ENGROSSED
Senate Bill No. 325
(By Senators Minard and Helmick)
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[Introduced March 9, 1993; referred to the Committee
on Banking and Insurance.]
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A BILL to amend and reenact section five, article thirty-two,
chapter thirty-three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; and to further
amend said article by adding thereto a new section,
designated section eighteen-a, all relating to premium tax
rates and premium tax filing requirements of risk retention
groups and risk purchasing groups.
Be it enacted by the Legislature of West Virginia:
That section five, article thirty-two, chapter thirty-three
of the code of West Virginia, one thousand nine hundred thirty-
one, as amended, be amended and reenacted; and that said article
be further amended by adding thereto a new section, designated
section eighteen-a, all to read as follows:
ARTICLE 32. RISK RETENTION ACT.
§33-32-5. Tax on premiums collected.
(a) Each risk retention group shall be liable for thepayment of premium taxes and taxes on premiums of direct business
for risks resident, located or to be performed in this state.
Each risk retention group shall be subject to the same rate of
tax and the same interests, fines and penalties for nonpayment of
tax as that generally applicable to insurers under article three
of this chapter. Each risk retention group shall, on or before
the first day of March of each year, under oath of its president
or secretary, make a premium tax return for the previous calendar
year on a form prescribed by the commissioner, showing the net
premiums, whether designated as a premium or by some other name,
collected and received by it during the previous calendar year
for such risks and compute the amount of premium tax chargeable
to it and transmit with such return to the commissioner a
remittance in full for the tax due. All such taxes received by
the commissioner pursuant to this section shall be paid by the
commissioner into the state treasury for the purposes designated
in article three of this chapter.
(b) The tax provided for in this section shall constitute
all taxes collectible under the laws of this state from any risk
retention group, and no other premium tax or other taxes shall be
levied and collected from any risk retention group by the state
or any county, city or municipality within this state, except ad
valorem taxes.
(c) To the extent that a risk retention group utilizes
insurance agents, each such agent shall keep a complete and
separate record of all policies procured from each risk retentiongroup, which record shall be open to examination by the
commissioner, as provided in section nine, article two of this
chapter. These records shall, for each policy and each kind of
insurance provided thereunder, include the following:
(1) The limit of liability;
(2) The time period covered;
(3) The effective date;
(4) The name of the risk retention group which issued the
policy;
(5) The gross premium charged; and
(6) The amount of return premiums, if any.
§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, fines
and 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 orthe 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. Said report shall be on a form prescribed by the
commissioner and made under oath of its president or secretary.
Said report shall clearly indicate the insurance source or
sources referenced in subsection (b) of this section.