Note: Please see the Surplus Lines chart for further information.]

§ 41-4805

Risk retention groups taxed same as foreign admitted insurer.

Other Taxes and Assessments:

§ 41-268 Arson, Fire and Fraud Prevention Account

Not separately assessed; included in the continuation fee as stated in Bulletin 00-3.

§ 72-327 Industrial Special Indemnity Fund

Companies transacting workers’ compensation insurance are required to pay an assessment each

year for deposit to the Industrial Special Indemnity Fund. The assessment is based on the

expenses of the fund and apportioned pro rata based upon the proportionate share of the gross

amount of indemnity benefits paid on Idaho workers’ compensation claims. In no case will the

assessment on an insurer be less than $200 semiannually and $400 per year, paid to the Idaho

Industrial Commission.

§ 72-523 Workers Compensation; § 72-306A Deductible Contract

A 2% workers’ compensation tax is collected by the Idaho Industrial Commission, in addition to

the regular premium tax due. The minimum tax due is $75 semiannually. The policyholder may

also choose a contract with large deductibles. The premium tax paid to the Idaho Industrial

Commission for large deductible policies will be calculated based on premiums which would

have been charged but for the deductible.

§ 41-3427 Hospital and Professional Service Corporations Tax

Pay tax at a rate of $0.04 per subscriber contract per month in lieu of premium tax.

§ 41-4012 Self-Funded Health Care Plans

Taxed at a rate of $0.04 per beneficiary per month. Plans exempted from DOI regulation by

ERISA law, with the exception of MEWAs or PEO plans, are not regulated or taxed.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 41-3608 Property and Casualty Guaranty Association

Association may assess member insurers an amount no greater than 1% net direct premiums

written for lines covered by account with deficiency.

§ 41-4309 Life and Health Guaranty Association

May assess member insurers no more than 2% net written premiums for kinds of coverage in

account with deficiency plus an assessment for the pro rata share of administrative expenses,

which shall be credited against future insolvency assessments.

§ 41-405 Preemption

Payment of premium tax shall be in lieu of all other taxes except on real property. No political

subdivision may assess any additional tax.

§§ 41-6001; 41-6006 Idaho Immunization Fund Assessment

Insurance entities are annually assessed on total number of program eligible children in the Idaho

Immunization Reminder Information System Registry who receive vaccines, purchased and

administered through the Idaho Immunization Program, for the previous state fiscal year. The

assessment is in lieu of insurers purchasing childhood vaccines from providers on a per dose

basis.

Exclusions and Deductions:

§ 41-402 Governmental Entities

Domestic reciprocal companies exclusively insuring members who are governmental entities

shall be exempt from premium tax. Domestic reciprocals doing exclusively workers’

compensation business are exempt from tax.

§ 41-3223 Fraternals

Fraternal benefit societies are exempt from payment of premium taxes.

Department Policy

The insurance department interprets 42 USCA 4014(B)(iii)(2) to exempt premiums paid for flood

insurance under the national flood insurance program.

Retaliation—December 2023

Credits:

§ 72-523 Workers’ Compensation Tax Credit

Workers’ compensation premium tax paid to the Idaho Industrial Commission semi-annually may

be credited against the regular premium tax liability to the Department of Insurance.

Any insurer

making any payment into the Industrial Administration Fund, shall be entitled to deduct from the

total premium tax due, either the lesser of the actual workers compensation premium tax liability

or 50% of the premium tax paid to the Idaho Industrial Commission. The allowable credit cannot

exceed the workers compensation premium tax liability.

§ 41-3616 Property and Casualty Guaranty Association

Assessments, other than administrative assessment, may be offset against premium tax liability

limit to the extent of 20% of the assessment for each of the five calendar years beginning with the

premium tax due under § 41-402(4) with respect to the year of payment of the assessment and

thereafter with the premium tax due under § 41-402(4) during each of the four succeeding years.

An allowable offset, or portion thereof, not used in any calendar year cannot be carried over or

back to any other year.

§ 41-4313 Life and Health Guaranty Association

Assessments, other than administrative assessment, may be offset against premium tax liability

limit to the extent of 20% of the assessment for each of the five calendar years beginning with the

premium tax due under § 41-402(4) with respect to the year of payment of the assessment and

thereafter with the premium tax due under § 41-402(4) during each of the four succeeding years.

An allowable offset, or portion thereof, not used in any calendar year cannot be carried over or

back to any other year.

Form Filing:

§ 41-210(4) Method of Filing

The Idaho Department of Insurance has adopted a mandatory e-file program and no longer

accepts paper filings. Effective Jan. 1, 2019, all tax and fee filings, including premium tax

statements, quarterly estimates, and continuation fee statements, must be submitted electronically

by one of the following methods:

(1) Directly through TriTech Premium Pro software; or

(2) Idaho Department of Insurance Electronic Filing System, located at

https://nonsub.tritechsoft.com/

Payment Due Dates:

§ 41-402

Return due on or before Mar. 1. If last year’s tax was $400 or more, quarterly prepayments shall

be made. Prepayments are based on prior years’ business at current year’s rates, pay 60% of tax

due on or before June 15, 20% on or before Sept. 15, and 15% on or before Dec. 15. Pay any

balance due with Mar. 1 return. All zero tax filings are required for prepayment and annual tax

forms.

Retaliation—December 2023

Penalties:

§§ 41-404; 41-1230; 41-4805(3); 41-3427(2)

Penalty of $25 a day for each day of delinquency. Director shall suspend certificate of authority

for any delinquent insurers.

§ 41-327

Director may impose penalty of up to $5,000 or revoke certificate of authority if fail to pay

premium tax due.

Extensions:

§ 41-404

May grant extension of not to exceed 30 days, for filing of the NAIC annual financial statement

in § 41-335. Request for NAIC annual financial statement extensions must be submitted in

writing prior to the due date. No extension is granted for submitting premium tax due.

Retaliatory Law:

§ 41-340

When any taxes in the aggregate assessed against Idaho insurers are greater than Idaho would

assess against similar insurers, retaliation will occur. Any taxes assessed by political subdivisions

are considered assessed by the state. This shall not apply to personal income taxes, ad valorem

taxes on real or personal property, nor to special use assessments imposed on particular kinds of

insurance other than property insurance. When an obligation is imposed on Idaho insurers or their

producers in excess of obligations imposed on similar insurers or producers of another state or

country, the same obligation will be imposed on insurers or producers seeking to do business in

Idaho. “Obligation” includes license, fee, fine, penalty, deposit requirement, prohibition, or

restriction.

§ 41-288

If any state imposes a sanction, fine, penalty, or deposit requirement on any Idaho-domiciled

insurer because of failure of Idaho to receive or maintain accreditation, the Idaho director shall

impose the same requirement on insurers domiciled in that state.

Retaliation—December 2023

FEES

Insurers’ Fees:

Idaho Admin. Code 18.01.0244; § 41-4804; Bulletin 00-3

Certification services:

Certified copy of certificate of authority...................................................................................... $50

Miscellaneous services:

Director’s certificate under seal (except certificate of authority,

certified copies thereof or licenses) ....................................................................................... 20

Each copy of document filed in his office; a reasonable cost as fixed by the director.

For rate and form filings not submitted electronically through the national System for

Electronic Rate and Form Filing (SERFF)—$20 for each rate or form filed in excess

of 10 per calendar year.

Valuing life insurance, actual cost of valuation but not to exceed one cent for each

one thousand dollars ($1,000) of insurance.

Receiving and forwarding copy of summons or other process served upon the director,

as process agent of an insurer ................................................................................................ 30

Receiving and forwarding copy of summons or other process served upon the director

as process agent of a nonresident producer, broker, or consultant ........................................ 30

Continuation fee:

An annual continuation fee covers most costs, other than those listed above. The fee is due

Mar. 1 and is based upon company surplus at the preceding Dec. 31:

Surplus less than $10,000,000 ............................................................................................ 1,000

Surplus greater than $10,000,000 but less than $100,000,000 ........................................... 2,500

Surplus greater than $100,000,000 ..................................................................................... 4,500

Fees for other licensed, listed or otherwise approved entities .................................................................. 500

Fees for purchasing groups ....................................................................................................................... 100

Retaliation—December 2023

Producer Licensing Fees:

§ 41-2710; Idaho Admin. Code 18.01.02

Filing application for original license, including license if issued:

Administrators (original application) ......................................................................................... $300

Producers; per license .................................................................................................................... 80

Designation as a managing general (agent) ................................................................................... 80

Adjusters and public adjusters ....................................................................................................... 80

Reinsurance intermediary .............................................................................................................. 80

Surplus lines brokers ...................................................................................................................... 80

Life settlement providers ............................................................................................................. 500

Life settlement brokers ................................................................................................................ 300

Independent review organization ................................................................................................. 500

A vendor of portable electronic insurance who is engaged in portable electronic

transactions at more than 10 locations in the state of Idaho ............................................ 1,000

A vendor of portable electronic insurance who is engaged in portable electronic

transactions at 10 or fewer locations in the state of Idaho .................................................. 100

License renewal:

Adjusters, public adjusters, and producers (biennial) .................................................................... 80

If renewed electronically ....................................................................................................... 60

A vendor of portable electronic insurance who is engaged in portable electronic

transactions at more than 10 locations in the state of Idaho ............................................... 500

A vendor of portable electronic insurance who is engaged in portable electronic

transactions at 10 or fewer locations in the state of Idaho .................................................. 100

Administrators (biennial) ............................................................................................................... 80

Surplus lines brokers (biennial) ..................................................................................................... 80

If renewed electronically ....................................................................................................... 60

Life settlement providers (biennial) ............................................................................................. 300

Life settlement brokers (biennial) .................................................................................................. 80

Independent review organization (biennial) ................................................................................ 300

itle agent:

License application ........................................................................................................................ 50

License renewal ............................................................................................................................. 50

Examination fees:

Producers, public adjusters, and adjusters - Application for examination and each time

taken, other than as to variable contracts ................................................................................. set fee

Processing fingerprints, where required ............................................................................. not to exceed 80

Redesignation as managing general agent (annual) ................................................................................... 80

Fees may be paid by producer or company. Retaliation occurs as each producer pays fee. All fees are

nonrefundable except as noted.

Retaliation—December 2023

DEPOSITS

§ 41-316

A deposit of $1,000,000 is required for a domestic insurer. A foreign insurer may present instead

a certificate certifying membership in the guaranty association, and a certificate of deposit in the

amount of $1,000,000 or greater for the benefit of all policyholders from its state of domicile.

→ CONTACT PERSON

Premium Tax Specialist

Lynn Shelton: (208) 334-4281; lynn.shelton@doi.idaho.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

ILLINOIS

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

All insurers are subject to the annual privilege tax based on the net taxable direct premium written

reduced by return premiums and dividends as filed in the annual statement. It does not include

annuity considerations, premiums on which state premium taxes are prohibited by federal law,

premiums paid by the state for health care coverage for Medicaid eligible insureds as described in

Section 5-2 of the Illinois Public Aid Code, and premiums for deferred compensation plans for

employees of the state, units of local government or school districts.

Tax Rate:

215 Ill. Comp. Stat. (ILCS) 5/123B-4

Risk retention group taxed same as foreign admitted insurer.

215 ILCS 5/409 Privilege Tax

All companies doing insurance business in Illinois, except health, must pay an annual privilege tax

of 0.5% of the net taxable premiums written for the taxable year. The rate is 0.4% of health

premiums.

Other Taxes and Assessments:

35 ILCS 5/201 Income Tax

All companies are liable for income tax on net income apportioned to Illinois. Quarterly estimates

due. Allowed as a privilege tax deduction if the income tax paid in a calendar year exceed 1.5% of

the premiums written in the same calendar year. Allowance for all income tax paid in a calendar

year by showing in the retaliatory tax computation as a state of Illinois basis item.

215 ILCS 5/416 Illinois Workers’ Compensation Commission Operations Fund Surcharge

Every company licensed or authorized by the department of insurance and insuring employers’

liabilities arising under the workers’ compensation act shall pay a surcharge of 1.01% upon the

work comp annual direct written premium. This surcharge is a separate stated surcharge on insured

employers and IS NOT included in retaliatory calculation.

425 ILCS 25/12; IAC 2500.10 to 2500.140 Fire Marshal Tax

Annual tax is 1% of premium on fire, and the element of fire coverage on sprinkler leakage, riot,

civil commotion, explosion and motor vehicle as determined by the annual worksheet. Also

included in retaliatory calculation.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

65 ILCS 5/11-10-1 Fire Department Tax

Foreign fire insurers shall pay a tax equal to 2% of fire premium to the local municipality or fire

protection district for the benefit of their fire department. Payments to the Illinois Municipal League

do not require proof of payment but payments to the city of Chicago, Cicero, East St. Louis and

Wilmette require proof of payment. Total paid is offset to the privilege tax and included in the

retaliatory calculation.

35 ILCS 5/304 Personal Property Replacement Income Tax

Imposed on net income of every corporation for privilege of earning income in state. Statute tells

how to allocate insurance business in Illinois. Included in retaliatory calculation.

820 ILCS 305/7 Workers’ Compensation Rate Adjustment Fund

Pay 1.25% of all compensation payments into fund. NOT included in Illinois retaliatory tax

computation.

820 ILCS 305/7 Second Injury Fund

Pay 0.125% of all compensation payments into this special fund. NOT included in Illinois

retaliatory tax computation.

215 ILCS 105/12 Comprehensive Health Insurance Plan

Insurers may be assessed to cover the expenses of the plan. Each insurers’ share of the deficit is

based on its share of the total direct premiums. The board of directors shall have the assessment

authority to pay off a loan that is projected to be outstanding for 3 years or more, and to increase

the assessment to 3% of the net direct written premiums for the previous year until the loan has

been paid in full. NOT included in retaliatory calculation.

215 ILCS 5/537.6 Property and Casualty Insurance Guaranty Fund

May assess member insurers no more than 1% net direct written premium on the kinds of insurance

in the account with the deficiency. Assessments of 2% may be made, regardless of when the

insolvency occurred. NOT included in retaliatory calculation.

215 ILCS 5/531.09 Life and Health Guaranty Association

May assess member insurers for administrative expenses and an amount not to exceed 2% of

average net premiums for past three years for types of insurance in account or subaccount with

deficiency. NOT included in retaliatory tax computation.

215 ILCS 5/415 Preemption

The fees and taxes provided for by this article are in lieu of all other taxes and fees. No political

subdivision may impose any other tax or fee, except for property taxes and fire department tax.

Retaliation—December 2023

Exclusions and Deductions:

215 ILCS 5/304.2 Fraternal Benefit Societies

Fraternals are exempt from tax.

Payment Due Dates:

215 ILCS 5/409; 5/444.1

The final return is due Mar. 15. If prior year total tax was more than $5,000 a quarterly return must

be filed. Quarterly installments of privilege tax and retaliatory tax due by April 15, June 15, Sept.

15, and Dec. 15. Quarterly estimates must equal 80% of current year’s tax or 100% of last year’s

tax. (The year’s tax is the privilege tax plus the retaliatory tax.)

Penalties:

215 ILCS 5/412

Penalty for failure to file return is $400 or 10% of tax, whichever is greater, for each month or part

of month; the entire penalty shall not exceed the greater of 50% of tax or $2,000. Penalty for late

payment or underpayment is 10% of deficiency. For willful violations, the penalty is 50% of the

deficiency or 10% of the amount due and unpaid for each month. In addition to the penalty, add

interest at the rate established by I.R.C. § 6621.

Extensions:

None.

Retaliatory Law:

215 ILCS 5/444

Any taxes, licenses or other fees in the aggregate, or any fines, penalties, deposit requirements as

would be imposed on Illinois insurers as a condition precedent to their doing business in other states

that would exceed those Illinois imposes on insurers, agents or representatives of insurers domiciled

in other states, shall result in a retaliatory tax. This tax shall not apply to residual market or special

purpose assessments or guaranty fund or guaranty association assessments under the laws of this

state and under the laws of any other state or country.

The taxes, licenses or other fees for the Illinois basis includes only those found in Article XXV of

the Illinois Insurance Code. Retaliatory tax is calculated in the aggregate for all insurance taxes and

fees.

Retaliation—December 2023

FEES

Taxes and fees used in the retaliatory tax computation are those found in the code sections referenced below.

→ Insurers’ Fees:

215 ILCS 5/408 to 5/415; 5/123A-4

Certificate of authority application:

Filing all documents submitted for the incorporation or organization or

certification of a domestic company, except for a fraternal benefit society ................... $2,000

Filing all documents submitted for the incorporation or organization

of a fraternal benefit society ................................................................................................ 500

Filing amendments to articles of incorporation and amendments to declaration

of organization, except for a fraternal benefit society, a mutual benefit

association, a burial society or a farm mutual...................................................................... 200

Filing amendments to articles of incorporation of a fraternal benefit society, a

mutual benefit association or a burial society ...................................................................... 100

Filing amendments to articles of incorporation of a farm mutual .................................................. 50

Filing bylaws or amendments thereto ............................................................................................ 50

Filing all documents submitted by a foreign or alien company to be admitted to

transact business or accredited as a reinsurer, except for a fraternal benefit society ........ 5,000

Filing all documents submitted by a foreign or alien fraternal benefit society to

be admitted to transact business........................................................................................... 500

Filing declaration of withdrawal of a foreign or alien company .................................................... 50

Filing a Plan of Division of a domestic stock company ......................................................... 10,000

Reinsurance:

Filing agreements of reinsurance by a domestic company .......................................................... 200

Filing documents for certified reinsurer status ......................................................................... 1,000

Renewal of certified reinsurer status ..................................................................................... 400

Filing documents for reciprocal jurisdiction status ................................................................... 1,000

Renewal of reciprocal jurisdiction status .............................................................................. 400

Annual statement:

Filing annual statement by a domestic company, except a fraternal benefit society,

a mutual benefit association, a burial society or a farm mutual ............................................ 200

Filing annual statement by a domestic fraternal benefit society .................................................. 100

Filing annual statement by a farm mutual, a mutual benefit association, or a

burial society ........................................................................................................................... 50

Certificate of authority:

Issuing a certificate of authority or renewal thereof except to a foreign fraternal

benefit society........................................................................................................................ 400

Issuing a certificate of authority or renewal thereof to a foreign fraternal benefit society .......... 200

Issuing an amended certificate of authority. .................................................................................. 50

Retaliation—December 2023

Insurers’ Fees (cont.)

215 ILCS 5/408 to 5/415; 5/123A-4 (cont.)

Miscellaneous services:

Each certified copy of certificate of authority ............................................................................. $20

Each certificate of deposit, or valuation, or compliance or surety certificate ................................ 20

Copies of papers or records per page ............................................................................................... 1

Each certification to copies of papers or records ........................................................................... 10

Multiple copies of certificate of authority, certificate of deposit, or other certified copies:

First copy of a certificate of any type ...................................................................................... 10

Each additional copy of the same certificate requested at the same time,

unless the Director finds these additional fees excessive ....................................................... 5

Copy of any document subject to public inspection and maintained on a computer

processible medium .................................................................................................... actual cost

Issuing any other certificate required or permissible under the law .............................................. 50

Service of process .......................................................................................................................... 40

Mergers and acquisitions:

Filing agreement of merger or consolidation:

For a domestic company, except for a fraternal benefit society, a mutual

benefit association, a burial society or a farm mutual .................................................. 2,000

For a foreign or alien company, except for a fraternal benefit society .................................. 600

For a fraternal benefit society, a mutual benefit association, a burial

society or a farm mutual ................................................................................................. 200

Filing a plan of exchange of the stock of a domestic stock insurance company, a plan of

demutualization of a domestic mutual company, or a plan or reorganization ................... 2,000

Filing a statement of acquisition of a domestic insurance company ......................................... 2,000

Filing a statement of acquisition of a foreign or alien insurance company............................... 1,000

Issuing a permit to sell shares or increase paid-up capital:

in connection with a public stock offering ............................................................................ 300

in any other case .................................................................................................................... 100

Filing an agreement to purchase the business of an organization authorized under

the dental, vision, pharmaceutical, or voluntary health service plan acts or a health

maintenance organization ................................................................................................... 2,000

Filing a registration statement ...................................................................................................... 200

Other licenses:

Filing an application for licensing of:

Religious or charitable risk pooling trust or a workers’ compensation pool ...................... 1,000

Workers’ compensation service company ............................................................................. 500

Self-insured automobile fleet ................................................................................................ 200

Renewal of or amendment of any license issued pursuant to the above ............................... 100

Advisory organizations ............................................................................................................ 50

Retaliation—December 2023

Insurers’ Fees (cont.)

