Virginia Code 58.1-2501.1: Premium tax; travel insurance
A. As used in this section:
Terms Used In Virginia Code 58.1-2501.1
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
- Tax: means the amount derived by multiplying the direct gross premium income in the taxable year by the tax rate. See Virginia Code 58.1-2500
“Blanket travel insurance” has the same meaning ascribed thereto in § 38.2-1887.
“Primary certificate holder” has the same meaning ascribed thereto in § 38.2-1887.
“Primary policyholder” has the same meaning ascribed thereto in § 38.2-1887.
“Travel assistance services” has the same meaning ascribed thereto in § 38.2-1887.
“Travel insurance” has the same meaning ascribed thereto in § 38.2-1887.
B. A travel insurer shall pay premium tax as provided in § 58.1-2501 on travel insurance premiums paid by any of the following:
1. A primary policyholder who is a resident of the Commonwealth;
2. A primary certificate holder that is a resident of the Commonwealth; or
3. A blanket travel insurance policyholder that is a resident of the Commonwealth or that has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in the Commonwealth for eligible blanket group members, subject to apportionment rules that apply to the insurer across multiple taxing jurisdictions or that permits the insurer to allocate premiums on an apportioned basis in a reasonable and equitable manner in those jurisdictions.
C. A travel insurer shall (i) document the state of residence or principal place of business of the primary policyholder or primary certificate holder and (ii) report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.