00CS FOR SENATE BILL NO. 359(L&C)                                                                                       
01 "An Act relating to insurance premium taxes and to insurance taxes, licenses,                                           
02 fees, fines, penalties, deposit requirements, obligations, prohibitions, and restrictions                               
03 imposed on certain health care insurers; and providing for an effective date."                                          
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  AS 21.09.210(b) is amended to read:                                                                  
06  (b)  Each insurer, and each formerly authorized insurer with respect to                                               
07 premiums received while an authorized insurer in this state, shall pay a tax on the total                               
08 direct premium income received during the year ending on the preceding December 31                                      
09 and paid for the insurance of property or risks resident or located in the state, other                                 
10 than wet marine and transportation insurance, after deducting from the total direct                                     
11 premium income the applicable cancellations, returned premiums, the unabsorbed                                          
12 portion of any deposit premium, all policy dividends, unabsorbed premiums refunded                                      
13 to policyholders, refunds, savings, savings coupons, and other similar returns paid or                                  
14 credited to policyholders with respect to their policies.   Deductions  [NO                                           

01 DEDUCTIONS] may  not  be made of cash surrender value of policies.  Considerations                                    
02 received on annuity contracts are not included in the direct premium income and are                                     
03 not subject to tax.  The tax shall be paid to the director at least annually but not more                               
04 often than once each quarter on the dates specified by the director.  The method of                                     
05 payment must be by the electronic or other payment method specified by the director.                                    
06  Except as provided under (n) of this section, the  [THE] tax is computed at the rate                                 
07 of                                                                                                                      
08   (1)  for domestic and foreign insurers, except hospital and medical                                                  
09 service corporations, 2.7 percent;                                                                                      
10   (2)  for hospital and medical service corporations, six percent of their                                             
11 gross premiums less claims paid.                                                                                        
12    * Sec. 2.  AS 21.09.210 is amended by adding a new subsection to read:                                             
13  (n)  The tax imposed under this section shall be computed at the rate of                                              
14   (1)  one-tenth of a percent for a policy of life insurance with a policy                                             
15 year premium that equals or exceeds $100,000; and                                                                       
16   (2)  2.7 percent for a policy of life insurance with a policy year                                                   
17 premium below $100,000.                                                                                                 
18    * Sec. 3.  AS 21.09.270(b) is amended to read:                                                                     
19  (b)  This section does not apply to                                                                                   
20    (1)   personal income taxes, or to ad valorem taxes on real or personal                                           
21 property or to special purpose obligations or assessments imposed by another state in                                   
22 connection with particular kinds of insurance other than property insurance; except that                                
23 deductions from premium taxes or other taxes otherwise payable allowed on accounts                                      
24 of real estate or personal property taxes paid shall be taken into consideration by the                                 
25 director in determining the propriety and extent of retaliatory action under this section ;                            
26 or                                                                                                                      
27   (2)  a health care insurer who issues health care insurance to the                                                   
28 state, a municipality, a city or borough school district, a regional educational                                        
29 attendance area, the University of Alaska, or a community college operated by the                                       
30 University of Alaska; in this paragraph, "health care insurer" has the meaning                                          
31 given in AS 21.54.500 .                                                                                                

01    * Sec. 4.  This Act takes effect immediately under AS 01.10.070(c).