215 ILCS 5/408 to 5/415; 5/123A-4 (cont.)

Form filing fees:

Policy forms ................................................................................................................................. $50

Advisory organizations’ form filings ........................................................................................... 200

A policy filed as it will be issued regardless of the number of forms shall not exceed $1,500. A

policy filed by an advisory organization, as it will be issued regardless of the number of forms shall

not exceed $2,500. (Effective Aug. 26, 2011.)

Financial Regulation Fee:

The fee for domestic companies is based on a combination of nationwide direct premium income and

nationwide reinsurance assumed premium income or admitted assets, whichever results in the larger

amount:

Premium

Fee

If the premium is less than $500,000 and there is no reinsurance assumed

premium

$150

If the premium is $500,000 or more, but less than $5,000,000 and there is

no reinsurance assumed premium; or if the premium is less than

$5,000,000 and the reinsurance assumed premium is less than $10,000,000

750

If the premium is less than $5,000,000 and the reinsurance assumed

premium is $10,000,000 or more

3,750

If the premium is $5,000,000 or more, but less than $10,000,000

7,500

If the premium is $10,000,000 or more, but less than $25,000,000

18,000

If the premium is $25,000,000 or more, but less than $50,000,000

22,500

If the premium is $50,000,000 or more, but less than $100,000,000

30,000

If the premium is $100,000,000 or more

37,500

Admitted Assets

Fee

If admitted assets are less than $1,000,000

$150

If admitted assets are $1,000,000 or more, but less than $5,000,000

750

If admitted assets are $5,000,000 or more, but less than $25,000,000

3,750

If admitted assets are $25,000,000 or more, but less than $50,000,000

7,500

If admitted assets are $50,000,000 or more, but less than $100,000,000

18,000

If admitted assets are $100,000,000 or more, but less than $500,000,000

22,500

If admitted assets are $500,000,000 or more, but less than $1,000,000,000

30,000

If admitted assets are greater than $1,000,000,000

37,500

Retaliation—December 2023

Insurers’ Fees (cont.)

215 ILCS 5/408 to 5/415 (cont.)

Financial Regulation Fee (cont.)

The sum of financial regulation fees for affiliated groups shall not exceed $250,000 in the aggregate in a

single year. By April 1 the affiliated group must notify the department of its members and designate one

member of the group to be billed. Failure to file by April 1 will cause the affiliated companies to pay

individually.

The financial regulation fee paid by foreign and alien insurers is an offset to the retaliatory tax computation.

The fee for foreign insurers shall be based upon Illinois direct premium income and nationwide reinsurance

assumed premium income in accordance with following schedule.

Premium

Fee

If the premium is less than $500,000 and there is no reinsurance assumed

premium

$150

If the premium is $500,000 or more, but less than $5,000,000 and there is

no reinsurance assumed premium; or if the premium is less than

$5,000,000 and the reinsurance assumed premium is less than

$10,000,000

750

If the premium is less than $5,000,000 and the reinsurance assumed

premium is $10,000,000 or more

3,750

If the premium is $5,000,000 or more but less than $10,000,000

7,500

If the premium is $10,000,000 or more, but less than $25,000,000

18,000

If the premium is $25,000,000 or more, but less than $50,000,000

22,500

If the premium is $50,000,000 or more, but less than $100,000,000

30,000

If the premium is $100,000,000 or more

37,500

The sum of financial regulation fees for affiliated groups shall not exceed $250,000 in the aggregate in a

single year. By April 1 the affiliated group must notify the department of its members and designate one

member of the group to be billed. Failure to file by April 1 will cause the affiliated companies to pay

individually.

Retaliation—December 2023

Producer Licensing Fees:

215 ILCS 5/408; 5/500-135; 5/445; 5/500-35; 5/511.105

Producer license:

Resident insurance producer license, biennially renewed.......................................................... $215

Nonresident insurance producer, biennially renewed .................................................................. 380

Resident temporary insurance producer license ............................................................................. 50

Registration for a business entity, biennially renewed ................................................................ 150

Reinstating a license (double amount of renewal fee) ................................................................. 430

Reinstatement fee for non-residents ............................................................................................. 760

Limited insurance representative license, annually renewed ........................................................ 50

Resident limited insurance representative car rental license, biennially renewed ....................... 215

Nonresident limited insurance representative car rental license, biennially renewed .................. 380

Limited lines not on specified list, renewable biennially ............................................................. 200

Self-service storage facility limited line license, biennially .......................................................... 50

Reinsurance intermediary:

Filing an application for licensing of a reinsurance intermediary ................................................ 500

Renewal of reinsurance intermediary license .............................................................................. 200

Surplus lines:

Annual license fee ........................................................................................................................ 400

Third Party Administrator:

Annual filing fee .......................................................................................................................... 200

Examinations:

Processing of each request to take the written examination for an insurance

producer license ................................................................................................................... 92*

Registration for an education provider to register .................................................................... 1,000

Each certified prelicensing or continuing education course .......................................................... 50

Renewing the certification of each such course ............................................................................. 20

Annual license paid by producer, not the company. There is no retaliation on agents’ licensing fees.

*Candidates are now required to take two individual examinations to obtain a license, a General

examination and a state examination, candidates will receive a discount of $92 providing that the two

associated exams for the license are processed on the same order. If the General examination and State

examination for a line are ordered separately the candidate will be charged $92 for each examination. The

discount only applies to 2 examinations for the same line on the same order.

Retaliation—December 2023

DEPOSITS

215 ILCS 5/26 Domestic Stock Insurers

Insurer shall maintain deposit having a fair market value equal to the minimum capital and surplus

required to be maintained.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

215 ILCS 5/53 Domestic Mutual Insurers

Insurers shall maintain deposit having a fair market value equal to the minimum capital and surplus

required to be maintained.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

215 ILCS 5/111 Foreign Insurer

Deposit amount equal to that required for domestics or satisfy the director that a similar deposit has

been made with another state.

215 ILCS 125/2-6 HMOs

Maintain deposit having a fair market value of $300,000.

215 ILCS 130/2006 Limited Health Service Organization

The amount will vary depending on whether company writes point of service contracts. May be up

to $200,000.

→ CONTACT PERSON

Privilege Tax, Retaliatory Tax

→ Kathy Staggs (217) 782-0055

Deposits

→ Kathy Staggs: (217) 782-0055

Fee Payments

(217) 557-3379

→ DOI.TaxAudit@illinois.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

INDIANA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Ind. Code § 27-1-18-2

Gross premiums minus considerations received for reinsurance of risks within Indiana from

companies authorized to transact insurance in Indiana, dividends paid to resident insureds,

returned premiums, and unearned premiums returned on account of cancellation. It is insurance

department policy not to tax health maintenance organizations, farm mutuals, accredited

reinsurers or annuities.

Tax Rate:

§ 27-1-18-2

For foreign companies, and domestics electing to pay under this section, the tax rate is 1.3%.

§ 27-7-10-15

Risk retention group taxed same as foreign admitted insurer.

Other Taxes and Assessments:

§ 22-3-3-13 Second Injury Fund

May assess insurance carriers and self-insured employers up to 2.5% of total amount of total

losses paid, including medical, if, on or before Nov. 1, the fund’s balance is below 135% of the

previous year’s total disbursements.

→ §§ 22-8-1.1-45 to 22-8-1.1-47 INSafe

May assess insurers and self-insured employers 0.75% of total amount of workers’ compensation

benefit paid when fund drops below $600,000. There was no an assessment in 2023.

§ 22-3-11-2 Residual Asbestos Injury Fund

May assess insurers 0.5% of total amount of workers’ compensation and occupational disease

benefits paid during last calendar year. No future assessments are expected.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 27-8-10-2.1 Indiana Comprehensive Health Insurance Association

Assess health insurers and prepaid health care delivery plans for losses of pool.

§ 27-6-8-7 Property and Casualty Guaranty Association

May assess member insurers up to $50 per year for administrative expenses and up to 1% net

direct written premiums for kinds of insurance in account with deficiency.

§ 27-8-8-6 Life and Health Guaranty Association

May assess member insurers no more than $150 per year for administrative expenses and a

maximum of 2% prior year’s premiums for type of insurance covered by account with deficiency.

§ 27-1-18-2 Preemption

Taxes under this article are in lieu of all other taxes. No political subdivision shall impose any

license or tax upon companies or agents except taxes on real or personal property.

Exclusions and Deductions:

§ 27-11-7-4 Fraternal Benefit Societies

Fraternals are exempt from payment of the premium tax.

Credits:

§ 6-3-3-10 Enterprise Zone Employers; Credit, Employment Expenditures

A taxpayer is entitled to a credit against the taxpayer’s qualified state tax liability for a taxable

year in the amount of the lesser of the product of 10% multiplied by the qualified increased

employment expenditures of the taxpayer for the taxable year; or $1,500 multiplied by the

number of qualified employees employed by the taxpayer during the taxable year; or the amount

of the credit provided by this section that a taxpayer uses during a particular taxable year may not

exceed the taxpayer’s qualified state tax liability for the taxable year.

§ 6-3.1-7-2 Enterprise Zone Loan Interest Credit

A taxpayer is entitled to a credit against the taxpayer’s state tax liability for a taxable year if the

taxpayer:

(1) Receives interest on a qualified loan in that taxable year;

(2) Pays the registration fee charged to zone businesses under § 5-28-15-5;

(3) Provides the assistance to urban enterprise associations required from zone businesses

under § 5-28-15-5(b); and

(4) Complies with any requirements adopted by the board of the Indiana economic

development corporation under § 5-28-15 for taxpayers claiming the credit under this

chapter.

Retaliation—December 2023

Credits (cont.)

§ 6-3.1-34-11 Redevelopment Tax Credit

A taxpayer may claim a credit against the taxpayer’s state tax liability for a taxable year only if

the corporation awards a credit to the taxpayer and enters into an agreement with the taxpayer as

set forth under this chapter.

§§ 6-3.1-13-1.5 to 6-3.1-13-26 Economic Development for a Growing Economy Tax Credit

An insurer may take a credit against its premium tax liability if the taxpayer is awarded a credit

by the board (department of revenue) under this chapter for that taxable year. An insurer that

proposes a project to create new jobs may apply to the board for a credit. The duration of the

credit may not exceed 10 years (20 years effective 7/1/2022). If the credit exceeds the tax liability

for the year, the taxpayer may receive a refund.

§ 6-3.1-19-3 Community Revitalization Enhancement District Tax Credit

A taxpayer is entitled to a credit against the taxpayer’s state and local tax liability for a taxable

year if the taxpayer makes a qualified investment in that year. The amount of the credit to which a

taxpayer is entitled is the qualified investment made by the taxpayer during the taxable year

multiplied by 25%.

§ 6-3.1-24-6 Venture Capital Investment Tax Credit

A taxpayer that: provides qualified investment capital to a qualified Indiana business; and fulfills

the requirements of the Indiana economic development corporation under § 6-3.1-24-12.5; is

entitled to a credit against the person’s state tax liability in a taxable year equal to the amount

specified in § 6-3.1-24-10.

§ 6-3.1-26-13 Hoosier Business Investment Tax Credit

A taxpayer that is awarded a tax credit under this chapter by the corporation; and complies with

the conditions set forth in this chapter and the agreement entered into by the corporation and the

taxpayer under this chapter; is entitled to a credit against the taxpayer's state tax liability in a

taxable year.

§ 6-3.1-29-14 Coal Gasification Technology Investment Tax Credit

A taxpayer that is awarded a tax credit under this chapter by the corporation; and complies with

the conditions set forth in this chapter and the agreement entered into by the corporation and the

taxpayer under this chapter; is entitled to a credit against the taxpayer’s state tax liability for a

taxable year in which the taxpayer places into service an integrated coal gasification powerplant

or a fluidized bed combustion technology and for the taxable years provided in § 6-3.1-29-16.

Retaliation—December 2023

Credits (cont.)

§§ 6-3.1-30.5-7; 6-3.1-30.5-8; DOR Info. Bulletin #108 (July 1, 2014) School Scholarship Tax Credit

A taxpayer that makes a contribution to a scholarship granting organization for use by the

scholarship granting organization in a school scholarship program is entitled to a credit against

the taxpayer’s state tax liability in the taxable year in which the taxpayer makes the contribution.

The amount of a taxpayer’s credit is equal to 50% of the amount of the contribution. For

taxpayers entitled to a tax credit for a taxable year beginning on or after Jan. 1, 2013, the credit

can be carried forward for nine years after the year in which it is first available.

§ 6-3.1-30-9 Headquarters Relocation Tax Credit

The amount of the credit to which a taxpayer is entitled under § 6-3.1-30-8 equals the product of

50% multiplied by the amount of the taxpayer’s relocation costs in the taxable year. The credit to

which a taxpayer is entitled under § 6-3.1-30-8 may not reduce the taxpayer’s state tax liability

below the amount of the taxpayer’s state tax liability in the taxable year immediately preceding

the taxable year in which the taxpayer first incurred relocation costs.

§ 6-3.1-34.6-8 Credit for placing qualified vehicle into service

A person that places a qualified vehicle into service in a particular taxable year may claim a credit

against the person's state tax liability for that taxable year. Subject to §§ 6-3.1-34.6-9 and 6-3.1-

34.6-10, the amount of the credit that may be claimed for placing a qualified vehicle into service

is the amount determined in STEP THREE of the following formula:

Step One: Determine the difference between:

(A) The price of the qualified vehicle; and

(B) The price of a similarly equipped vehicle of the same make and model that is

Step Two: Multiply the STEP ONE result by 50%.

Step Three: Determine the lesser of:

(A) The STEP TWO result; or

(B) $15,000.

→ §§ 6-3.1-39.5-1 to 6-3.1-39.5-15 Employer Childcare Expenditure Credits

Effective January 1, 2024, a new Employer Childcare Expenditure credit is available against the

insurance premium tax. A taxpayer that makes a qualified childcare expenditure is allowed a

credit that is equal to the lesser of 50% of the employer’s qualified expenditures in the tax year or

$100,000. Unused credit amounts may be carried over for 3 tax years and there are recapture

procedures that are triggered by certain events. The credit expires July 1, 2025.

Retaliation—December 2023

Credits (cont.)

→ §§ 6-3.1-38-1 to 6-3.1-38-9 Health Reimbursement Arrangement Credit

A taxpayer that has adopted a health reimbursement arrangement can claim an insurance

premium tax credit for a qualified contribution. The taxpayer must have less than 50 employees.

The amount of tax credit granted in any tax year cannot exceed $10 million. Credit can be carried

over for up to 10 years and is not refundable. The credit applicable to taxable years beginning

after December 31, 2023.

→ §§ 6-3.1-37.2-1 to 6-3.1-37.2-17 Mine Reclamation Credit

A taxpayer that enters into an agreement with Indiana, for an investment to develop properly

located on reclaimed coal mining land, will be eligible for an insurance premium tax credit. The

amount of the credit may not exceed the lessor of the qualified investment made by the taxpayer

during the taxable year multiplied by 30%; or $5 million. The aggregate amount of tax credits

allowed may not exceed $25 million during the period beginning January 1, 2023, and ending

December 31, 2027. The credit can be carried forward for 10 tax years following the year in

which the taxpayer is first entitled to claim the credit. The credit cannot be carried back or

refunded. The credit is available for tax years beginning after December 31, 2022, and expires

December 31, 2027.

§ 27-8-8-16 Life and Health Guaranty Association

Assessments may be offset against premium taxes, income taxes, etc., up to 20% per year

beginning year after assessments paid or may adjust rates to recoup assessment.

§ 27-6-8-15 Property and Casualty Guaranty Association

Assessments may be offset against premium, income taxes, etc., up to 20% per year beginning

year after assessments paid until the aggregate of all assessments paid has been offset.

§ 27-8-10-2.1 Comprehensive Health Insurance

Members who during any calendar year, have paid one or more assessments levied under this

chapter may include in the rates for premiums charged for insurance policies to which this

chapter applies amounts sufficient to recoup a sum equal to the amounts paid to the association by

the member less any amounts returned to the member insurer by the association, and the rates

shall not be deemed excessive by virtue of including an amount reasonably calculated to recoup

assessments paid by the member.

Retaliation—December 2023

Credits (cont.)

§ 27-8-10-2.4; Bulletin 131

No additional tax credits will be earned for assessments paid by members of ICHIA on or after

Jan. 1, 2005. Any member of ICHIA that before Jan. 1, 2005 paid an assessment and had not

taken a credit against the premium taxes is not entitled to claim any unused tax credit for the

taxable years beginning after Dec. 31, 2004 and ending before Jan. 1, 2007. Thereafter, a member

that has unused credits on Jan. 1, 2007, may take an annual credit of 10% of the amount of the

assessments paid before Jan. 1, 2005, against which the credit has not been taken. The amount of

the annual credit may not exceed the amount of premium tax that is due for the taxable year. If

the amount of the tax credit available exceeds the member’s liability for the taxable year, the

member may carry forward the amount of the unused annual credit to subsequent taxable years.

The unused annual tax credits carried forward are not subject to the 10% limit. The tax credits

available may be carried forward indefinitely, but the total amount of credits taken may not

exceed the total amount of tax credits that were available on Jan. 1, 2005.

Payment Due Dates:

§ 27-1-18-2

Return filed and payment received on or before Mar. 1. Quarterly estimates due on or before

April 15, June 15, Sept. 15 and Dec. 15. Each estimate shall be equal to 25% of prior year’s tax or

20% of actual tax for current year.

§ 22-8-1.1-48 INSafe

The annual tax payment is due and payable on or before May 1 of each year in which the tax is

imposed.

Penalties:

§ 27-1-18-2

Interest at rate of 1% per month or part of a month for any quarterly amount due and unpaid. Any

insurer failing to file return and pay the tax due for more than 30 days shall be subject to a penalty

of $100 for each additional day the return is delayed, not to exceed a maximum penalty of

$10,000. Department may suspend certificate of authority until paid.

Extensions:

None provided in the statutes.

Retaliation—December 2023

Retaliatory Law:

§ 27-1-20-12

When the taxes, fines, penalties, licenses, fees, deposits, etc., imposed on Indiana insurers or their

agents by other states exceed the amounts imposed by Indiana on similar insurers or agents,

retaliation will occur.

Retaliation is computed on the premium tax return, for taxes, and on the fee statement for fees.

FEES

→ Insurers’ Fees:

§§ 27-1-3-15; 27-5.1-2-15; 27-7-3-15; 27-8-3-25; 27-11-8; 27-13-27-1; 27-13-27-2; 27-13-34-23;

27-1-25-11.1; 760 Ind. Admin. Code (IAC) 1-52-3; 760 IAC 1-51-3; 760 IAC 5-2-3

Admission fees (due at the time of application):

Foreign Insurers:

Issuance of certificate of authority ........................................................................................ $50

Annual statement ................................................................................................................... 100

Articles of incorporation ....................................................................................................... 350

Bylaws ..................................................................................................................................... 25

Appointment of agent for service of process ........................................................................... 10

Domestic Insurers:

Articles of incorporation ....................................................................................................... 350

HMO and LSHMO

Admission fee ........................................................................................................................ 350

Annual fees domestic insurers (due Mar. 1):

Farm Mutual:

Filing annual statement ......................................................................................................... 100

Renewal of certificate of authority .......................................................................................... 50

Internal audit fee .................................................................................................................... 250

Fraternal:

Filing annual statement ........................................................................................................... 25

Renewal of certificate of authority .......................................................................................... 25

Internal audit fee .................................................................................................................... 250

HMO & LSHMO:

Filing annual statement ........................................................................................................... 50

Renewal of certificate of authority .......................................................................................... 50

Internal audit fee ................................................................................................................. 1,000

Life, P&C, Reciprocals and RRG’s:

Filing of annual statement ..................................................................................................... 100

Renewal of certificate of authority ................................

