Maine Revised Statutes Title 36 Sec. 2531 – Taxation of nonadmitted insurance coverage
Current as of: 2023 | Check for updates
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1. Generally. All gross direct insurance premiums and annuity considerations on contracts written by insurers that do not have certificates of authority to do business in this State issued by the Superintendent of Insurance pursuant to Title 24?A are subject to taxation in accordance with this section if this State is the insured’s home state, as defined in the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203, Section 527. This section does not apply to reinsurance premiums paid by an authorized domestic insurer.
[PL 2023, c. 441, Pt. C, §2 (AMD); PL 2023, c. 441, Pt. C, §11 (AFF).]
Terms Used In Maine Revised Statutes Title 36 Sec. 2531
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
- Return: means any document, digital file or electronic data transmission containing information required by this Title to be reported to the State Tax Assessor. See Maine Revised Statutes Title 36 Sec. 111
- Tax: means the total amount required to be paid, withheld and paid over or collected and paid over with respect to estimated or actual tax liability under this Title, any credit or reimbursement allowed or paid pursuant to this Title that is recoverable by the assessor and any amount assessed by the assessor pursuant to this Title, including any interest or penalties provided by law. See Maine Revised Statutes Title 36 Sec. 111
2. Rate and incidence of tax. Except as otherwise provided in section 2532, the rate of taxation is 3% of the premiums subject to tax under this section. For all coverage placed in accordance with Title 24?A, chapter 19, the tax must be paid by the surplus lines producer. For all other nonadmitted insurance, the tax must be paid by the insured.
[PL 2023, c. 372, §1 (AMD).]
3. Returns. Except as otherwise provided in accordance with a multistate agreement entered into pursuant to section 2532, every producer holding surplus lines authority in this State shall file a return and pay the tax due in accordance with section 2521?A and every insured subject to tax in accordance with this section shall file a return and pay the tax due subject to the same requirements as provided in section 2521?A. An insurance agency may elect to collect and pay the tax on surplus lines premiums on behalf of all of its employees who are surplus lines producers and file a single return.
[PL 2011, c. 548, §19 (RPR); PL 2011, c. 548, §36 (AFF).]
SECTION HISTORY
PL 2011, c. 331, §14 (NEW). PL 2011, c. 331, §§16, 17 (AFF). PL 2011, c. 380, Pt. Q, §5 (NEW). PL 2011, c. 380, Pt. Q, §7 (AFF). PL 2011, c. 453, §4 (NEW). PL 2011, c. 548, §19 (RPR). PL 2011, c. 548, §36 (AFF). PL 2021, c. 630, Pt. A, §2 (AMD). PL 2023, c. 372, §1 (AMD). PL 2023, c. 441, Pt. C, §2 (AMD). PL 2023, c. 441, Pt. C, §11 (AFF).