Senate Bill No. 308

(By Senator Minard)

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[Introduced March 8, 1993; referred to the Committee
on Banking and Insurance.]

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A BILL to amend article thirty-two, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section eighteen-a, relating to premium tax rates and premium tax filing requirements of risk purchasing groups.

 Be it enacted by the Legislature of West Virginia:
That article thirty-two, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section eighteen-a, to read as follows:
ARTICLE 32. RISK RETENTION ACT.

§33-32-18a. Purchasing group premium reporting and taxation of coverage purchased.

(a) Premium taxes and taxes on premiums paid for coverage of risks resident, located or to be performed in this state by a purchasing group or any members of the purchasing group shall be imposed at the same rate and subject to the same interest, finesand penalties as are applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds.
(b) Coverage placed with an admitted insurer or registered risk retention group shall be paid by that insurance source. Coverage placed through an excess lines broker licensed in this state shall be paid by the excess lines broker. Premium taxes not paid by these insurance sources shall be paid by the purchasing group. Any taxes not paid by the insurance source or the purchasing group shall be paid by the members of the purchasing group.
(c) Registered purchasing groups shall annually, on or before the first day of March, file with the commissioner a report of premiums paid during the previous calendar year for coverage of risks resident, located or to be performed in this state. The report shall be on a form prescribed by the commissioner and made under oath of its president or secretary. The report shall clearly indicate the insurance source or sources referenced in subsection (b) of this section.



NOTE: The purpose of this bill is to add a new section eighteen-a to this article that specifies the rate and responsibilities for premium tax on coverage of risks resident, located or to be performed in this state purchased by a risk purchasing group for its members. This new section also requires registered risk purchasing groups to file annually on or before the first day of March a report with the commissioner that clearly indicates the insurance source or sources of coverage purchased in this state for its members.

This section is new; therefore, strike-throughs andunderscoring have been omitted.