.......................................................... 50

Internal audit fee ................................................................................................................. 1,000

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 27-1-3-15; 27-5.1-2-15; 27-7-3-15; 27-8-3-25; 27-11-8; 27-13-27-1; 27-13-27-2; 27-13-34-23;

27-1-25-11.1; 760 IAC 1-52-3; 760 IAC 1-51-3; 760 IAC 5-2-3 (cont.)

Annual fees foreign insurers (due Mar. 1) (cont.)

Title:

Filing of annual statement ..................................................................................................... $20

Renewal of certificate of authority ............................................................................................ 5

Internal audit fee ................................................................................................................. 1,000

Fraternal:

Filing annual statement ........................................................................................................... 25

Renewal of certificate of authority .......................................................................................... 25

Internal audit fee .................................................................................................................... 250

HMO & LSHMO:

Filing annual statement ........................................................................................................... 50

Renewal of certificate of authority .......................................................................................... 50

Internal audit fee ................................................................................................................. 1,000

Life, P&C and Reciprocals:

Filing of annual statement ..................................................................................................... 100

Renewal of certificate of authority .......................................................................................... 50

Examining statement of condition ............................................................................................. 5

Internal audit fee ................................................................................................................. 1,000

Risk Retention Groups:

Filing of annual statement ..................................................................................................... 100

Title:

Filing of annual statement ....................................................................................................... 20

Renewal of certificate of authority ............................................................................................ 5

Internal audit fee ................................................................................................................. 1,000

Other fees (due with amended document and/or request):

Filing of articles of incorporation .................................................................................................. 10

Filing of bylaws ............................................................................................................................. 25

Certifying documents ..................................................................................................................... 10

Certificate of deposit ...................................................................................................................... 10

Certificate of compliance ............................................................................................................... 10

Certificate of valuation .................................................................................................................. 10

Filing foreign change of control .................................................................................................... 25

Filing service of process upon the commissioner .......................................................................... 10

Withdrawal of certificate of authority ............................................................................................ 25

Any other document required to be filed by this article................................................................. 25

Redomestication to Indiana:

Application ............................................................................................................................ 350

Redomestication (foreign):

Articles of incorporation (if amended) .................................................................................... 10

Amended certificate of authority ............................................................................................. 10

Bylaws (if amended) ............................................................................................................... 25

Retaliation—December 2023

Insurers’ Fees (cont.)

§§ 27-1-3-15; 27-5.1-2-15; 27-7-3-15; 27-8-3-25; 27-11-8; 27-13-27-1; 27-13-27-2; 27-13-34-23;

27-1-25-11.1; 760 IAC 1-52-3; 760 IAC 1-51-3; 760 IAC 5-2-3 (cont.)

Other fees (due with amended document and/or request) (cont.)

Name change filing:

Amended articles of incorporation ........................................................................................ $10

Amended bylaws ..................................................................................................................... 25

Amended certificate of authority ............................................................................................. 10

HMO & LSHMO:

Amended certificate of authority ........................................................................................... 350

Additional/deletion of lines of business filing:

Articles of incorporation (if amended) .................................................................................... 10

Amended certificate of authority ............................................................................................. 10

Filing of each policy, rider and endorsement ................................................................................. 35

Filing of rates ................................................................................................................................. 35

Filing of rules ................................................................................................................................. 35

Maximum fee for a product filing (rates, rules, forms) capped at ............................................ 1,000

Filing of a policy, rider, endorsement, rate(s) or rule(s) for commercial

property & casualty products is considered to be part of a single

filing for which the insurer is subject to a fee ........................................................................ .35

Managing general agent:

Initial/Renewal license ...................................................................................... 100 per appointment

Reinsurance intermediary broker/manager:

Initial/Renewal license ................................................................................................................. 100

Third party administrators:

Initial/Renewal license ................................................................................................................... 50

Pharmacy benefit managers

Initial/Renewal license ................................................................................................................. 500

Retaliation—December 2023

Producer Licensing Fees:

§§ 27-1-15.6-32; 27-1-15.6-23; 27-1-15.6-5; 27-10-3-4; 27-10-3-5; 27-10-3-7; 27-1-27-4; 760 IAC 1-6.2

Licenses:

For each license issued to a resident insurance producer or to a limited insurance

representative every two years .............................................................................................. $40

For each license issued to a nonresident insurance producer or to a

limited insurance representative every two years .................................................................... 90

Designated home state license ....................................................................................................... 90

For a license issued to an insurance consultant every two years ................................................... 40

For a license issued to a resident surplus lines insurance agent biennially .................................... 80

For a license issued to a nonresident surplus lines agent biennially ............................................ 120

For a certificate of authority issued to a public adjuster annually ................................................. 50

For an initial license issued to a bail bond agent ......................................................................... 650

For renewal license issued to a bail bond agent ........................................................................... 300

For an initial/renewal license issued to a recovery agent ............................................................. 300

Examination fees:

Insurance producers, surplus lines insurance agents and

insurance consultants’ examinations ....................................................................................... 69

Public adjusters, bail and recovery agent’s examination ............................................................... 50

Bail and recovery agent’s examination .......................................................................................... 50

Fees are paid by producers. Retaliation occurs as each fee is paid.

Non-Resident Retaliatory Fees:

§ 27-1-20-12(a)

Effective May 12, 2017, various retaliatory fees for non-resident license applications and renewals were

added or updated since a prior update on Aug. 10, 2016. The states where retaliatory fees were added

include: District of Columbia, Georgia, Hawaii, Mississippi, Missouri, Nevada, New Hampshire,

Oklahoma, Pennsylvania, Rhode Island, and Wyoming. States that have had one or more retaliatory fee

updated include: California, Connecticut, Massachusetts, and New Jersey. All retaliatory fees for Illinois

have remained the same. A list of retaliatory fees may be viewed at www.in.gov/idoi/2600.htm.

ALABAMA:

For new/initial license applications for Alabama residents, the following fees apply:

Independent adjuster—individual ................................................................................................ 110

Independent adjuster—organization ............................................................................................ 230

Portable electronics—individual or organization ........................................................................ 100

Producer—organization ............................................................................................................... 130

Self-storage insurance—organization .......................................................................................... 130

Surplus lines—individual............................................................................................................. 230

Surplus lines—organization ......................................................................................................... 530

Travel insurance—organization ................................................................................................... 130

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

ALABAMA (cont.)

For license renewals for Alabama residents, the following fees apply:

Independent adjuster—organization .......................................................................................... $200

Portable electronics—individual or organization ........................................................................ 100

Producer—organization ............................................................................................................... 100

Self-storage insurance—organization .......................................................................................... 100

Surplus lines—individual............................................................................................................. 200

Surplus lines—organization ......................................................................................................... 500

Travel insurance—organization ................................................................................................... 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—organization ............................................................................................ 400

Portable electronics—individual or organization ........................................................................ 400

Producer—organization ............................................................................................................... 400

Self-storage insurance—organization .......................................................................................... 400

Travel insurance—organization ................................................................................................... 400

ALASKA:

For new license applications and renewals for Alaska residents, the following fees apply:

Surplus lines—individual or organization ................................................................................... 300

ARIZONA:

For new license applications and renewals for Arizona residents, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 120

Portable electronics—individual or organization ........................................................................ 120

Producer—individual or organization .......................................................................................... 120

Title line of authority (LOA) add-on with another LOA ............................................................. 120

Public adjuster—individual or organization ................................................................................ 120

Self-storage insurance—organization .......................................................................................... 120

Surplus lines—individual or organization ................................................................................... 500

Renewal .................................................................................................................................... 1,000

Travel insurance—individual or organization ............................................................................. 120

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 240

Portable electronics—individual or organization ........................................................................ 480

Producer—individual or organization .......................................................................................... 480

Title LOA add-on with another LOA .......................................................................................... 480

Self-storage insurance—organization .......................................................................................... 480

Travel insurance—individual or organization ............................................................................. 480

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

ARKANSAS:

For new license applications and renewals for Arkansas residents, the following fees apply:

Consultant—individual or organization ..................................................................................... $120

Independent adjuster—individual or organization ....................................................................... 120

Portable electronics—organization ........................................................................................... 1,000

Surplus lines—individual or organization (new application only) ........................................... 1,035

Renewal ....................................................................................................................................... 120

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual or organization ....................................................................................... 480

Independent adjuster—individual or organization ....................................................................... 240

Portable electronics—organization ........................................................................................... 4,000

CALIFORNIA:

For new license applications and renewals for California residents, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 311

Producer—individual or organization, per line of authority (LOA) ............................................ 188

Credit LOA, new application ....................................................................................................... 449

Credit LOA, renewal .................................................................................................................... 410

Portable electronics—individual or organization ........................................................................ 321

Public adjuster—individual or organization ................................................................................ 264

Self-storage insurance—organization .......................................................................................... 323

Surplus lines—individual or organization, new application ..................................................... 1,178

Renewal .................................................................................................................................... 1,296

Travel insurance—organization ................................................................................................ 4,540

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 622

Producer—individual or organization, per LOA ......................................................................... 752

Credit LOA ............................................................................................................................... 1,640

Portable electronics—individual or organization ..................................................................... 1,284

Self-storage insurance—organization ....................................................................................... 1,292

Travel insurance—organization .............................................................................................. 18,160

COLORADO:

For new/initial license applications for Colorado residents, the following fees apply:

Public adjuster—individual or organization .................................................................................. 71

Surplus lines—individual or organization ................................................................................... 294

For license renewals for Colorado residents, the following fees apply:

Public adjuster—individual or organization .................................................................................. 50

Surplus lines—individual or organization ................................................................................... 284

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

CONNECTICUT:

For new/initial license applications for Connecticut residents, the following fees apply:

Consultant—individual or organization ..................................................................................... $300

Independent adjuster—individual or organization ....................................................................... 130

Portable electronics—individual .................................................................................................. 140

Portable electronics – organization .............................................................................................. 600

Producer—individual ................................................................................................................... 140

Producer—organization ............................................................................................................... 130

Public adjuster—individual or organization ................................................................................ 300

Surplus lines—individual or organization ................................................................................... 675

Travel insurance—individual or organization ............................................................................. 130

For license renewals for Connecticut residents, the following fees apply:

Consultant—individual ................................................................................................................ 250

Consultant—organization ............................................................................................................ 300

Independent adjuster—individual ................................................................................................ 130

Independent adjuster—organization .............................................................................................. 90

Portable electronics—individual .................................................................................................. 160

Portable electronics – organization .............................................................................................. 450

Producer—individual or organization .......................................................................................... 160

Public adjuster—individual ......................................................................................................... 300

Public adjuster—organization ...................................................................................................... 250

Surplus lines—individual or organization ................................................................................... 625

Travel insurance—individual or organization ............................................................................. 160

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual ............................................................................................................. 1,000

Consultant—organization ......................................................................................................... 1,200

Independent adjuster—individual ................................................................................................ 260

Independent adjuster—organization ............................................................................................ 180

Portable electronics—individual .................................................................................................. 640

Portable electronics – organization ............................................................................................ 1800

Producer—individual or organization .......................................................................................... 640

Travel insurance—individual or organization ............................................................................. 640

DELAWARE:

For new license applications and renewals for Delaware residents, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 100

Portable electronics—organization, new application ................................................................ 1,000

Portable electronics—organization, renewal ............................................................................... 500

Producer—individual or organization, per major-lines and limited-lines grouping levels .......... 100

Public adjuster—individual or organization ................................................................................ 100

Surplus lines—individual or organization, new application ........................................................ 250

Surplus lines—individual or organization, renewal ..................................................................... 200

Travel insurance—individual or organization ............................................................................. 100

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

DELAWARE (cont.)

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual or organization ..................................................................... $200

Portable electronics—organization ........................................................................................... 2,000

Producer—individual or organization, per major-lines and limited-lines grouping levels .......... 400

Travel insurance—individual or organization ............................................................................. 400

DISTRICT OF COLUMBIA:

For new license applications and renewals for DC residents, the following fees apply:

Portable electronics—individual or organization ........................................................................ 100

Producer—individual or organization ......................................................................................... 100

**Fee charged per life/health, property/casualty and limited-line grouping levels

Public adjuster—individual or organization ................................................................................ 100

Surplus lines—individual or organization ................................................................................... 200

Travel insurance—individual or organization ............................................................................. 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—individual or organization ........................................................................ 400

Producer—individual or organization .......................................................................................... 400

**Fee charged per life/health, property/casualty and limited-line grouping levels

Travel insurance—individual or organization ............................................................................. 400

GEORGIA:

For new license applications and renewals for Georgia residents, the following fees apply:

Independent adjuster—individual, per line of authority (LOA) .................................................. 100

Portable electronics—organization .............................................................................................. 120

Producer—individual, per LOA plus $20 license fee for new applications................................. 100

Renewal, at license level, plus $100 if variable life & annuity LOA added ................................ 105

Producer—organization ............................................................................................................... 120

Public adjuster—individual ......................................................................................................... 100

Self-storage insurance—organization .......................................................................................... 120

Surplus lines—individual or organization ................................................................................... 620

Renewal ....................................................................................................................................... 600

Travel insurance—individual or organization ............................................................................. 120

Individual renewal ....................................................................................................................... 105

For licenses reinstate 31-365 days after license expiration, the following fees apply:

Independent adjuster – individual, per LOA ............................................................................... 200

Portable electronics – organization .............................................................................................. 480

Producer – individual ................................................................................................................... 420

Plus $400 id variable life & annuity LOA included with another LOA

Producer – organization ............................................................................................................... 480

Self-storage insurance – organization ......................................................................................... 480

Travel Insurance – individual ..................................................................................................... 420

Travel Insurance – organization .................................................................................................. 480

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

HAWAII:

For new license applications for Hawaii residents, the following fees apply:

Producer—individual or organization, per line of authority (LOA) .......................................... $225

Surplus lines—individual or organization ................................................................................... 240

Travel insurance—individual or organization ............................................................................. 225

For license renewals for Hawaii residents, the following fees apply:

Producer—individual or organization, per LOA ......................................................................... 150

Surplus lines—individual or organization ................................................................................... 120

Travel insurance—individual or organization ............................................................................. 150

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Producer—individual or organization, per LOA ......................................................................... 600

Travel insurance—individual or organization ............................................................................. 600

ILLINOIS:

For new license applications and renewals for Illinois residents, the following fees apply:

Portable electronics—individual .................................................................................................. 380

Portable electronics—organization .............................................................................................. 150

Producer—individual ................................................................................................................... 380

Producer—organization ............................................................................................................... 150

Public adjuster—individual or organization ................................................................................ 250

Surplus lines—individual or organization ................................................................................... 400

Travel insurance—individual or organization ............................................................................. 500

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—individual ............................................................................................... 1,520

Portable electronics—organization .............................................................................................. 600

Producer—individual ................................................................................................................ 1,520

Producer—organization ............................................................................................................... 600

Travel insurance—individual or organization .......................................................................... 2,000

KENTUCKY:

For new/initial license applications for Kentucky residents, the following fees apply:

Portable electronics—organization .............................................................................................. 100

Producer—individual, per line of authority (LOA) plus $50 license fee ....................................... 50

Producer—organization, per LOA plus $120 license fee ............................................................ 120

Self-storage insurance—organization .......................................................................................... 120

Travel insurance—individual ....................................................................................................... 100

Travel insurance—organization ................................................................................................... 240

Note: Retaliatory fees do not apply to Kentucky renewals and reinstatements.

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

LOUISIANA:

For new/initial license applications for Louisiana residents, the following fees apply:

Portable electronics—organization ............................................................................................ $200

Public adjuster—individual or organization .................................................................................. 55

Surplus lines—individual or organization ................................................................................... 250

For license renewals for Louisiana residents, the following fees apply:

Independent adjuster—organization ............................................................................................ 100

Portable electronics—organization .............................................................................................. 100

Public adjuster—individual ........................................................................................................... 50

Public adjuster—organization ...................................................................................................... 350

Surplus lines—individual or organization ................................................................................... 350

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—organization ............................................................................................ 200

Portable electronics—organization .............................................................................................. 400

MAINE:

For new/initial license applications for Maine residents, the following fees apply:

Portable electronics—organization ........................................................................................... 1,000

Surplus lines—individual............................................................................................................. 165

For license renewals for Maine residents, the following fees apply:

Portable electronics—organization .............................................................................................. 500

Surplus lines—individual............................................................................................................. 120

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization ........................................................................................... 2,000

MARYLAND:

For new license applications and renewals for Maryland residents, the following fees apply:

Surplus lines—individual or organization ................................................................................... 200

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

MASSACHUSETTS:

For new license applications and renewals for Massachusetts residents, the following fees apply:

Portable electronics—individual ................................................................................................ $150

Portable electronics—organization ........................................................................................... 1,000

Renewal ....................................................................................................................................... 500

Producer—individual or organization .......................................................................................... 225

Property/casualty/personal lines surcharge fee .............................................................................. 75

Public adjuster—individual or organization ................................................................................ 200

Surplus lines—individual or organization ................................................................................... 150

Travel insurance—individual ....................................................................................................... 225

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—individual .................................................................................................. 600

Portable electronics—organization ........................................................................................... 2,000

Producer—individual or organization .......................................................................................... 900

Property/casualty/personal lines surcharge fee ............................................................................ 300

Travel insurance—individual ....................................................................................................... 900

MINNESOTA:

For new license applications and renewals for Minnesota residents, the following fees apply:

Independent adjuster—individual, per line of authority (LOA) plus $75 license fee .................... 50

Portable electronics—organization .............................................................................................. 125

Producer—individual, per LOA plus $75 license fee .................................................................... 50

Producer—organization ............................................................................................................... 200

Surplus lines—individual............................................................................................................. 500

Travel insurance—individual ....................................................................................................... 125

Travel insurance—organization ................................................................................................... 225

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual, per line of authority (LOA) plus $150 license fee ................ 100

Portable electronics—organization .............................................................................................. 500

Producer—individual, per LOA plus $300 license fee ................................................................ 200

Producer—organization ............................................................................................................... 900

Travel insurance—individual ....................................................................................................... 500

Travel insurance—organization ................................................................................................... 900

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

MISSISSIPPI:

For new license applications and renewals for Mississippi residents, the following fees apply:

Independent adjuster—individual .............................................................................................. $100

Independent adjuster—organization ............................................................................................ 400

Portable electronics—organization ........................................................................................... 5,000

Producer—individual, per major-lines, limited-lines and credit grouping levels ........................ 100

Producer—organization, per major-lines, limited-lines and credit grouping levels .................... 200

Public adjuster—individual ......................................................................................................... 100

Public adjuster—organization ...................................................................................................... 400

Self-storage insurance—organization .......................................................................................... 200

Surplus lines—organization ......................................................................................................... 200

Travel insurance—individual ....................................................................................................... 100

Travel insurance—organization ................................................................................................... 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual ................................................................................................ 200

Independent adjuster—organization ............................................................................................ 800

Portable electronics—organization ......................................................................................... 20,000

Producer—individual, per major-lines, limited-lines and credit grouping levels ........................ 400

Producer—organization, per major-lines, limited-lines and credit grouping levels .................... 800

Self-storage insurance—organization .......................................................................................... 800

Travel insurance—individual ....................................................................................................... 400

Travel insurance—organization ................................................................................................... 800

MISSOURI:

For new license applications and renewals for Missouri residents, the following fees apply:

Portable electronics—organization .............................................................................................. 100

Producer—individual or organization, per line of authority (LOA) ............................................ 100

Funeral director LOA ..................................................................................................................... 90

Public adjuster—individual or organization ................................................................................ 100

Renewal ......................................................................................................................................... 50

Travel insurance—individual or organization ............................................................................. 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 400

Producer—individual or organization, per LOA ......................................................................... 400

Funeral director LOA ................................................................................................................... 360

Travel insurance—individual or organization ............................................................................. 400

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

MONTANA:

For new license applications for Montana residents, the following fees apply:

