CSHB 490(FIN): "An Act relating to insurance premium taxes and to insurance taxes, licenses, or fees imposed by another state or country; and providing for an effective date."
00CS FOR HOUSE BILL NO. 490(FIN) 01 "An Act relating to insurance premium taxes and to insurance taxes, licenses, or 02 fees imposed by another state or country; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.38.025(b) is amended to read: 05 (b) A judgment creditor or other claimant of an insurer may not levy upon any 06 of the assets or securities held in this state as a deposit for the protection of the 07 insurer's policyholders or policyholders and creditors. [DEPOSITS UNDER 08 AS 21.09.270 MAY BE LEVIED UPON IF PROVIDED IN THE ORDER OF THE 09 DIRECTOR OF INSURANCE, DEPARTMENT OF COMMERCE AND ECONOMIC 10 DEVELOPMENT, UNDER WHICH THE DEPOSIT IS MADE.] 11 * Sec. 2. AS 21.09.210(b) is amended to read: 12 (b) Each insurer, and each formerly authorized insurer with respect to 13 premiums received while an authorized insurer in this state, shall pay a tax on the total 14 direct premium income received during the year ending on the preceding December 31
01 and paid for the insurance of property or risks resident or located in the state, other 02 than wet marine and transportation insurance, after deducting from the total direct 03 premium income the applicable cancellations, returned premiums, the unabsorbed 04 portion of any deposit premium, all policy dividends, unabsorbed premiums refunded 05 to policyholders, refunds, savings, savings coupons, and other similar returns paid or 06 credited to policyholders with respect to their policies. Deductions [NO 07 DEDUCTIONS] may not be made of cash surrender value of policies. Considerations 08 received on annuity contracts are not included in the direct premium income and are 09 not subject to tax. The tax shall be paid to the director at least annually but not more 10 often than once each quarter on the dates specified by the director. The method of 11 payment must be by the electronic or other payment method specified by the director. 12 Except as provided under (n) of this section, the [THE] tax is computed at the rate 13 of 14 (1) for domestic and foreign insurers, except hospital and medical 15 service corporations, 2.7 percent; 16 (2) for hospital and medical service corporations, six percent of their 17 gross premiums less claims paid. 18 * Sec. 3. AS 21.09.210 is amended by adding a new subsection to read: 19 (n) The tax imposed under this section shall be computed at the rate of 20 (1) one-tenth of a percent for a policy of life insurance with a policy 21 year premium that equals or exceeds $100,000; and 22 (2) 2.7 percent for a policy of life insurance with a policy year 23 premium below $100,000. 24 * Sec. 4. AS 21.24.020 is amended to read: 25 Sec. 21.24.020. Purpose of deposit. The deposits shall be held for purposes 26 as follows: 27 (1) deposits made in this state under AS 21.09.090 shall be held for the 28 purpose stated in that section; 29 (2) a deposit made in this state by a domestic insurer transacting 30 insurance in another state, province, or country, in accordance with the laws of the 31 other state, province, or country, shall be held for the protection of all creditors or for
01 the other purpose or purposes that may be specified under those laws [; 02 (3) DEPOSITS REQUIRED UNDER AS 21.09.270 SHALL BE HELD 03 FOR THE PURPOSES REQUIRED BY THE RETALIATORY LAW, AND 04 SPECIFIED IN THE DIRECTOR'S ORDER REQUIRING THE DEPOSIT TO BE 05 MADE]. 06 * Sec. 5. AS 21.24.130(a) is amended to read: 07 (a) Each deposit made in this state by an insurer under this title, including 08 assets and securities held in another state under custodial arrangements permitted by 09 AS 21.24.040(c), shall be held for as long as there is any outstanding liability of the 10 insurer as to which the deposit was required. [EACH DEPOSIT REQUIRED UNDER 11 AS 21.09.270 SHALL BE HELD FOR SO LONG AS THE BASIS OF THE 12 RETALIATION EXISTS.] 13 * Sec. 6. AS 21.09.270 and AS 21.24.030(c) are repealed. 14 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).