HB1378 (2008) Detail

Relative to insurance taxes and fees.


CHAPTER 154

HB 1378 – FINAL VERSION

06Feb2008… 0226h

2008 SESSION

08-2393

01/04

HOUSE BILL 1378

AN ACT relative to insurance taxes and fees.

SPONSORS: Rep. Spratt, Hills 3; Rep. DeStefano, Merr 13

COMMITTEE: Commerce

ANALYSIS

This bill establishes penalties for certain insureds who fail to file reports or remit the proper tax within the specified time period.

This bill is a request of the insurance department.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06Feb2008… 0226h

08-2393

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to insurance taxes and fees.

Be it Enacted by the Senate and House of Representatives in General Court convened:

154:1 Insurance Department; Electronic Funds Transfer. Amend RSA 400-A:32-b to read as follows:

400-A:32-b Electronic Funds Transfer. Insurers shall remit taxes by electronic funds transfer according to the following schedule:

I. When the insurer[, or group of insurers,] had a tax liability in the prior tax year of $40,000 or more, effective January 1, 2006.

II. When the insurer[, or group of insurers,] had a tax liability in the prior tax year of $30,000 or more, effective January 1, 2007.

III. When the insurer[, or group of insurers,] had a tax liability in the prior tax year of $20,000 or more, effective January 1, 2008.

154:2 Foreign Insurance Companies; Penalty Added. Amend RSA 405:29 to read as follows:

405:29 Annual Statement; Tax.

[He] I. Each licensed producer shall file with the commissioner, [in] not later than January 31st of each year, a sworn statement of the gross premiums charged for insurance procured or placed and the gross return premiums on such insurance cancelled under such license during the year ending on December 31 next preceding, and at the time of filing such statement shall pay to the state treasurer a sum equal to 2 percent of such gross premiums less such return premiums reported.

II. Any producer failing to file the report or failing to remit the proper tax within the time period for filing shall pay a penalty equal to 10 percent of the amount of tax due.

III. Each producer filing under this section shall be subject to the provisions of RSA 400-A:32-a.

154:3 Unauthorized Insurance; Penalty Added. Amend RSA 406-B:16, VI to read as follows:

VI.(a) Any insurance company or underwriter issuing contracts of insurance to industrial insureds, nor to any contract of insurance issued to any one or more industrial insureds. Every industrial insured under a contract procured from an unlicensed insurer shall pay to the commissioner of insurance before March 1 next succeeding the calendar year in which the insurance was so effectuated, continued, or renewed a premium receipts tax of 3 percent of the gross premiums charged for such insurance. For the purposes of this section, an “industrial insured” is:

[(a)] (1) An insured who procures the insurance of any risk or risks other than life and annuity contracts and health insurance contracts by use of the services of a full time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and

[(b)] (2) An insured whose aggregate annual premiums for insurance on all risks total at least $15,000; and

[(c)] (3) An insured having at least 25 full time employees.

(b) Any insured failing to file the report or failing to remit the proper tax within the time period for filing shall pay a penalty equal to 10 percent of the amount of tax due.

(c) For the purposes of this section, each insured filing under this section shall be subject to the provisions of RSA 400-A:32-a.

154:4 New Paragraph; Unauthorized Insurance; Scope. Amend RSA 406-B:17 by inserting after paragraph VII the following new paragraph:

VIII. Each insured filing under this section shall be subject to the provisions of RSA 400-A:32-a, I-III.

154:5 Effective Date. This act shall take effect upon its passage.

Approved: June 6, 2008

Effective Date: June 6, 2008