Consultant—individual ................................................................................................................ $90

Independent adjuster—individual .................................................................................................. 90

Portable electronics—organization .............................................................................................. 100

Producer—individual or organization .......................................................................................... 100

Public adjuster—individual ........................................................................................................... 50

Travel insurance—individual or organization ............................................................................. 100

For license renewals for Montana residents, the following fees apply:

Consultant—individual ................................................................................................................ 100

Independent adjuster—individual ................................................................................................ 100

Portable electronics—organization .............................................................................................. 100

Producer—individual or organization .......................................................................................... 100

Public adjuster—individual ......................................................................................................... 100

Travel insurance—individual or organization ............................................................................. 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual ................................................................................................................ 400

Independent adjuster—individual ................................................................................................ 200

Portable electronics—organization .............................................................................................. 400

Producer—individual or organization .......................................................................................... 400

Travel insurance—individual or organization ............................................................................. 400

NEBRASKA:

For new license applications and renewals for Nebraska residents, the following fees apply:

Surplus lines—individual or organization ................................................................................... 250

NEVADA:

For new license applications and renewals for Nevada residents, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 185

Portable electronics—individual or organization ........................................................................ 185

Producer—individual or organization .......................................................................................... 185

Public adjuster—individual or organization ................................................................................ 185

Self-storage insurance—organization .......................................................................................... 185

Surplus lines—individual or organization ................................................................................... 185

Travel insurance—individual or organization ............................................................................. 185

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual or organization ....................................................................... 370

Portable electronics—individual or organization ........................................................................ 740

Producer—individual or organization .......................................................................................... 740

Self-storage insurance—organization .......................................................................................... 740

Travel insurance—individual or organization ............................................................................. 740

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

NEW HAMPSHIRE:

For new/initial license applications for New Hampshire residents, the following fees apply:

Portable electronics—organization ......................................................................................... $1,000

Producer—individual or organization .......................................................................................... 210

Public adjuster—individual or organization .................................................................................. 75

Surplus lines—individual or organization ................................................................................... 210

Travel insurance—individual or organization ............................................................................. 210

For license renewals for New Hampshire residents, the following fees apply:

Portable electronics—organization ........................................................................................... 1,000

Producer—individual or organization .......................................................................................... 150

Public adjuster—individual or organization .................................................................................. 75

Surplus lines—individual or organization ................................................................................... 150

Travel insurance—individual or organization ............................................................................. 150

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization ........................................................................................... 4,000

Producer—individual or organization .......................................................................................... 600

Travel insurance—individual or organization ............................................................................. 600

NEW JERSEY:

For new/initial license applications for New Jersey residents, the following fees apply:

Portable electronics—organization .............................................................................................. 120

Producer—individual or organization, major-lines grouping level ............................................. 170

Producer—individual or organization, limited-lines grouping level ............................................. 95

Public adjuster—individual or organization .................................................................................. 70

Surplus lines—individual or organization ................................................................................... 170

Travel insurance—individual or organization ............................................................................... 95

For license renewals for New Jersey residents, the following fees apply:

Portable electronics—organization .............................................................................................. 100

Producer—individual or organization, major-lines grouping level ............................................. 150

Producer—individual or organization, limited-lines grouping level ............................................. 90

Public adjuster—individual or organization .................................................................................. 70

Surplus lines—individual or organization ................................................................................... 150

Travel insurance—individual or organization ............................................................................... 90

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 400

Producer—individual or organization, major-lines grouping level ............................................. 600

Producer—individual or organization, limited-lines grouping level ........................................... 360

Travel insurance—individual or organization ............................................................................. 360

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

NEW MEXICO:

For new/initial license applications for New Mexico residents, the following fees apply:

Note: Retaliatory fees do not apply to new license applications, but to renewals/reinstatements only.

Consultant—individual ................................................................................................................ $90

Public adjuster—individual ........................................................................................................... 50

Surplus lines—individual or organization ................................................................................... 120

For license renewals for New Mexico residents, the following fees apply:

Consultant—individual ................................................................................................................ 100

Public adjuster—individual ........................................................................................................... 60

Surplus lines—individual or organization ................................................................................... 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual ................................................................................................................ 400

NEW YORK:

For new license applications and renewals for New York residents, the following fees apply:

Independent adjuster—individual ................................................................................................ 100

Public adjuster—individual ......................................................................................................... 100

Surplus lines—individual or organization ................................................................................... 400

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual ................................................................................................ 200

NORTH CAROLINA:

For new/initial license applications for North Carolina residents, the following fees apply:

Independent adjuster—individual ................................................................................................ 169

Independent adjuster—organization ............................................................................................ 169

Portable electronics—organization .............................................................................................. 144

Producer—individual, per line of authority (LOA) plus $44 license fee ....................................... 50

Credit or title LOA ......................................................................................................................... 94

Producer—organization ............................................................................................................... 144

Public adjuster—individual ......................................................................................................... 169

Public adjuster—organization ...................................................................................................... 144

Self-storage insurance—organization .......................................................................................... 144

Surplus lines—organization ......................................................................................................... 144

Travel insurance—individual ......................................................................................................... 94

Travel insurance—organization ................................................................................................... 144

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

NORTH CAROLINA (cont.)

For license renewals for North Carolina residents, the following fees apply:

Independent adjuster—individual .............................................................................................. $109

Independent adjuster—organization ............................................................................................ 134

Portable electronics—organization .............................................................................................. 134

Producer—individual ..................................................................................................................... 90

Producer—organization ............................................................................................................... 134

Public adjuster—individual ......................................................................................................... 109

Public adjuster—organization ...................................................................................................... 134

Self-storage insurance—organization .......................................................................................... 134

Surplus lines—organization ......................................................................................................... 134

Travel insurance—individual ......................................................................................................... 90

Travel insurance—organization ................................................................................................... 134

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual ................................................................................................ 218

Independent adjuster—organization ............................................................................................ 268

Portable electronics—organization .............................................................................................. 536

Producer—individual ................................................................................................................... 360

Producer—organization ............................................................................................................... 536

Self-storage insurance—organization .......................................................................................... 536

Travel insurance—individual ....................................................................................................... 360

Travel insurance—organization ................................................................................................... 536

NORTH DAKOTA:

For new/initial license applications for North Dakota residents, the following fees apply:

Portable electronics—individual or organization ........................................................................ 100

Producer—individual or organization .......................................................................................... 100

Public adjuster—individual ......................................................................................................... 100

Public adjuster—organization ...................................................................................................... 150

Self-storage insurance—organization .......................................................................................... 100

Travel insurance—individual or organization ............................................................................. 100

For license renewals for North Dakota residents, the following fees apply:

Note: Retaliatory fee applies to public adjuster organization only.

Portable electronics—individual or organization .......................................................................... 90

Producer—individual or organization ............................................................................................ 90

Public adjuster—individual ........................................................................................................... 50

Public adjuster—organization ...................................................................................................... 150

Self-storage insurance—organization ............................................................................................ 90

Travel insurance—individual or organization ............................................................................... 90

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

OHIO:

For new license applications and renewals for Ohio residents, the following fees apply:

Portable electronics—organization ............................................................................................ $100

Public adjuster—individual or organization ................................................................................ 100

Renewal ......................................................................................................................................... 50

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 400

OKLAHOMA:

For new license applications and renewals for Oklahoma residents, the following fees apply:

Consultant—individual or organization ....................................................................................... 100

Portable electronics—individual or organization ........................................................................ 100

Producer—individual or organization .......................................................................................... 100

**Fee charged per major-lines, limited-lines, variable life & annuity and title grouping levels

Travel insurance—individual or organization ............................................................................. 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual or organization ....................................................................................... 400

Portable electronics—individual or organization ........................................................................ 400

Producer—individual or organization .......................................................................................... 400

**Fee charged per major-lines, limited-lines, variable life & annuity and title grouping levels

Travel insurance—individual or organization ............................................................................. 400

OREGON:

For new license applications and renewals for Oregon residents, the following fees apply:

Portable electronics—organization .............................................................................................. 200

Self-storage insurance—organization .......................................................................................... 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 800

Self-storage insurance—organization .......................................................................................... 800

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

PENNSYLVANIA:

For new license applications and renewals for Pennsylvania residents, the following fees apply:

Portable electronics—individual or organization ...................................................................... $110

Producer—individual or organization .......................................................................................... 110

Public adjuster—individual or organization ................................................................................ 200

Self-storage insurance—organization .......................................................................................... 110

Surplus lines—individual or organization ................................................................................... 200

Travel insurance—individual or organization ............................................................................. 400

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—individual or organization ........................................................................ 440

Producer—individual or organization .......................................................................................... 440

**Fee charged per major-lines, limited-lines and title grouping levels

Self-storage insurance—organization .......................................................................................... 440

Travel insurance—individual or organization .......................................................................... 1,600

RHODE ISLAND:

For new license applications and renewals for Rhode Island residents, the following fees apply:

Independent adjuster—individual ................................................................................................ 250

Independent adjuster—organization ............................................................................................ 150

Portable electronics—organization .............................................................................................. 200

Producer—individual or organization .......................................................................................... 130

Public adjuster—individual ......................................................................................................... 250

Public adjuster—organization ...................................................................................................... 150

Travel insurance—individual or organization ............................................................................. 130

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual ................................................................................................ 500

Independent adjuster—organization ............................................................................................ 300

Portable electronics—organization .............................................................................................. 800

Producer—individual or organization .......................................................................................... 520

**Add additional $520 if Title LOA is included with one or more other LOAs

Travel insurance—individual or organization ............................................................................. 520

SOUTH CAROLINA:

For new applications and renewals for South Carolina residents, the following fees apply:

Portable electronics—organization ........................................................................................... 1,000

Renewal ....................................................................................................................................... 500

Surplus lines—individual............................................................................................................. 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization ........................................................................................... 2,000

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

TENNESSEE:

For new license applications and renewals for Tennessee residents, the following fees apply:

Portable electronics—organization ............................................................................................ $100

Public adjuster—individual or organization ................................................................................ 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 400

VERMONT:

For new/initial license applications for Vermont residents, the following fees apply:

Consultant—individual ................................................................................................................ 230

Independent adjuster—individual or organization ....................................................................... 150

Portable electronics—organization .............................................................................................. 180

Producer—individual, per major-lines, limited-lines and title grouping levels ........................... 120

Producer—organization, major-lines grouping level ................................................................... 120

Producer—organization, limited-lines grouping level ................................................................. 180

Public adjuster—individual or organization ................................................................................ 230

Self-storage insurance—organization .......................................................................................... 180

Surplus lines—individual or organization ................................................................................... 430

Travel insurance—individual ....................................................................................................... 120

Travel insurance—organization ................................................................................................... 180

For license renewals for Vermont residents, the following fees apply:

Consultant—individual ................................................................................................................ 200

Independent adjuster—individual or organization ....................................................................... 120

Portable electronics—organization .............................................................................................. 150

Producer—individual, per major-lines, limited-lines and title grouping levels ............................. 90

Producer—organization, major-lines grouping level ..................................................................... 90

Producer—organization, limited-lines grouping level ................................................................. 150

Public adjuster—individual or organization ................................................................................ 200

Self-storage insurance—organization .......................................................................................... 150

Surplus lines—individual or organization ................................................................................... 400

Travel insurance—individual ......................................................................................................... 90

Travel insurance—organization ................................................................................................... 150

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Consultant—individual ................................................................................................................ 800

Independent adjuster—individual or organization ....................................................................... 240

Portable electronics—organization .............................................................................................. 600

Producer—individual, per major-lines, limited-lines and title grouping levels ........................... 360

Producer—organization, major-lines grouping level ................................................................... 360

Producer—organization, limited-lines grouping level ................................................................. 600

Self-storage insurance—organization .......................................................................................... 600

Travel insurance—individual ....................................................................................................... 360

Travel insurance—organization ................................................................................................... 600

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

VIRGINIA:

For new license applications and renewals for Virginia residents, the following fees apply:

Public adjuster—individual or organization ................................................................................ $50

WASHINGTON:

For new license applications and renewals for Washington residents, the following fees apply:

Portable electronics—organization .............................................................................................. 500

Renewal ....................................................................................................................................... 250

Surplus lines—individual............................................................................................................. 205

Renewal ....................................................................................................................................... 200

Surplus lines—organization ......................................................................................................... 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization ........................................................................................... 1,000

WEST VIRGINIA:

For new license applications and renewals for West Virginia residents, the following fees apply:

Portable electronics—organization .............................................................................................. 200

Producer—organization ............................................................................................................... 200

Self-storage insurance—organization .......................................................................................... 200

Surplus lines—individual or organization ................................................................................... 200

Travel insurance—organization ................................................................................................... 200

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Portable electronics—organization .............................................................................................. 800

Producer—organization ............................................................................................................... 800

Self-storage insurance—organization .......................................................................................... 800

Travel insurance—organization ................................................................................................... 800

WISCONSIN:

For new/initial license applications for Wisconsin residents, the following fees apply:

Producer—individual, per line of authority (LOA) if more than one LOA ................................... 75

Producer—organization ............................................................................................................... 100

Travel insurance—organization ................................................................................................... 100

Note: Retaliatory fees do not apply to Wisconsin renewals and reinstatements.

Retaliation—December 2023

Non-Resident Retaliatory Fees (cont.)

§ 27-1-20-12(a) (cont.)

WYOMING:

For new license applications and renewals for Wyoming residents, the following fees apply:

Independent adjuster—individual .............................................................................................. $100

Renewal ....................................................................................................................................... 150

Portable electronics—organization .............................................................................................. 100

Producer—individual or organization .......................................................................................... 150

**Fee charged per life/health, property/casualty, credit, and limited-lines grouping levels

Producer—organization, limited-line crop, funeral director, or title ........................................... 100

Surplus lines—individual............................................................................................................. 100

Travel insurance—organization ................................................................................................... 100

For licenses reinstated 31–365 days after license expiration, the following fees apply:

Independent adjuster—individual ................................................................................................ 300

Portable electronics—organization .............................................................................................. 400

Producer—individual or organization .......................................................................................... 600

**Fee charged per life/health, property/casualty, credit, and limited-lines grouping levels

Producer—organization, limited-line crop, funeral director, or title ........................................... 400

Travel insurance—organization ................................................................................................... 400

DEPOSITS

§ 27-1-6-14 Domestic Stock Insurers

Deposit 25% of paid in capital requirement if organized before July 1, 1977.

Deposit 10% of paid in capital requirement if organized after June 30, 1977.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

§ 27-1-6-15 Domestic Mutual Insurers (Does not apply to farm mutuals)

Deposit $25,000 if organized before June 30, 1955.

Deposit $50,000 if organized after June 29, 1955, but before Mar. 7, 1967.

Deposit $100,000 if organized after Mar. 6, 1967.

§ 27-1-12-11 Life Insurers

Deposit the lesser of the reserve value or $1 million when added to deposits required under other

sections.

§ 27-7-3-7 Title Insurers

$50,000 deposit

Retaliation—December 2023

Deposits (cont.)

§ 27-10-3-15 Foreign and Domestic Insurers Licensed for Bail Bonds

$75,000 deposit in cash

§ 27-13-13-1 Foreign and Domestic HMOs

$500,000 deposit in cash or U.S. obligations

§ 27-13-34-17 Foreign and Domestic LSHMOs

$50,000 deposit in cash or U.S. obligations

Foreign insurers may present a certificate indicating that the company maintains a like deposit, excluding

bail, in the state of domicile. Any questions should be directed to the company deposits representative for

the department of insurance.

→ CONTACT PERSON

Premium Tax and Insurer Annual Fees

Debra Graves: (317) 232-1993; dgraves@idoi.in.gov

Company Admissions and Other Entity Licensing

Connie Wright: (317) 232-1994; cowright1@idoi.in.gov

Corporate Amendments

Annette Gunter: (317) 232-2428; agunter@idoi.in.gov

Agents Licensing

Steve Embree: (317) 234-5883; sembree@idoi.in.gov

Company Deposits

→ Nasya Burkeen (317) 232-2383; nburkeen@odoi.in.gov

Company Compliance

Alexandria Peck: (317) 233-9607; apeck@idoi.in.gov

Second Injury Fund and Residual Asbestos Fund and Worker’s Compensation

Darren Dye: (317) 233-3384; ddye@wcb.in.gov

Indiana Department of Labor, Deputy Commissioner of Labor, INSafe

Kenneth R. Boucher II: kboucher@dol.in.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

IOWA

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Iowa Code §§ 515.24; 432.1; Iowa Admin. Code (IAC) 191-5.40 to 191-5.41

Gross premiums, assessments and fees for direct insurance without including or deducting any

amount paid for reinsurance (except for companies reinsuring risks from county mutuals described

in § 518.18) and deducting dividends, returned premiums and consideration received for ocean

marine insurance. Life insurance premiums received from policies issued in connection with a

qualified retirement plan are not included in gross premiums. Considerations received for annuities

are excluded.

§ 432.1; IAC 191-5.41

Life insurers may also deduct returned premiums.

[Note: Please see the Surplus Lines chart for further information.]

Tax Rate:

→ §§ 432.1; 432.2; 514B.31

1% for life insurers, health maintenance organizations and health service corporations for calendar

year 21006-2023

0.975% for life insurers, health maintenance organizations and health service corporations for

calendar year 2024

0.95% for life insurers, health maintenance organizations and health service corporations for

calendar year 2025

0.925% for life insurers, health maintenance organizations and health service corporations for

calendar year 2026

0.9% for life insurers, health maintenance organizations and health service corporations for

calendar year 2027 and subsequent calendar year

HMOs are subject to premium tax after five years of existence.

1% for other than life for calendar years 206-2023

0.975% for calendar year 2024

0.95% for calendar year 2025

0.925% for calendar year 2026

0.9% for calendar year 2027 and subsequent calendar year

Retaliation—December 2023

Tax Rate (cont.)

→ §§ 518.18; 518A.35

1% for county/state mutual for calendar years 2006-2023

0.975% for calendar year 2024

0.95% for calendar year 2025

0.925% for calendar year 2026

0.9% for calendar year 2027 and subsequent calendar year

Provided, however, that when risks for windstorm or hail are reinsured, the reinsurer shall pay

applicable premium tax instead.

→ §§ 432.5; 515E.4

1% for risk retention groups for calendar years 2006-2023

0.975% for calendar year 2024

0.95% for calendar year 2025

0.925% for calendar year 2026

0.9% for calendar year 2027 and subsequent calendar year

→ § 520.19

1% for reciprocal or interinsurance contracts for calendar years 2006-2023

0.975% for calendar year 2024

0.95% for calendar year 2025

0.925% for calendar year 2026

0.9% for calendar year 2027 and subsequent calendar year

→ § 432.1A – Captive insurance companies

0.35% premium tax on the first $20 million of direct premiums

0.25% premium tax on direct premiums exceeding $20 million

0.20% premium tax on the first $20 million of assumed reinsurance premiums

0.125% premium tax on subsequent $20 million of assumed reinsurance premiums

5% premium tax on assumed reinsurance premiums exceeding the first $40 million of premiums

Other Taxes and Assessments:

§§ 432A.1; 432A.6 Marine Insurance Taxation

Pay tax of 6.5% of average taxable underwriting profit for past three years.

§ 85.65 Second Injury Fund

In case of compensable injury causing death, insurer which provided compensation shall pay

$12,000 (if dependents) or $45,000 (if no dependents) into fund.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 514E.2 Comprehensive Health Insurance Association

HMOs and insurers providing health insurance shall be assessed for the losses of the pool.

§ 519A.5 Medical Malpractice Joint Underwriting Association

Insurers writing liability insurance may be assessed for any deficit of the JUA.

§ 515B.5 Property and Casualty Guaranty Association

Assess member insurers based on net direct written premiums no more than 2% of premiums for

prior year. May assess $50 per year for administrative expenses, which shall be credited against

insolvency assessment.

§§ 508C.9; 508C.19 Life and Health Guaranty Association

Additional administrative expenses plus assessment for insolvency shall be on basis of premiums

received on average business for last three years for types of insurance in the account with the

insolvency. Maximum of 2% per year.

Exclusions and Deductions:

§ 432.1 Fraternals

Fraternal benefit societies are exempt from premium tax.

§ 514B.31

Excludes payments to HMOs under contracts with Secretary of Health and Human Services

pursuant to § 1833 or § 1876 of the Federal Social Security Act, § 4015 of OBRA 1987 or Iowa

Code Chapter 249A for enrolled members. Excludes HMOs from the provision of § 432.1 for the

first five years of existence.

State of Kansas, ex rel. Todd v. United States of America, 995 F.2d 1505 (10th Cir. 1993).

Based on court decision, Iowa no longer collects premium tax on federally reinsured crop insurance

premiums.

Credits:

§ 15.333A Investment Credit

Provides certain premium tax credits as an economic development incentive for qualifying insurers.

The program is administered by the Iowa Department of Economic Development.

Retaliation—December 2023

Credits (cont.)

§§ 404A.1; 432.12A; IAC 223-48.1 to 223-48.16 Property Rehabilitation Tax Credit

Provides certain historic property rehabilitation tax credits upon obtaining a tax credit certificate

from the department of cultural affairs.

§ 514E.2 Comprehensive Health Insurance Association

May offset assessments paid up to the amount of 20% of the premium taxes due per year for each

of the five years following the year in which the assessment was paid.

§ 508C.19 Life and Health Guaranty Association

May offset assessment made on account of insolvency at a rate of 20% of the amount of the

assessment for each of five calendar years following the year in which the assessment was paid.

Attach a copy of the offset schedule to the premium tax return.

§ 15E.52 Innovation Fund Investment Tax Credit

May take a credit for investments in an innovation fund.

→ §§ 432.12N; 15E.364 Hoover Presidential Library Tax Credit

For tax years beginning on or after January 1, 2021, but before January 1, 2025, a tax credit shall

be allowed against the taxes imposed in chapter 432, equal to 25% of a person 's donation to the

Hoover presidential foundation for the Hoover presidential library and museum renovation project

fund.

Payment Due Dates:

§ 432A.8 Marine Insurance

Marine insurance return due on or before June 1.

§ 432.1

Application for renewal of certificate of authority and premium tax return form, and payments due

on or before Mar. 1.

Each insurance company and association transacting business in this state whose Iowa premium

tax liability for the preceding calendar year was $1000 or more shall remit on or before June 1, on

a prepayment basis an amount equal to one-half of the premium tax liability for the preceding

calendar year.

In addition to the June 1 prepayment amount noted above each insurance company or association

that is subject to tax shall remit on or before Aug. 15, on a prepayment basis, an additional amount

equal to one-half of the premium tax liability for the preceding calendar year.

Retaliation—December 2023

Penalties:

§ 432.1

Commissioner may suspend or revoke license of company or association that fails to pay its

premium tax on or before due date.

Extensions:

No specific provision in statutes.

Retaliatory Law:

§ 505.14

If the taxes, fees, fines, penalties, licenses, deposits, or other obligations imposed on Iowa insurers

or agents are, in the aggregate, in excess of the taxes, fees, fines, or other obligations that Iowa

imposes on insurers of other states, retaliation will occur.

FEES

Most fees are aggregated on the premium tax return. Retaliation is on an item-by-item basis for the agents’

appointment fees. A retaliatory fee is charged where Iowa does not charge a fee.

Insurers’ Fees:

§§ 511.24; 511.27; 512B.33; 514.2A; 514B.3; 515.147; IAC 191-1.7(505)

Certificate of authority:

Application for certificate of authority (including filing of financial statements) ....................... $50

Certificate of authority (new or renewal) ....................................................................................... 50

Amended articles of incorporation ................................................................................................. 50

Amended certificate of authority ................................................................................................... 25

Annual statement:

Annual statement filing .............................................................................................. Included above

Miscellaneous services:

Affixing official seal to any document .......................................................................................... 10

Service of process .......................................................................................................................... 50

§§ 512B.3; 512B.24; 512B.25

Fraternals:

Certificate of authority (new or renewal) ....................................................................................... 50

Annual statement filing .................................................................................................................. 50

Retaliation—December 2023

Insurers’ Fees (cont.)

IAC 191-10.26; 191-10.15

Agents’ appointment:

The fee for an appointment or the renewal of an appointment is $5 for each producer appointed to

a domestic company. The fee for appointment or renewal for each producer appointed to a foreign

company is the fee charged by the state of domicile.

Producer Licensing Fees:

§ 522B; IAC 191-10.26; 191-10.51

Agent’s license:

Triennial ....................................................................................................................................... $50

Reinstatement of license in addition to the above ........................................................................ 100

Limited license, triennial ............................................................................................................... 50

Paid by individual or company.

DEPOSITS

§ 515.71

Iowa has no deposit requirement for foreign life or property casualty insurers. A U.S. branch

licensed under Ch. 515 must comply with § 515.71.

CONTACT PERSON

Premium and retaliatory taxes

(515) 654-6480; Premium.Tax@iid.iowa.gov

Agents’ licensing, property, casualty, and surplus lines

(515) 654-6565; Producer.Licensing@iid.iowa.gov

Insurers’ fees

(515) 654-6480; Company.Licensing@iid.iowa.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

KANSAS

→ Arrow indicates an update for 2023

PREMIUM TAX

The annual tax filing is due on or before March 1. The Kansas Insurance Department requires companies

to complete online tax forms and submit payment through “Company Desktop,”

https://towerii.ksinsurance.org/kid/signon.do

Premium Tax Base:

Kan. Stat. Ann. §§ 40-252; 40-1211

Gross premiums minus returned premiums, dividends returned to policyholders, reinsurance

premiums received from any other company authorized to do business in Kansas and premiums

received in connection with funding a qualified retirement plan. Annuity considerations are not

subject to tax.

Tax Rate:

§ 40-252

2% insurers, nonprofit hospital, medical, dental, optometric and pharmacy service corporations

§ 40-3213

5.77% of premiums for HMO

§§ 40-4103; 40-246c; 40-252

6% risk retention groups chartered outside of Kansas, and excess lines companies.

2% domestic risk retention groups

Other Taxes and Assessments:

§ 75-1508 State Fire Marshal’s Tax

For maintaining the department of the state’s fire marshal, a tax totaling no more than 0.80% of

premiums may be assessed on all fire business transacted in the state. For maintaining the

emergency medical services board, a tax totaling no more than 0.25% of premiums may be assessed

on all fire business transacted in the state. For maintaining the fire service training program, a tax

totaling no more than 0.20% of premiums may be assessed on all fire business transacted in the

state. The current assessment is 1.25%. This is in addition to the premium tax.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 40-1703 Firefighters Relief Fund

2% of total premiums on fire and lightning insurance. Due April 1. This is in addition to regular

premium tax. Insurers are allowed a tax credit for this payment. (See the credit section for additional

information.)

§ 40-112 Insurance Department Regulation Fund

The insurance commissioner shall assess groups of affiliated insurers based on the company assets

from the previous calendar year. The minimum group assessment is $500. The maximum amount

that can be assessed is the lesser of 0.00015% of total assets or $25,000. The law also permits the

commissioner to establish a lower minimum to be assessed equally on each insurer. There was no

regulation fee fund assessment for fiscal year 2022, and none is expected for 2023. If it is

determined that an assessment will occur, billing statements will go out in Sept., with a Nov. 1 due

date.

→ § 44-566a Workers’ Compensation Second-Injury Fund (Kansas Insurance Department)

All insurers writing compensation insurance may be assessed to support administrative and claim

payments required of the workers’ compensation fund, in addition to the premium tax. The Kansas

Insurance Department Workers’ Compensation assessment rate is generally determined in May of

each year and the payments are due July 1. For fiscal year 2023, the assessment was 0.75% of the

company’s prior year paid losses. For fiscal year 2024, the assessment is 0% of the company’s prior

year paid losses. There was no assessment.

→ §§ 74-712; 74-713 Workers’ Compensation Administration Fund (Administered by the Kansas

Department of Labor)

Assess insurers writing compensation insurance for expenses of administration of the Kansas

Department of Labor. The maximum assessment is 3% of the benefits paid during the preceding

calendar year. For calendar year 2023, the assessment was 2.75% of the company’s prior year paid

losses. The assessment for calendar year 2024 will be determined in March 2024. Contact

department for assessment.

§§ 65-6211; 65-6213 Health Care Access Improvement Fund

Each HMO with a Medicaid managed care contract will be assessed 5.9% of non-medicare

premiums collected by the HMO. The department will send a notice of assessment to each HMO

after Dec. 31 and before Mar. 31 of the succeeding year.

§ 40-2906 Property and Casualty Guaranty Association

May assess member insurers no more than 2% net direct written premium for preceding year

subsequent to insolvency.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 40-3009 Life and Health Guaranty Association

May assess member insurers for administrative expenses non-pro rata no more than $300, or pro

rata and credited against future assessments on account of insolvency. May not assess more than

2% average premiums for last three years for types of insurance in account with deficiency.

§ 40-2121 Kansas Health Insurance Association

Assess member insurers for losses in proportion to their share of total health insurance premiums

received in state during the year. (This assessment ended in 2019.)

§ 40-252b Preemption

No political subdivision shall levy any license, privilege, premium or gross receipts tax or fee upon

any company subject to premium tax. This does not prohibit property taxes or municipal occupation

taxes levied on a basis other than income, premiums or gross receipts.

Exclusions and Deductions:

§ 40-252 Fraternal Benefit Societies

No premium taxes for fraternal benefit societies.

§ 40-2247 Small Employees Group Plan

No premium taxes shall be due on a health benefit plan established under this law.

State of Kansas, ex rel. Todd v. United States of America, 995 F.2d 1505 (10th Cir. 1993).

Based on court decision, Kansas will no longer collect premium tax on federally reinsured crop

insurance premiums.

Credits:

§ 40-252 State Fire Marshal Tax Credit

Insurers writing fire insurance may claim a credit against their premium tax liability for taxes levied

for the state’s fire marshal. The credit is determined by a formula set forth in § 40-252. The

calculation of the credit for foreign insurers allows an applicable percentage to be claimed each

year. Foreign insurers get the entire credit starting in 2007.

§ 40-252 Firefighters Relief Fund Tax Credit

Insurers are authorized to claim a credit against their premium tax liability. The credit is determined

by a formula set forth in the statute. The calculation of the credit for foreign insurers allows an

applicable percentage to be claimed each year. Foreign insurers get the entire credit starting in

2007.

Retaliation—December 2023

Credits (cont.)

§ 40-112 Insurance Department Regulation Fund Tax Credit

If any other state retaliates against Kansas domestic insurers because the insurance department

service fee imposed by Kansas law is greater than that state’s fee or the other state has no

comparable fee, Kansas domestic insurers (this credit is not available to companies organized

outside of Kansas) may claim a dollar-for-dollar credit for the retaliatory fee against the Kansas

premium taxes. The credit may not exceed 90% of the insurer’s annual premium tax due the State

of Kansas.

§§ 74-8205; 74-8304; 74-8401 Local Seed Capital Pools and Venture Capital Companies Tax Credit

Allow a portion of investment in certified local seed capital pools and venture capital companies

as a credit against the premium tax. The credit shall be applied only against such taxpayer’s

corporate income tax liability.

§§ 79-32,194 to 79-32,199b Community Services Program Act Tax Credit

A credit against the premium tax shall be allowed for a portion of the amount contributed to

specified community service programs. This credit is not available to health maintenance

organizations. (See https://www.ksrevenue.gov/prtaxcredits-community.html for additional

information.)

§ 40-252e Small Business Credit

This credit is available to companies that write premiums of less than $15 million annually. This

credit is not available to health maintenance organizations.

§ 40-252d Employee Salary Credit

15% of total salaries that companies pay to Kansas employees can be used towards a credit against

premium tax liability. The credit is capped based on whether the company is an affiliate, as is

further defined in the statute. This credit is not available to health maintenance organizations.

§§ 74-50,114; 74-50,132; 79-32,153; 79-32,154; 79-32,160a; 40-252f Business and Job Development

(See also “Qualified Business Facilities Credit” on page KS-6.)

Allows a credit if there is a hiring of a certain number of employees as a direct result of investments

in a qualified business facility. Effective for all taxable years beginning after Dec. 31, 2010, no

business and job development credit computed under the Job Expansion and Investment Act of

1976, or the Kansas Enterprise Zone Act shall be allowed for those taxpayers that have made an

investment and placed that investment into service for Dec. 31, 2010. Remaining credits that have

been earned under § 79-32,160a may be carried forward to succeeding tax years as long as all

requirements are met. See https://www.ksrevenue.gov/prtaxcredits-busjob.html for additional

information. This credit is not available to health maintenance organizations.

Retaliation—December 2023

Credits (cont.)

§ 40-2813 Disabled Access Credit

The disabled credit is available to taxpayers who make their property accessible to the disabled.

The property must be an existing building, facility or equipment located in Kansas and used in a

trade or business held for the production of income. See https://www.ksrevenue.gov/prtaxcredits-

disabled.html for additional information. This credit is not available to health maintenance

organizations.

§ 79-32,211 Historical Preservation Credit

The credit is available to a qualified taxpayer that makes qualified expenditures to restore or

preserve a qualified historic structure according to a qualified rehabilitation plan. This credit is not

available to health maintenance organizations. See https://www.ksrevenue.gov/prtaxcredits-

historic.html for additional information and for Kansas Department of Revenue Schedule K-35.

§ 40-2121 Kansas Health Insurance Association Credit

Due to the implementation of the Affordable Care Act and its guarantee issue requirements, the

Kansas Health Insurance Association (KHIA) had been in runoff mode because no one is eligible

for the coverage. The runoff has been completed and the remaining money in the pool was returned.

This credit is no longer available.

§ 40-3016 Kansas Life and Health Insurance Guaranty Association Credit

May offset assessments against premium tax at a rate of 20% a year for five years beginning the

year after assessment paid. This credit is not available to health maintenance organizations.

§ 40-2906a Property and Casualty Guaranty Association Credit

May offset assessment due to insolvency against premium tax at a rate of 20% a year for five years

beginning the year after assessment paid. Assessment must be shown in annual statement as an

asset. This credit is not available to health maintenance organizations.

§ 74-8133 Angel Investment Credit

A credit shall be allowed for a cash investment in the qualified securities of a qualified Kansas

business approved by the Kansas Technology Enterprise Corporation. This credit is not available

to health maintenance organizations. Starting with tax year 2021, the credit shall be up to 50% of

investor’s cash investment in any qualified Kansas business subject to limitations. The balance of

unissued tax credit may be carried over for issuance in future years until tax year 2026. (See

https://www.ksrevenue.org/prtaxcredits-angel.html for additional information.)

§ 74-50,154 Regional Foundation Credit

A credit shall be allowed for contributions to regional foundations designated by the Kansas

Secretary of Commerce. An approved credit application for the foundation for the tax year must

accompany the tax return. This credit is not available to health maintenance organizations. (See

https://www.ksrevenue.gov/prtaxcredits-RegionalFoundation.html for additional information.)

Retaliation—December 2023

Credits (cont.)

§§ 40-252f; 79-32,160a Qualified Business Facilities Credit

Qualifying insurance companies are allowed credits against the premium tax in amounts equal to

such credits allowed under the high-performance incentive program and the business and job

development credits, if certain conditions are met. Credits are allowed until Jan. 1, 2012, or until

exhausted. For projects placed into service on and after Jan. 1, 2021, a taxpayer may transfer up to

50% of the tax credit allowed under subsection (e).

§ 79-32,262 Qualified Capital Investment Credit

The declared disaster capital investment tax credit program has been established for the purpose of

assisting businesses in specific declared disaster areas. An investment credit is provided to any

business that constructs, equips, reconstructs, maintains, repairs, enlarges, or furnishes a business

facility in the designated areas. The capital investment must be made within three years from the

date of the disaster. The tax credit is up to 10% of the capital investment. It is a nonrefundable

credit and can be carried forward for up to 10 years. A taxpayer can claim a maximum of $100,000

in tax credits through this program. The taxpayer may elect to receive a refundable credit in the

amount of 50% of the tax credit earned. Should the taxpayer choose the refundable credit in lieu of

the nonrefundable credit, the remaining portion of the tax credit shall be lost.

→ §§ 79-32,304 to 79-32,309 Kansas Affordable Housing Credit

For all taxable years commencing after December 31, 2022, owners of low-income housing

development projects located in Kansas that qualify for the federal credit under IRC § 42 can claim

a credit against insurance premium tax liability.

→ §§ 79-32,310 to 79-32,315 Housing Investor Credit

For all taxable years commencing after December 31, 2022, taxpayers who invest in qualified

housing projects can claim a credit against insurance premium tax liability.

→ § 79-32,261 College Deferred Maintenance Credit

Any taxpayer who contributes to a community college located in Kansas for capital improvements,

to a technical college for deferred maintenance or the purchase of technology or equipment or to a

postsecondary educational institution located in Kansas for deferred maintenance, shall be allowed

a credit against the tax imposed by the Kansas income tax act, the premium tax or privilege fees

imposed pursuant to K.S.A. 40–252,

→ §§ 74-50,311 to 74-50,324 Attracting Powerful Economic Expansion Credits

Attracting Powerful Economic Expansion (APEX) creating economic development incentives for

qualified firms and suppliers. The incentives packages include insurance premiums tax liability.

Retaliation—December 2023

Credits (cont.)

→ §§ 79-32,298 to 79-32,303 Targeted Employment Business Credit

A business that employs state residents with developmental disabilities may claim an insurance

premium tax liability credit beginning with the 2022 tax year. The credit equals 50% of the hourly

wages paid to disabled residents up to $7.50 each hour. Kansas caps the credit program at $5 million

each tax year. Credits cannot be carried forward. The credit sunsets or expires on January 1, 2028.

Payment Due Dates:

§ 40-252

Prepay 50% of prior year’s premium tax, fire marshal and retaliatory taxes on June 15 and on Dec.

15. Prepayment is based on amount reported on previous year’s original tax return. (Amended

returns will not alter the prepayment calculations.)

NOTE: The billing statement is made available and must be paid through “Company Desktop”.

Penalties:

§ 40-112

Assessments payable under this section shall be past due if not paid to the insurance department

within 45 days of the billing date of such assessment. A penalty equal to 10% of the amount

assessed shall be imposed upon any past due payment and the total amount of the assessment and

penalty shall bear interest at the rate of 1.5% per month or any portion thereof.

Extensions:

§§ 40-252; 40-225

Insurers must file their premium tax returns when filing the annual statement annually on January

1 or within 60 days thereafter. The commissioner is allowed to grant a reasonable extension of this

for premium tax returns and annual statement filings.

K.S.A. 40-2,125

Any return filed after March 1, 2024, will be assessed a late filing penalty of $1,000.

Retaliation—December 2023

Retaliatory Law:

§ 40-253

When other states charge Kansas insurers taxes, fees, fines, penalties, licenses, or compensation for

examination, including taxes or fees based on fire premiums, or require deposits in excess of those

Kansas charges insurers domiciled in other states, retaliation will occur on an aggregate basis. In

the case of merger or redomestication; retaliation is based on other states’ treatment of the surviving

company. Does not apply to special purpose assessments or guaranty association assessments under

the laws of this or any other state. A tax offset or credit for an assessment shall be treated as a tax

paid for purposes of this section.

FEES

Kansas retaliates on an aggregate basis for all taxes and fees. The return includes a separate summary sheet

for comparison of all fees and taxes paid in Kansas and that would have been paid in the state of domicile,

and the total that is higher is paid.

Insurers’ Fees:

§§ 40-252; 40-3213; 40-2,133; 40-4103; 40-4116; 40-218; Department website

Admission fees:

Examination of charter and other documents ............................................................................... $500

Filing annual statement .................................................................................................................. 100

Certificate of authority ..................................................................................................................... 10

Certificate of authority:

Continuation .................................................................................................................................... 10

Annual statement:

Annual statement filing ................................................................................................................. 100

The above fees apply to domestic and foreign capital stock insurers and mutual insurers, reciprocal or

interinsurance exchanges, fraternal benefit societies, nonprofit hospital service corporations, nonprofit

medical service corporations, nonprofit dental service corporations, nonprofit optometric service

corporations and nonprofit pharmacy service corporations.

Domestic capital stock insurance companies and mutual legal reserve life insurance companies:

Filing application for sale of stock or certificates of indebtedness ................................................ 25

HMO fees:

Application for certificate of authority ........................................................................................ 150

Annual report ................................................................................................................................. 50

Amendment to the certificate of authority ..................................................................................... 10

Retaliation—December 2023

Insurers’ Fees (cont.

Miscellaneous services:

Service of process ........................................................................................................................ $25

Notification of appointment of managing general agents’ contract ............................................. 100

Notification by risk retention group ............................................................................................. 250

Notification by purchasing groups ............................................................................................... 250

Appointments:

Resident agent appointment fee (domestic companies) ................................................................... 2

Non-Resident agent appointment fee (foreign companies) .............................................................. 5

Effective July 1, 2021, companies are required to submit all appointment and termination

transactions online through the National Insurance Producer Registry (NIPR) at www.nipr.com.

Producer Licensing Fees:

§ 40-4906; Kan. Admin. Regs. 40-7-19; 40-7-21

Agents and Business Entities (Agency):

Resident agent license application fee ........................................................................................... 30

Resident agent license fingerprinting fee ...................................................................................... 50

Resident agent license renewal fee, biennially ............................................................................... 4

Non-Resident agent license application fee ................................................................................... 80

Non-Resident agent license renewal fee, biennially ...................................................................... 50

Resident business entity license application fee ............................................................................ 30

Resident business entity license renewal fee, biennially ................................................................ 4

Non-Resident business entity license application fee .................................................................... 80

Non-Resident business entity license renewal fee, biennially ....................................................... 50

* Examination

Single line ......................................................................................................................... 57

Two or more lines ............................................................................................................. 64

* These fees are paid for by the examinee directly to the exam vendor.

Effective January 1, 2022, agents and business entities (agencies) will apply for a resident or non-

resident agent or business entity (agency) license online via NIPR. Paper applications will no longer

be accepted by the Department. In addition, effective January 1, 2022, resident and non-resident

agents and business entities (agencies) will be required to biennially renew their licenses online via

NIPR.

§ 40-4203

Prepaid service plans:

Registered individuals ...................................................................................................................... 2

Fee paid by service plan.

Retaliation—December 2023

DEPOSITS

§§ 40-401; 40-402 Domestic or Foreign, Stock or Mutual Life Insurers

Deposit at least $400,000.

§§ 40-901; 40-1102 to 40-1104 Domestic or Foreign Stock Fire or Casualty Insurers

Deposit at least $450,000.

Multiple line insurers deposit at least $900,000.

§§ 40-1103; 40-1104 Domestic or Foreign Title Insurers

Deposit at least $300,000.

§§ 40-1204; 40-1210 Domestic or Foreign Mutual Fire or Casualty Insurers

Deposit at least $450,000.

Multiple line insurers deposit at least $900,000.

§ 40-1001a Domestic Mutual Fire

Deposit at least $50,000.

§ 40-1027 Domestic Mutual Fire and Tornado Insurers

Deposit $150,000.

§ 40-1519 Domestic Mutual Hail Insurers Writing Fire

Deposit at least $50,000.

All deposit requirements are subject to retaliation.

CONTACT PERSON

Charlotte Daubert: (785) 291-3191; charlotte.daubert@ks.gov

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

COMMONWEALTH OF KENTUCKY

→ Arrow indicates an update for 2023

PREMIUM TAX

Premium Tax Base:

Ky. Rev. Stat. Ann. §§ 136.330 to 136.350

Premiums received, excluding annuities, minus deductions for dividends on accident and health

insurance, including membership or policy dues or fees, less returned premiums. Include

reinsurance on Kentucky risks received from unauthorized companies. Foreign mutual companies

other than life may deduct dividends paid. Workers’ compensation premiums taxed separately.

Tax Rate:

§§ 136.320; 136.330 to 136.350; 136.390

2% all insurers except life.

1.5% foreign and domestic life insurers.

§ 304.45-080

Risk retention groups and insurers providing liability insurance to purchasing groups are taxed the

same as insurers. Subject to local government premium taxes, premium surcharge and corporation

taxes.

Other Taxes and Assessments:

§ 136.360 Fire Safety Tax

Every stock insurer other than life shall pay 0.75% tax on fire insurance premiums, and portion of

premiums reasonably allocable to insurance against the hazards of fire to defray costs of

administering fire prevention laws.

§ 304.8-190 Examination Expense Fund

Insurers maintaining deposits shall be assessed proportionately for the costs of the executive

director. Minimum charge is $5 per insurer.

§ 304.2-440 Operation of the Department of Insurance

If insufficient funds to operate department, may assess insurers amount not to exceed 0.0235% of

net direct written premium from Kentucky business. There was no assessment for 2023.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§§ 142.301 to 142.363 Health Care Provider Tax

See https://revenue.ky.gov/Business/Health-Care-Provider-Tax/Pages/default.aspx for current rates

2.5% Hospital services

2% Home Health Care Services (additional 5.5% for Intermediate-Care Facility Services for

Intellectual Disabilities)

0% Regional Community Services for Mental Health & Intellectual Disabilities (up to 4%)

0% Psychiatric Residential Treatment Facility Services (up to 5.5%)

5.5% Medicaid Managed Care Organization Services

5.5% Supports for Community Living (SCL) Waiver Services

$3.64 per bed per day Hospital Based Nursing Facilities

$1.82 per bed per day Non-Hospital Based Nursing Facility with 60 or fewer beds (facility must

contain licensed intermediate care facility beds as of Sept. 1, 2005)

$4.12 per bed per day Non-Hospital Based Nursing Facility with total census days greater than

60,000

$12.85 per bed per day Non-Hospital Based Nursing Facility with total census days less than or

equal to 60,000

§ 136.060 Corporation Organization Tax

At the time a stock insurer incorporates, it shall be liable for a tax based on the number of shares

authorized at rate of one cent for each of first 20,000 shares, one-half cent for each share between

20,000 and 200,000 shares and one-fifth cent for each share above 200,000. If amend articles to

authorize more shares, compute tax at same rates.

§§ 136.320; 136.335 Domestic Life Insurers

Domestic life insurers must make an irrevocable election whether to pay premium on same basis

as foreign life insurers or to pay tax on the basis of taxable capital and taxable reserves as calculated

under § 136.320. Companies doing business in Kentucky prior to Jan. 1, 2000, made an election

before that date. Insurers applying for a certificate to do business after Jan. 1, 2000, shall include

the election with the application.

Taxable capital is defined as capital minus taxable reserves. The rate is 0.001%. In addition, life

insurers are taxed on premium receipts at the rate of 1.5%. An insurer may offset the tax liability

on taxable capital against the premium tax.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

§ 299.530 Annual Report on Reinsurance Premiums; Tax on Premiums Paid to Unauthorized Companies

All domestic mutual fire insurance companies with special charters or cooperative and assessment

fire insurance shall pay 2% of premiums paid to any unauthorized company.

§ 304.11-050 Premium Tax on Unauthorized Insurer

Every unauthorized insurer shall pay 2% of gross premiums charged subjects resident, located, or

to be performed in this state.

§ 304.4-030 Domestic Mutual Insurers Reinsurance

Domestic mutuals shall pay a premium tax of 2% on the amount of premiums paid to reinsurers not

authorized to transact business in Kentucky.

→ §§ 68.197; 91A.080 Local Government Premium Tax

Cities or urban-county governments or counties or charter counties or consolidated local

governments may impose license fees or taxes upon insurance companies based on the amount of

premiums collected upon persons or risks located within the corporate limits. Premiums received

on health insurance policies issued to individuals or issued through Kentucky Access are excluded.

See Bulletins 2022-001 and 2023-002 for a more detailed explanation of all exclusions.

If an insurance company has willfully engaged in a pattern of business conduct that fails to properly

collect and remit the fee or tax imposed, the department of insurance may assess the responsible

insurance company an appropriate fee no greater than 10% of the additional license fees or taxes

determined to be owed.

There is a $5 fee for LGPT Annual Reconciliation filing, pursuant to 806 KAR 2:095 § 3(1)(b).

§ 136.392 Premium Surcharge

Every domestic, foreign or alien insure, other than life and health insurers, which is either subject

to or exempted from Kentucky premium taxes as levied pursuant to the provisions of either

§§ 136.340, 136.350, 136.370 or 136.390, shall charge and collect a surcharge of $1.80 upon each

$100 of premium, assessments or other charges, except for those municipal premium taxes, made

for it for insurance coverage provided to its policyholders, on risk located in this state. The

commissioner of revenue has the authority to adjust the surcharge rate.

→ Bulletins 2022-001 and 2023-002 Local Government Premium Tax Rates

The first bulletin contains information on local government premium taxes for July 1, 2022, to

June 30, 2023, and the second bulletin contains information for July 1, 2023, to June 30, 2024.

Retaliation—December 2023

Other Taxes and Assessments (cont.)

→ §§ 342.122; 342.1243; 803 Ky. Admin. Regs. 30:010 Workers’ Compensation Assessment

Insurance carriers shall pay a Special Fund assessment of 6.94% in 2023 on workers’ compensation

premiums for all employers as defined by KRS Chpt. 342.001(25). In addition to the “All

Employers Rate,” insurance carriers shall pay a coal workers’ pneumoconiosis assessment of

0.00% on workers’ compensation premiums received from employers who are engaged in the

severance or processing of coal. All consideration of the calculated cost of coverage shall be

included in the Special Fund assessment base. The assessments imposed shall be in lieu of all other

assessments or taxes on workers’ compensation premiums, and determined independent of the

regulations of any other agency or agencies. These assessments are paid quarterly to the Kentucky

Workers’ Compensation Funding Commission online at https://kwcfc.ky.gov/.

§ 304.17B-021 Kentucky Access Health Insurance Pool

Insurers may be assessed to cover the expenses of the pool. Assessments will be made yearly on

Mar. 31 to cover the prior year’s losses.

§ 304.36-080 Property and Casualty Guaranty Association

Assess member insurers no more than 2% of net direct written premiums to pay expenses of

handling claims of insolvent insurers.

§ 304.42-090 Life and Health Guaranty Association

May assess member insurers pro rata or non-pro rata for administrative expenses. If pro rata, may

provide that it be credited against insolvency assessments. In addition, may assess member insurers

no more than 2% of the member insurer’s average premiums for past 3 years on types of insurance

in account with deficiency.

Exclusions and Deductions:

§ 91A.080 Local Government Premium Tax

Premiums for group health insurance provided for state employees and premiums received for

insuring employers against liability for personal injuries to their employees, or death caused

thereby, under the provisions of the workers’ compensation act are exempt from city and county

taxes.

No license fee or tax imposed shall apply to premiums received on health insurance policies issued

to individuals, policies issued through Kentucky Access, high deductible health plans utilized in

conjunction with a health savings account.

No license fee or tax imposed under this section shall apply to premiums paid to insurers of

municipal bonds, leases or other debt instruments issued by or on behalf of a city, county, charter

county government, urban-county government, consolidated local government, special district,

nonprofit corporation or other political subdivision of the commonwealth.

(cont.)

Retaliation—December 2023

Exclusions and Deductions (cont.)

§ 91A.080 Local Government Premium Tax (cont.)

No license fee or tax imposed under this section shall apply to premiums paid to insurance

companies or surplus lines brokers by nonprofit self-insurance entities whose membership consists

of school districts (effective July 15, 2014).

§§ 132.210; 304.29-241 Fraternal Benefit Societies

Fraternals are exempt from all taxes except on real property and office equipment.

§§ 136.330 to 136.350 State Employees Health Insurance

Contracts of health insurance for state government employees are not subject to a tax on their

premiums.

§ 136.350

The provisions for this statute shall not apply to domestic mutual companies, cooperative or

assessment fire insurance companies.

§ 136.392 Premium Surcharge

Federal government, resident, non-profit educational and charitable institutions that have qualified

for exemption from income taxation under I.R.C. § 501(c)(3) are exempt from the surcharge. The

Commonwealth of Kentucky or any of its agencies, and any city, county, political subdivision or

local government body of the commonwealth are exempt from the surcharge on premiums collected

for coverage of real property only. Resident, non-profit religious institutions are exempt from the

surcharge on premiums collected for real, tangible and intangible property coverage only.

Premiums received for health and accident insurance, reinsurance, title insurance, workers’

compensation, federal insured crop insurance and federal insured flood insurance are exempt from

the premium surcharge.

§ 136.395

Hospital, medical or dental service corporations are exempt from premium tax.

§§ 136.330 to 136.350; Kentucky Tax Alert (Mar. 1996)

The Kentucky Department of Revenue has agreed to exempt the premiums received for federal

crop insurance from insurance premium tax, in accordance with State of Kansas, ex rel Todd v.

United States of America.

The department of revenue has agreed to exempt the premiums received for federal flood insurance

which are the Write-Your-Own (WYO) Flood Insurance and the Direct Written Program from

insurance premium tax.

Retaliation—December 2023

Credits:

§ 304.42-130 Life and Health Guaranty Association

May offset insolvency assessments at rate of 20% for each of the five years beginning the year after

the assessment is paid.

Payment Due Dates:

§ 91A.080 Local Government Premium Taxes

Quarterly returns are due 30 days after the end of each calendar quarter. The annual reconciliation

is due Mar. 31 annually to each city, county, or urban-county government, as well as to the

department of insurance.

§ 136.392 Premium Surcharge

On or before the 20th day of each month, each insurer shall report and remit to the Department of

Revenue, on forms as it may require, all premium surcharge moneys collected by it during its

preceding monthly accounting period less any moneys returned to policyholders as applicable to

the unearned portion of the premium on policies terminated by either the insured or the insurer.

Insurers with an annual liability of less than $1,000 for each of the previous two calendar years

may report and remit to the Department of Revenue all premium surcharge moneys collected on a

calendar year basis on or before Jan. 20 of the following calendar year.

§ 136.372 Declaration of estimated tax

Any company whose tax was $5,000 or more in the previous year shall file a declaration of

estimated tax. The tax due shall be paid in 3 installments, 1/3 on or before June 1, 1/3, on or before

October 1, and the remainder on or before the following March 1. (Effective 7/14/22)

Penalties:

§ 91A.080 Local Government Premium Taxes

Late payments bear interest at rate set by department of revenue. In addition, the local government

may assess a 10% penalty for a tax or fee not paid within 30 days. Willful failure to remit is grounds

for revocation of certificate of authority.

§ 131.180 Late Filing Penalties

Late filed premium tax returns and surcharge reports are subject to a penalty of 2% per month, not

to exceed 20% penalty, plus interest. Payment of less than 75% of the tax due is subject to a penalty

of 2% per month, not to exceed 20% penalty, plus interest.

§ 136.990 Failure to File Return

Shall forfeit $100 for each offense. Commissioner of the department of insurance shall revoke

license.

Retaliation—December 2023

Penalties (cont.)

§ 136.372 Declaration of estimated taxes

All taxes not paid when due may be subject to a penalty of 5% per month, but not more than 25%

penalty shall be assessed on any one report and interest at the tax interest rated from the date the

report is due. (Effective 7/14/22)

Extensions:

No specific provision for extension. It is department policy to consider requests.

Retaliatory Law:

§ 91A.080 Local Government Premium Tax

If any state retaliates against Kentucky companies because of the imposition of city or county taxes,

Kentucky will impose an equal tax on premiums written in this state by insurers domiciled in that

state.

§ 304.3-270

When any other state charges Kentucky insurers or their representatives’ taxes, licenses or other

fees, in the aggregate, and any other fines, penalties, deposit requirements, etc., which are in excess

of those Kentucky charges similar insurers, retaliation will occur. This does not apply to personal

income taxes, nor to ad valorem taxes or real or personal property, nor to special purpose

assessments imposed in connection with insurance other than property insurance. Assessments

made by guaranty associations shall not be considered or used in determining retaliatory taxation

to be imposed upon insurers doing business in Kentucky but organized under the laws of another

state.

FEES

Fees and taxes are aggregated on the premium tax return for purposes of retaliation. Payment of fees is,

however, made to department of insurance rather than being included with the taxes being paid to the

department of revenue. If no fee is listed for a particular procedure, the department collects no fee, nor does

it charge a retaliatory fee.

Retaliation—December 2023

Insurers’ Fees:

806 Ky. Admin. Regs. 4:010

Filing charter documents:

Original charter document, bylaws and records of organization or certified copies

required to be filed .............................................................................................................. $100

Amended charter documents, bylaws, and records of organization or certified

copies required to be filed ....................................................................................................... 50

Certificate of authority:

Issuance of original certificate ..................................................................................................... 500

Amending to add a line .................................................................................................................. 50

Renewal each year ....................................................................................................................... 100

Organization of domestic mutual insurers:

Filing application for solicitation permit and issuance of [such] permit ..................................... 200

Annual statement:

Filing each year ............................................................................................................................ 100

Filing additional or supplemental statement in the same year ..................................................... 100

Advisory organizations:

Application for license ................................................................................................................. 500

Annual renewal ............................................................................................................................ 100

Rate and form filings:

Rate level revision filing in a noncompetitive market or other rate level revision

filings subject to prior approval by the commissioner .......................................................... 100

Credit life or health insurance filing requiring review ................................................................ 100

Other rate and form filings ................................................................................... 5 per rate and form

Insurance premium finance companies:

Application for license ................................................................................................................. 500

Annual renewal ............................................................................................................................ 100

Life settlement:

Individual provider....................................................................................................................... 500

Business entity .......................................................................................................................... 1,500

Retaliation—December 2023

Insurers’ Fees (cont.)

806 Ky. Admin. Regs. 4:010 (cont.)

Miscellaneous services:

Lists:

Property, casualty, personal lines, variable life, variable annuities, life and health:

computer printouts of lists and mailing labels .............................................................. $300

Property, casualty, personal lines, variable life, variable annuities, life and health:

computer printouts in electronic or digital media ........................................................... 265

All other lines ........................................................................................................................ 100

Listing for each ZIP code ........................................................................................................ 50

Appointment activity of a specific agent ................................................................................... 5

Adjusters, consultants, managing general agents, solicitors, surplus lines

brokers and third-party administrators .............................................................................. 90

Insurer directories:

All authorized insurers ............................................................................................................ 90

Insurers by line of insurance ................................................................................................... 90

Appointments activity by a specific insurer ............................................................................ 50

Business entity license directory ............................................................................................. 90

Business entity by line of authority ......................................................................................... 90

Appointment activity of a specific business entity .................................................................. 10

Other printouts or magnetic tapes not specified above, if the request is approved

by the commissioner ...................................................... cost to be determined by commissioner

Filing other documents each ..................................................................................... 5 per document

Commissioner’s certificate under seal, other than certificates, licenses, and other

documents provided for above each .......................................................................................... 5

For copies of any document on file with the commissioner, per page ........................................ 0.30

Copy of annual statements per page ................................................................................................ 1

Cost of administering nonprofit hospital corporations:

Membership per contract in force on Dec. 31 of each year, except health insurance

contracts for state employees ...................................................................................................... 0.10

Appointments:

Resident agents, biennially, per insurer ......................................................................................... 40

Nonresident agents, biennially, per insurer .................................................................................... 50

Resident business entity biennially, per insurer ........................................................................... 100

Nonresident business appointments, biennially, per insurer ........................................................ 120

Appointment fee is based on the following, per insurer (when processed at the same time) by

agent’s lines of authority: for life, variable life, variable annuities and health, one fee; property and

casualty, one fee; and all other lines of authority, fee applies to each line of authority.

Retaliation—December 2023

Producer Licensing Fees:

806 Ky. Admin. Regs. 4:010

Agent licenses:

Resident agent, for license ........................................................................................................... $40

Plus for each line of authority an additional fee of.................................................................. 40

Nonresident agent, for license ........................................................................................................ 50

Plus for each line of authority an additional fee of.................................................................. 50

Resident business entity, for license ............................................................................................ 100

Plus for each line of authority an additional fee of................................................................ 100

Nonresident business entity, for license ....................................................................................... 120

Plus for each line of authority an additional fee of................................................................ 120

No renewal fee if have active appointment

Temporary license as agent ............................................................................................................ 20

Surplus lines broker:

Biennial ........................................................................................................................................ 100

Pharmacy benefit manager:

License, annual license renewal .............................................................................................. 1,000

Late renewal penalty .................................................................................................................. 500

Portable electronics insurance retailer:

One to twenty locations in Kentucky ....................................................................... 100 per location

Twenty-one or more locations in Kentucky .............................................................................. 2,500

Managing general agent:

Biennial ........................................................................................................................................ 100

Reinsurance intermediary:

Biennial ........................................................................................................................................ 100

Rental vehicle:

Agent, business entity .................................................................................................................. 100

Location, each location .................................................................................................................. 50

Managing employee, individual ..................................................................................................... 40

Nonresident individual ................................................................................................................... 50

Nonresident business entity ......................................................................................................... 120

Adjuster license:

Biennial .......................................................................................................................................... 50

Temporary license as apprentice adjuster (nonrenewable) ............................................................ 25

Administrator’s license:

Biennial .......................................................................................................................................... 50

Consultant license:

Biennial ........................................................................................................................................ 100

Retaliation—December 2023

Producer Licensing Fees (cont.)

806 Ky. Admin. Regs. 4:010 (cont.)

Life settlement:

Individual broker ........................................................................................................................ $250

Business entity ............................................................................................................................. 750

Examination fee:

Per exam ........................................................................................................................................ 50

Property and casualty is a combined exam when taken at the same time.

Certification:

Certification, clearance letter, duplicate license, etc. ....................................................................... 5

There is no retaliation on agent’s fees. Fee may be paid by individual or company.

DEPOSITS

§ 304.3-140

Insurers must make deposit equal to minimum required capital (stock insurer) or surplus (mutual).

In lieu of a deposit in this state, foreign insurers may present a certificate that they have a deposit

of like kind and quantity maintained in another state.

[Note: Please see the Company Deposit and Capital & Surplus charts for further information.]

§ 304.8-150 Domestic Life Insurers

Total amount deposited must equal policy reserves, but no more than $20 million.

CONTACT PERSON

Department of Revenue

Cheryl Hunt: (502) 564-4810; cheryl.h[email protected]

Department of Insurance

Russ Coy: (502) 564-6082; russell.coy@ky.gov

Rob Roberts: (502) 564-6026; rob.rober[email protected]

John Hord: (502) 782-5349; John.Hord@ky.gov

Workers’ Compensation Funding Commission

Lisa Gilreath-King: (502) 782-1717; lisa[email protected]

Every effort has been made to make this information as correct and complete as possible, but for

specific issues the reader should check the statutes cited. This summary has been prepared by the

NAIC and reviewed by the state’s insurance department and/or tax department for accuracy. All

decisions on legal interpretation are made by state officials, so the reader should contact the above

for further information.

Retaliation—December 2023

Page 1 of 10

COMMONWEALTH OF KENTUCKY

DEPARTMENT OF INSURANCE

FRANKFORT, KENTUCKY

Bulletin 2022-001

TO: All Authorized Insurance Companies and Surplus Lines Brokers Subject

to Kentucky Local Government Premium Taxes

FROM: Sharon P. Clark, Commissioner

RE: 2022-2023 Kentucky Local Government Premium Tax

Updates to Forms and Documents

DATE: 4-13-2022

The following Bulletin is to advise the reader of the current position of the Kentucky Department of

Insurance (the “Department”) on the specified issue. The Bulletin is for informational purposes only and

is not legally binding on either the Department or the reader.

Please review the information in this Bulletin carefully, as it contains information regarding changes to

procedures for adjudicating Local Government Premium Tax (“LGPT”); updates and amendments to

various LGPT forms and documents regarding rates imposed by local governments on collected premium;

as well as the Tax Schedule, Tax Code Descriptions, and Listing of Payees and Addresses documents, in

accordance with KRS 91A.080.

I. Local Government Premium Tax

KRS 91A.080 authorizes local governments to impose and collect license fees or taxes upon

insurance companies for the privilege of engaging in the business of insurance. The license fees or

taxes are based on “premium” as defined in KRS 304.14-030. A “local government” is defined by

KRS 91A.0802(1) as a “city, county, charter county, consolidated local government, urban-county

government, or unified local government.” Newly adopted or amended license fees or taxes become

effective July 1 of each year on a prospective basis only. KRS 91A.080(1) requires the

Commissioner of Insurance to notify each insurance company engaged in the business of insurance

in the Commonwealth of the license fees or taxes no less than 85 days prior to the effective date.

Accordingly, attached are the updated 2022-2023 Kentucky Local Government Premium Tax

Schedule and the 2022-2023 Listing of Payees and Addresses.

Page 2 of 10

Local governments that have adopted or amended their LGPT rates, payees, and addresses since the

publication of Bulletin 2021-001 are indicated with an asterisk (*) on the 2022-2023 Local

Government Premium Tax Schedule. Please also note changes in Tax Codes on the Local

Government Premium Tax Code Descriptions document.

Surplus lines brokers are subject to the payment of LGPT pursuant to KRS 304.10-180(3).

Consequently, surplus lines brokers and insurance companies are obligated to comply with the

provisions of KRS 91A.080. Insurance companies and surplus lines brokers must adopt procedures to

conform to the 2022-2023 Local Government Premium Tax Schedule by July 1, 2022. The 2022-2023

Local Government Premium Tax Schedule applies only to premiums collected July 1, 2022, through

June 30, 2023.

II. Determination of LGPT Liability

To assist insurance companies and surplus lines brokers in determining the location of an insurance risk,

the Department has published the LGPT Risk Location Chart, located on the Department’s website at

http://insurance.ky.gov/ppc/Documents/LGPTRiskLocationChart070212.pdf. Pursuant to KRS

91A.080, taxes are imposed on insurance risks located within the corporate limits of the local

government. An insurance risk may not necessarily be located at the mailing address of the insured. It is

imperative that the insurance company/surplus lines broker identify the specific county and/or city, as

well as physical address/actual risk location, in order to properly assess the LGPT.

ZIP codes shall not be used to determine LGPT.

Pursuant to KRS 91A.0806(6), to assist in identifying the location of an insurance risk, an insurance

company/surplus lines broker shall use a Verified Risk Location system or program during the calendar

year if the total policies issued and renewed by the insurance company/surplus lines broker in Kentucky

in the preceding calendar year is more than two thousand (2,000). An insurance company/surplus lines

broker may avoid penalties associated with the nonpayment of LGPT, provided the insurance

company/surplus lines broker utilizes a Verified Risk Location system and performsdue diligence in the

location of insurance risks in accordance with KRS 91A.0806(4).

The insurance company/surplus lines broker must use the LGPT rate effective on the first day of the

policy term. When an insurance company/surplus lines broker collects a premium as a result of a

change in the policy during the policy term, the LGPT rate used shall be the rate in effect on the

effective date of the policy change. The LGPT rates are to be charged per policy.

III. Disclosure of Local Government Premium Tax

In accordance with KRS 91A.0810 and 806 KAR 2:092, if the LGPT is included in the premium

charged to the policyholder, the insurance company/surplus lines broker shall disclose the amount of

the LGPT charged for the term and the name of the taxing jurisdiction to which the LGPT is due. For

newly issued policies, the disclosure shall be included on the policy, the declarations page(s), or the

initial billing instrument. For renewed or newly endorsed policies, the disclosure shall be included on

the renewal certificate or the billing instrument for each period for which premium or additional

premium is charged to the policyholder. Insurance companies/surplus lines brokers should refer to 806

KAR 2:092 for a complete list of instructions regarding the contents of the disclosure.

Page 3 of 10

Other disclosure provisions include:

(a) Disclosure of LGPT shall not be required if the insurance company does not charge the LGPT

to the policyholder;

(b) If LGPT is owed to multiple taxing jurisdictions, the disclosure shall list separately each taxing

jurisdiction to which LGPT is owed;

result is that no LGPT is owed to the county, the disclosure is not required to include the county

in the itemization of taxing jurisdictions required in 806 KAR 2:092 Section 3; and

(d) If a collection fee is included in the amount charged to the policyholder, the disclosure shall

state that the amount includes the LGPT and a collection fee.

IV. Special Instructions Related to Surplus Lines Business

Pursuant to KRS 304.10-180(3), each surplus lines broker is required to pay the LGPT in accordance

with KRS 91A.080.

As outlined in Section XV of this Bulletin, separate quarterly tax returns shall be submitted to the

applicable local government by the surplus lines broker using Form LGT-141. Each return submitted

to the local government shall include a listing of the insurance companies that supplied the coverage

for which the premiums and LGPT are being reported. This information shall be listed in the

designated section of Form LGT-141. Please note that surplus lines brokers are not required to

submit a separate Form LGT-141 to each local government for every insurance company through

which insurance business was exported. However, it is important to note that the Department

requires a breakdown of premium and LGPT by company and municipality when reporting the

annual reconciliation.

In accordance with Section XVII of this Bulletin, annual reconciliation reports shall be filed with

the Department, as well as with the applicable local government, by the surplus lines broker. Each

return/Form LGT-141 submitted to local governments shall include a listing of the insurance

companies that supplied the coverage for which the premiums and LGPT are being reported. This

information shall be listed in SECTION III of Form LGT-140. Please note that surplus lines brokers

are not required to submit a separate Form LGT-140 to each local government for every insurance

company through which insurance business was exported.

V. Exemptions to LGPT Liability (see KRS 91A.080(10) through (14))

No license fee or LGPT shall apply to premiums collected on the following:

 Policies of group health insurance provided for state employees under KRS 18A.225;

 Health insurance policies issued to individuals;

 Workers’ compensation insurance;

 Annuities;

 Federal flood insurance;

Page 4 of 10

 Municipal bonds, leases or other debt instruments issued by or on behalf of the local

government unless the bonds, leases, or other debt instruments are issued for profit or on

behalf of for-profit or private organizations;

 Policies for high deductible health plans as defined in 26 U.S.C. sec. 223(c)(2), commonly

referred to as health savings accounts;

 Policies of insurance or reinsurance by the Federal Crop Insurance Corporation as defined

in 7 C.F.R. sec. 400.352(b)(2);

 Policies insuring or naming the state or one of its agencies or political subdivisions as an

insured and surety bonds where the state or one of its agencies or political subdivisions is

the obligee. For the purposes of LGPT payments, public school districts are considered

agencies of the state, and policies insuring public school districts, as well as bonds with

public school districts named as the obligee are exempt from LGPT;

 Premiums paid to an insurance company or surplus lines broker by nonprofit self-insurance

groups whose membership consists of cities, counties, charter county governments, urban

county governments, consolidated local governments, unified local governments, school

districts, or any other political subdivisions of the Commonwealth; or

 Policies issued to public service companies that pay ad valorem taxes.

No license fee or LGPT shall apply to policies issued by:

 Entities issued a certificate of authority to do business in Kentucky only as a health

maintenance organization (HMO) pursuant to KRS 304.38-060;

 Entities issued a certificate of authority to do business in Kentucky as a captive insurer

pursuant to KRS 304.49-010;

 Domestic life insurance companies electing to be taxed under the provisions of KRS

136.320

—

Capital and Surplus Tax; or

 Fraternal benefit societies pursuant to KRS 304.29-241.

Additional exemptions may apply pursuant to the ordinance enacted bythe local government. Where

applicable, please refer to the Tax Code for each local government identified on the attached 2022-

2023 Local Government Premium Tax Schedule, and as denoted in the 2022-2023 Tax Code

Descriptions document, for additional information.

Unless otherwise excluded by local government ordinance, a city is not exempt from the payment

of county LGPT.

VI. Indivisible Premium

KRS 91A.080(8) requires a breakdown of all collections by category of insurance listed in the

statute. Therefore, the appropriate premium must be allocated to the various lines of business before

the applicable LGPT is calculated. For indivisible premiums, a weight of two-thirds of the premium

must be given to the fire provision and one-third of the premium to the property and casualty

provisions before determining the LGPT.

Page 5 of 10

VII. LGPT on Life Insurance

The LGPT on life insurance shall be based on the first year’s premiums and applied to the amount

actually collected within the first year.

VIII. Minimum Tax

In some instances, a local government will enact an LGPT percentage, as well as a minimum tax

amount. In these instances, the policyholder may have to pay either the LGPT amount calculated on

the percentage rate, or the minimum tax amount established by the taxing jurisdiction on applicable

lines of business; whichever is greater. The minimum tax is based upon the policy term and

applicable only to new and renewal business on lines of business on which LGPT is imposed, unless

otherwise stipulated in the local government’s ordinance denoted in the 2022-2023 Tax Code

Descriptions document. Minimum tax is collected per policy and paid to the applicable taxing

jurisdiction on a quarterly basis using Form LGT-141.

IX. Flat Fees

Flat fees shall be paid quarterly using Form LGT-141 per insurance company and are not chargeable

to the policyholder.

X. Collection Fees

Pursuant to KRS 91A.080(4) and 806 KAR 2:150, a reasonable collection fee may be charged and

retained by the insurance company or its agent. The collection fee shall not be more than fifteen

percent (15%) of the LGPT collected and remitted to the local government, or two percent (2%) of

the taxable premium, whichever is less. This fee is in addition to the LGPT payable.

If a refund or credit of a LGPT is received by an insurance company/surplus lines broker that passed the

LGPT on to the policyholder, and the amount refunded or credited is not owed to another local

government, the insurance company/surplus lines broker is required to pay to the policyholder the full

amount of the refund or credit, including any collection fee that had been retained. In accordance with

806 KAR 2:150, Section 2(5), a collection fee refunded shall be returned to the policyholder on a pro

rata basis in the same manner that the refund of the LGPT is made.

XI. Appeals for LGPT Refunds, Credits, or Assessments

KRS 91A.0804 provides a sole and exclusive method for the filing of amended returns and requests

or assessments by an insurance company/surplus lines broker, local government, or policyholder for

nonpayment, underpayment, or overpayment of any license fee or LGPT imposed pursuant to KRS

91A.080. The procedures outlined in KRS 91A.0804, which were amended effective July 15, 2018,

must be followed to properly request a refund or assessment related to nonpayment, underpayment

or overpayment of LGPT.

Page 6 of 10

All amended returns, requests for refunds or credits, and assessments shall be made within two years

of the due date of the annual reconciliation (March 31) for the tax period during which the error was

made. However, in the case of fraudulent failure to file a return or the filing of a fraudulent return,

the underpayment may be assessed at any time.

Please note: If a quarterly report/return is amended for a previous tax year, the annual reconciliation

must also be amended.

XII. Unearned Premiums

In accordance with KRS 91A.080(3), when premiumsare returnedto policyholders, asin the instanceof

a policy cancellation, the license fee or LGPT shall be returned by the insurance company/surplus lines

broker to the policyholder pro rata on the unexpired amount of the premium. The license fee or LGPT

shall be returned at the same LGPT rate at which it was collected and shall be taken as a credit by the

insurance company/surplus lines broker on its next quarterly report to the local government. Returned

premiums shall be reported on the annualreconciliationForm LGT-140.Ifthe LGPTrateof the returned

premium is different from the LGPT rate of the quarter in which it was returned, the returned premiums

and therateat which they were returned must be listed asseparate lineitems on the amendedForm LGT-

140.

XIII. Credit for City LGPT Against County LGPT

Tax Code “A”

KRS 91A.080(12) and 806 KAR 2:095 requires insurance companies to credit city license fees or

LGPT against the county license fees or LGPT imposed for the same license fees or LGPT imposed

by the county. This credit only applies if the county ordinance was enacted on or after July 13, 1990.

A credit of the city license fees or LGPT against the county license fees or LGPT must be taken if

all of the following are true:

 The risk is located within the city limits;

 The county in which the city is located also imposes an LGPT;

 The county issued its Ordinance on or after July 13, 1990; and

 The county license fee or LGPT for the applicable line of business (life, health, casualty,

etc.) is higher than the city license fee or LGPT.

If a credit is required, the insurance company must pay the license fee or LGPT due to the city and

pay the balance due to the county.

For quarterly reporting purposes, city LGPT credits against county LGPT should be

submitted to the county using Form LGT-142, along with Form LGT-141 to both the county

and the city.

Page 7 of 10

For July 1, 2022, through June 30, 2023, Tax Code A applies to these cities/counties:

Hopkins County

 City of Dawson Springs (Life Only)

 City of Saint Charles (Life Only)

 City of White Plains (Life Only)

Meade County

 City of Ekron (Except Health & Life)

Pulaski County

 City of Science Hill (Except Health)

Menifee County

 City of Frenchburg (Except Health & Life)

Trimble County

 City of Milton (Except Health)

Henderson County

 City of Robards

Floyd County

 City of Wheelwright (Health Only)

 City of Prestonsburg (Life Only)

Knott County

 City of Hindman (Except Health & Life)

XIV. “Grandfathered” County Taxes

Tax Code “B”

Counties in which LGPT was levied prior to July 13, 1990 are considered to have a

“grandfathered” status. In these areas, LGPT applies to both the incorporated (city) and

unincorporated (county) areas.

If the insured risk is located within the incorporated city boundary, both the city and the county

are owed their respective LGPT amounts, and no credit may be taken. If the risk is located only in

the county, then only county LGPT is owed to the county and no credit is applicable.

LGPT collected within these cities must also be reported quarterly, and separate LGPT

returns must be submitted to the respective counties using form LGT-141.

For July 1, 2022 through June 30, 2023 Tax Code B applies to these cities/counties:

Anderson County

Fulton County

Washington County



City of Lawrenceburg



City of Hickman



City of Springfield

 City of Fulton

Page 8 of 10

XV. Quarterly Payment of LGPT

Inaccordance withKRS91A.080(2) and 806KAR 2:095,license feesor LGPT are due tothe applicable

local government thirty (30) days after the end of each calendar quarter. Each insurance

company/surplus lines broker shall file separately using Form LGT-141 or a substantially similar form.

Please do not send copies of Form LGT-141 to the Department, as they are not required to be filed with

the Department. However, pursuant to 806 KAR 2:070 and KRS 304.10-160, these Forms must be

retained for a minimum period of five years. For more specific information regarding the filing of

quarterly tax returns, please refer to the instructions for filing on Form LGT-141.

Quarterly filings should be submitted to the taxing jurisdiction on Form LGT-141 or a

substantially similar form.

XVI. Penalties

Pursuant to KRS 91A.080(9), any license fee or LGPT not paid on or before the due date shall bear

interest from the date due until paid. The Department of Revenue has set the interest rate on unpaid

or underpaid LGPT for 2022 at five percent (5%). Any interest due is payable to the applicable local

government. In addition, the local government may assess a ten percent (10%) penalty on a license

fee or LGPT not paid within thirty (30) days after the due date.

If, after an audit requested by a local government, the Department finds that an insurance

company/surplus lines broker has willfully engaged in a pattern of business conduct that fails to

properly collect and remit the fee or LGPT imposed by a local government pursuant to the authority

granted by KRS 91A.080(7), the Department may assess the responsible insurance company/surplus

lines broker a penalty fee.

The penalty fee may be no greater than ten percent (10%) of the additional license fees or LGPT

determined to be owed to the local government.

The penalty fee shall be paid to the local government owed the license fee or LGPT, less any

administrative costs of the Department in enforcing KRS 91A.080(7). Any insurance

company/surplus lines broker held responsible for a penalty fee may request a hearing with the

Department. The hearing will be conducted pursuant to KRS 304.2-310 through 304.2-370,

regarding the finding of a willful violation and the subsequent penalty fee.

In accordance with KRS 91A.0806(5), upon the presentation of proof that an insurance company

has complied with the provisions of KRS 91A.0806(4) by performing due diligence in the location

of risks and employing a verified risk location system or an alternative risk location method

authorized by KRS 91A.0806(3), the insurance company:

(a) Shall not be subject to penalties for failure to comply with KRS 91A.080 that may

otherwise be imposed pursuant to KRS Chapter 304 or KRS 91A.080(7) for failure of a risk

location system or program to properly locate risks;

Page 9 of 10

(b) Shall be held harmless from any liability including, but not limited to, liability for

penalties, except for the LGPT that is due and interest on the LGPT that an insurance company

has failed to timely remit, that would otherwise be due solely as a result of a failure to properly

collect and remit the LGPT or fee levied pursuant to KRS 91A.080 because of failure of a risk

location system or program to properly locate risks; and

XVII. Annual Reconciliation

In accordance with KRS 91A.080(8) and 806 KAR 2:095, each insurance company/surplus lines

broker shall, on or before March 31 of each year, file the Local Government Premium Tax Annual

Reconciliation Report to the applicable local government. Form LGT-140 must be submitted by

paper copy to the local government.

If an insurance company/surplus lines broker has not collected premiums for which LGPT applies,

the insurance company/surplus lines broker shall electronically file an annual reconciliation with

the Department indicating the reason that no LGPT was due.

A filing fee of $5.00 per insurance company/surplus lines broker shall be submitted with the annual

reconciliation filing with the electronic filing. The failure to file the annual reconciliation or to remit

the $5.00 filing fee constitutes a violation of 806 KAR 2:095 and could result in administrative

action including, but not limited to a civil penalty of up to $10,000.00 for companies or $1,000.00

for surplus lines brokers, and/or suspension or revocation of all licenses or certificates of authority

held pursuant to KRS 304.3-200; KRS 304.10-130; and KRS 304.99-020.

A. Mandatory Electronic Annual Reconciliation Filing Requirements

The Local Government Premium Tax Annual Reconciliation report shall be submitted to

the Department in an electronic format. The Department no longer accepts paper copy

annual reconciliation reports. Electronic filing for both the online LGT-140 form and

FTP are now filed through the eService Portal.

B. Electronic Filing LGT-140 Form and FTP eService Portal

1. Surplus lines brokers

Access to electronically submit the annual reconciliation pursuant to KRS 91A.080 is

automatically included with existing eService accounts for surplus lines users with

“Individual Access” account types. If a new Kentucky Online Gateway (KOG) account is

required, you may create one at the following link:

https://insurance.ky.gov/doieservices/UserRole.aspx

2. Insurance Companies

Insurance companies will need to establish an eService account for the company by

choosing the “Insurer: Annual Reconciliation” account type, in eService. If a new

Kentucky Online Gateway (KOG) account is required, you may create one at the

following link: https://insurance.ky.gov/doieservices/UserRole.aspx

Page 10 of 10

3. eService Filing Options

a. LGT-140 Form: Select “Submit Data using Form”

b. FTP upload: Select the “Upload Data from file option”. A sample text filing

is no longer required. You will receive an error message if the delimited text

is not uploaded correctly in eService. The delimited text samples may be found

under Annual Reconciliation Electronic Submission at the following link:

https://insurance.ky.gov/ppc/new_docs.aspx?cat=196

C. Local Governments eService Portal

Local governments that wish to view annual reconciliation data and other LGPT summary

reports online may do so through the eService portal. Official personnel from the local

government must first establish an account in eService by emailing a request to:

DOI.MunicipalTaxes@ky.gov. Please include name, official title, and name of local

government, phone number, and address of the local government.

D. Filing the Annual Reconciliation with Local Governments

The annual reconciliation shall be submitted electronically to the Department. However,

insurance companies/surplus lines brokers shall continue to send paper copies of their

annual reconciliation reports using Form LGT-140 to local governments. Filing

electronically with the Department does not constitute compliance with the filing

requirements for local governments. For more specific information regarding the filing of

the annual reconciliation report, please refer to the instructions for filing Form LGT-140.

XVIII. Questions

Questions should be directed to the Local Government Premium Tax Unit.

 Email: DOI.Municipa[email protected]ov

 Phone: 502-564-1649

XIX. 2022-2023 Forms & Documents

1. 2022-2023 Local Government Premium Tax Schedule

2. 2022-2023 Local Government Premium Tax Code Descriptions

3. 2022-2023 Local Government Premium Tax Listing of Payees and Addresses

4. Form LGT-140, Annual Reconciliation

5. Form LGT-141, Quarterly Return & Instructions

6. Form LGT-142, City Credits Against County Taxes & Instructions

Sharon P. Clark, Commissioner

Kentucky Department of Insurance

Page 1 of 11

COMMONWEALTH OF KENTUCKY

DEPARTMENT OF INSURANCE

FRANKFORT, KENTUCKY

Bulletin 2023-002

TO: All Authorized Insurance Companies and Surplus Lines Brokers Subject

to Kentucky Local Government Premium Taxes

FROM: Sharon P. Clark, Commissioner

RE: 2023-2024 Kentucky Local Government Premium Tax

Updates to Forms and Documents

DATE: 4-14-2023

The following Bulletin is to advise the reader of the current position of the Kentucky Department of

Insurance (the

“Department”) on the specified issue. The Bulletin is for informational purposes only and

is not legally binding on either the Department or the reader.

Please review the information in this Bulletin carefully, as it contains information regarding changes to

procedures for adjudicating Local Government Premium Tax (

“LGPT”); updates and amendments to

various LGPT forms and documents regarding rates imposed by local governments on collected premium;

as well as the Tax Schedule, Tax Code Descriptions, and Listing of Payees and Addresses documents, in

accordance with KRS 91A.080.

I. Local Government Premium Tax

KRS 91A.080 authorizes local governments to impose and collect license fees or taxes upon

insurance companies for the privilege of engaging in the business of insurance. The license fees or

taxes are based on

“premium” as defined in KRS 304.14-030. A “local government” is defined by

KRS 91A.0802(2) as a

“city, county, charter county, consolidated local government, urban-county

government, or unified local government.

” Newly adopted or amended license fees or taxes become

effective July 1 of each year on a prospective basis only. KRS 91A.080(1) requires the Commissioner

of Insurance to notify each insurance company engaged in the business of insurance in the

Commonwealth of the license fees or taxes no less than 85 days prior to the effective date.

Accordingly, attached are the updated 2023-2024 Kentucky Local Government Premium Tax

Schedule and the 2023-2024 Listing of Payees and Addresses.

Page 2 of 11

Local governments that have adopted or amended their LGPT rates, payees, and addresses since the

publication of Bulletin 2022-001 are indicated with an asterisk (*) on the 2023-2024 Local

Government Premium Tax Schedule. Please also note changes in Tax Codes on the Local

Government Premium Tax Code Descriptions document.

Surplus lines brokers are subject to the payment of LGPT pursuant to KRS 304.10-180(3).

Consequently, surplus lines brokers and insurance companies are obligated to comply with the

provisions of KRS 91A.080. Insurance companies and surplus lines brokers must adopt procedures to

conform to the 2023-2024 Local Government Premium Tax Schedule by July 1, 2023. The 2023-2024

Local Government Premium Tax Schedule applies only to premiums collected July 1, 2023, through

June 30, 2024.

II. Determination of LGPT Liability

To assist insurance companies and surplus lines brokers in determining the location of an insurance risk,

the Department has published the LGPT Risk Location Chart, located on the Department’s website at

http://insurance.ky.gov/ppc/Documents/LGPTRiskLocationChart070212.pdf

. Pursuant to KRS 91A.080,

taxes are imposed on insurance risks located within the corporate limits of the local government. An

insurance risk may not necessarily be located at the mailing address of the insured. It is imperative that

the insurance company/surplus lines broker identify the specific county and/or city, as well as physical

address/actual risk location, in order to properly assess the LGPT.

ZIP codes shall not be used to determine LGPT.

Pursuant to KRS 91A.0806(6), to assist in identifying the location of an insurance risk, an insurance

company/surplus lines broker shall use a Verified Risk Location system or program during the calendar

year if the total policies issued and renewed by the insurance company/surplus lines broker in Kentucky

in the preceding calendar year is more than two thousand (2,000). An insurance company/surplus lines

broker may avoid penalties associated with the nonpayment of LGPT, provided the insurance

company/surplus lines broker utilizes a Verified Risk Location system and performs due diligence in the

location of insurance risks in accordance with KRS 91A.0806(4).

The insurance company/surplus lines broker must use the LGPT rate effective on the first day of the

policy term. When an insurance company/surplus lines broker collects a premium as a result of a

change in the policy during the policy term, the LGPT rate used shall be the rate in effect on the

effective date of the policy change. The LGPT rates are to be charged per policy.

III. Disclosure of Local Government Premium Tax

In accordance with KRS 91A.0810 and 806 KAR 2:092, if the LGPT is included in the premium charged

to the policyholder, the insurance company/surplus lines broker shall disclose the amount of the LGPT

charged for the term and the name of the taxing jurisdiction to which the LGPT is due. For newly issued

policies, the disclosure shall be included on the policy, the declarations page(s), or the initial billing

instrument. For renewed or newly endorsed policies, the disclosure shall be included on the renewal

certificate or the billing instrument for each period for which premium or additional premium is charged

to the policyholder. Insurance companies/surplus lines brokers should refer to 806 KAR 2:092 for a

complete list of instructions regarding the contents of the disclosure.

Page 3 of 11

Other disclosure provisions include:

(a) Disclosure of LGPT shall not be required if the insurance company does not charge the LGPT to

the policyholder;

(b) If LGPT is owed to multiple taxing jurisdictions, the disclosure shall list separately each taxing

jurisdiction to which LGPT is owed;

result is that no LGPT is owed to the county, the disclosure is not required to include the county

in the itemization of taxing jurisdictions required in 806 KAR 2:092 Section 3; and

(d) If a collection fee is included in the amount charged to the policyholder, the disclosure shall state

that the amount includes the LGPT and a collection fee.

IV. Special Instructions Related to Surplus Lines Business

Pursuant to KRS 304.10-180(3), each surplus lines broker is required to pay the LGPT in accordance

with KRS 91A.080.

As outlined in Section XV of this Bulletin, separate quarterly tax returns shall be submitted to the

applicable local government by the surplus lines broker using Form LGT-141. Each return submitted

to the local government shall include a listing of the insurance companies that supplied the coverage

for which the premiums and LGPT are being reported. This information shall be listed in the

designated section of Form LGT-141. Please note that surplus lines brokers are not required to submit

a separate Form LGT-141 to each local government for every insurance company through which

insurance business was exported. However, it is important to note that the Department requires a

breakdown of premium and LGPT by company and municipality when reporting the annual

reconciliation.

In accordance with Section XVII of this Bulletin, annual reconciliation reports shall be filed with the

Department, as well as with the applicable local government, by the surplus lines broker. Each

return/Form LGT-141 submitted to local governments shall include a listing of the insurance

companies that supplied the coverage for which the premiums and LGPT are being reported. This

information shall be listed in SECTION III of Form LGT-140. Please note that surplus lines brokers

are not required to submit a separate Form LGT-140 to each local government for every insurance

company through which insurance business was exported.

V. Exemptions to LGPT Liability (see KRS 91A.080(10) through (14))

No license fee or LGPT shall apply to premiums collected on the following:

• Policies of group health insurance provided for state employees under KRS 18A.225;

• Health insurance policies issued to individuals;

• Workers

’ compensation insurance;

• Annuities;

• Federal flood insurance;

Page 4 of 11

• Municipal bonds, leases or other debt instruments issued by or on behalf of the local

government unless the bonds, leases, or other debt instruments are issued for profit or on

behalf of for-profit or private organizations;

• Policies for high deductible health plans as defined in 26 U.S.C. sec. 223(c)(2), commonly

referred to as health savings accounts;

• Policies of insurance or reinsurance by the Federal Crop Insurance Corporation as defined in

7 C.F.R. sec. 400.352(b)(2);

• Policies insuring or naming the state or one of its agencies or political subdivisions as an

insured and surety bonds where the state or one of its agencies or political subdivisions is the

obligee. For the purposes of LGPT payments, public school districts are considered agencies

of the state, and policies insuring public school districts, as well as bonds with public school

districts named as the obligee are exempt from LGPT;

• Premiums paid to an insurance company or surplus lines broker by nonprofit self-insurance

groups whose membership consists of cities, counties, charter county governments, urban

county governments, consolidated local governments, unified local governments, school

districts, or any other political subdivisions of the Commonwealth; or

• Policies issued to public service companies that pay ad valorem taxes.

No license fee or LGPT shall apply to policies issued by:

• Entities issued a certificate of authority to do business in Kentucky only as a health

maintenance organization (HMO) pursuant to KRS 304.38-060;

• Entities issued a certificate of authority to do business in Kentucky as a captive insurer

pursuant to KRS 304.49-010;

• Domestic life insurance companies electing to be taxed under the provisions of KRS 136.320

—

Capital and Surplus Tax; or

• Fraternal benefit societies pursuant to KRS 304.29-241.

Additional exemptions may apply pursuant to the ordinance enacted by the local government. Where

applicable, please refer to the Tax Code for each local government identified on the attached 2023-

2024 Local Government Premium Tax Schedule, and as denoted in the 2023-2024 Tax Code

Descriptions document, for additional information.

Unless otherwise excluded by local government ordinance, a city is not exempt from the payment of

county LGPT.

VI. Indivisible Premium

KRS 91A.080(8) requires a breakdown of all collections by category of insurance listed in the statute.

Therefore, the appropriate premium must be allocated to the various lines of business before the

applicable LGPT is calculated. For indivisible premiums, a weight of two-thirds of the premium must

be given to the fire provision and one-third of the premium to the property and casualty provisions

before determining the LGPT.

Page 5 of 11

VII. LGPT on Life Insurance

The LGPT on life insurance shall be based on the first year’s premiums and applied to the amount

actually collected within the first year.

VIII. Minimum Tax

In some instances, a local government will enact an LGPT percentage, as well as a minimum tax

amount. In these instances, the policyholder may have to pay either the LGPT amount calculated on

the percentage rate, or the minimum tax amount established by the taxing jurisdiction on applicable

lines of business; whichever is greater. The minimum tax is based upon the policy term and applicable

only to new and renewal business on lines of business on which LGPT is imposed, unless otherwise

stipulated in the local government

’s ordinance denoted in the 2023-2024 Tax Code Descriptions

document. Minimum tax is collected per policy and paid to the applicable taxing jurisdiction on a

quarterly basis using Form LGT-141.

IX. Flat Fees

Flat fees shall be paid quarterly using Form LGT-141 per insurance company and are not chargeable

to the policyholder.

X. Collection Fees

Pursuant to KRS 91A.080(4) and 806 KAR 2:092, a reasonable collection fee may be charged and

retained by the insurance company or its agent. The collection fee shall not be more than fifteen

percent (15%) of the LGPT collected and remitted to the local government, or two percent (2%) of

the taxable premium, whichever is less. This fee is in addition to the LGPT payable.

If a refund or credit of a LGPT is received by an insurance company/surplus lines broker that passed the

LGPT on to the policyholder, and the amount refunded or credited is not owed to another local

government, the insurance company/surplus lines broker is required to pay to the policyholder the full

amount of the refund or credit, including any collection fee that had been retained. In accordance with 806

KAR 2:150, Section 2(5), a collection fee refunded shall be returned to the policyholder on a pro rata basis

in the same manner that the refund of the LGPT is made.

XI. Appeals for LGPT Refunds, Credits, or Assessments

KRS 91A.0804 provides a sole and exclusive method for the filing of amended returns and requests

or assessments by an insurance company/surplus lines broker, local government, or policyholder for

nonpayment, underpayment, or overpayment of any license fee or LGPT imposed pursuant to KRS

91A.080. The procedures outlined in KRS 91A.0804, which were amended effective July 15, 2018,

must be followed to properly request a refund or assessment related to nonpayment, underpayment

or overpayment of LGPT.

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All amended returns, requests for refunds or credits, and assessments shall be made within two years

of the due date of the annual reconciliation (March 31) for the tax period during which the error was

made. However, in the case of fraudulent failure to file a return or the filing of a fraudulent return,

the underpayment may be assessed at any time.

Please note: If a quarterly report/return is amended for a previous tax year, the annual reconciliation

must also be amended.

XII. Unearned Premiums

In accordance with KRS 91A.080(3), when premiums are returned to policyholders, as in the instance of

a policy cancellation, the license fee or LGPT shall be returned by the insurance company/surplus lines

broker to the policyholder pro rata on the unexpired amount of the premium. The license fee or LGPT

shall be returned at the same LGPT rate at which it was collected and shall be taken as a credit by the

insurance company/surplus lines broker on its next quarterly report to the local government. Returned

premiums shall be reported on the annual reconciliation Form

LGT-140. If the LGPT rate of the returned

premium is different from the LGPT rate of the quarter in which it was returned, the returned premiums

and the rate at which they were returned must be listed as separate line items on the amended Form

LGT-

140.

XIII. Credit for City LGPT Against County LGPT

Tax Code “A”

KRS 91A.080(12) and 806 KAR 2:095 requires insurance companies to credit city license fees or

LGPT against the county license fees or LGPT imposed for the same license fees or LGPT imposed

by the county. This credit only applies if the county ordinance was enacted on or after July 13, 1990.

A credit of the city license fees or LGPT against the county license fees or LGPT must be taken if all

of the following are true:

• The risk is located within the city limits;

• The county in which the city is located also imposes an LGPT;

• The county issued its Ordinance on or after July 13, 1990; and

• The county license fee or LGPT for the applicable line of business (life, health, casualty, etc.)

is higher than the city license fee or LGPT.

If a credit is required, the insurance company must pay the license fee or LGPT due to the city and

pay the balance due to the county.

For quarterly reporting purposes, city LGPT credits against county LGPT should be submitted

to the county using Form LGT-142, along with Form LGT-141 to both the county and the city.

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For July 1, 2023, through June 30, 2024, Tax Code A applies to these cities/counties:

Hopkins County

• City of Dawson Springs (Life Only)

• City of Saint Charles (Life Only)

• City of White Plains (Life Only)

Meade County

• City of Ekron (Except Health & Life)

Pulaski County

• City of Science Hill (Except Health)

Menifee County

• City of Frenchburg (Except Health & Life)

Trimble County

• City of Milton (Except Health)

Henderson County

• City of Robards

Floyd County

• City of Wheelwright (Health Only)

• City of Prestonsburg (Life Only)

Knott County

• City of Hindman (Except Health & Life)

Powell County

• Clay City (Life Only)

XIV. “Grandfathered” County Taxes

Tax Code “B”

Counties in which LGPT was levied prior to July 13, 1990 are considered to have a

“grandfathered” status. In these areas, LGPT applies to both the incorporated (city) and

unincorporated (county) areas.

If the insured risk is located within the incorporated city boundary, both the city and the county

are owed their respective LGPT amounts, and no credit may be taken. If the risk is located only in

the county, then only county LGPT is owed to the county and no credit is applicable.

LGPT collected within these cities must also be reported quarterly, and separate LGPT

returns must be submitted to the respective counties using form LGT-141.

For July 1, 2023 through June 30, 2024 Tax Code B applies to these cities/counties:

Anderson County

Fulton County

Washington County

• City of Lawrenceburg

• City of Hickman

• City of Springfield

• City of Fulton

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XV. Quarterly Payment of LGPT

In accordance with KRS 91A.080(2) and 806 KAR 2:095, license fees or LGPT are due to the applicable

local government thirty (30) days after the end of each calendar quarter. Each insurance

company/surplus lines broker shall file separately using Form

LGT-141 or a substantially similar form.

Please do not send copies of Form

LGT-141 to the Department, as they are not required to be filed with

the Department. However, pursuant to 806 KAR 2:070 and KRS 304.10-160, these Forms must be

retained for a minimum period of five years. For more specific information regarding the filing of

quarterly tax returns, please refer to the instructions for filing on Form

LGT-141.

Quarterly filings should be submitted to the taxing jurisdiction on Form LGT-141 or a

substantially similar form.

XVI. P

enalties

Pursuant to KRS 91A.080(9), any license fee or LGPT not paid on or before the due date shall bear

interest from the date due until paid. The Department of Revenue has set the interest rate on unpaid

or underpaid LGPT for 2023 at eight percent (8%). Any interest due is payable to the applicable

local government. In addition, the local government may assess a ten percent (10%) penalty on a

license fee or LGPT not paid within thirty (30) days after the due date.