Interpretation and application of NMSA 1978 59A-11-3(A) and 59A-12-15

OFFICE of the SUPERINTENDENT of INSURANCE

Superintendent ofInsurance

John G. Franchini

INSURANCE BULLETIN No. 2014-16

October 10, 2014

P.O. Box 1689

1120 Paseo de Peralta

Santa Fe, NM 87504-1689

(505) 827-4601

www.OSLstate.nm,lls

TO:

ALL PARTIES REQUIRED TO FILE PREMIUM TAX

RE:

ESTIMATED QUARTERLY PREMIUM TAX AND HEALTH INSURANCE SURTAX

THE FOLLOWING BULLETIN is issued pursuant to 13.1.2,1 to 13.1.2,10 NMAC.

The purpose of this Bulletin is to advise insurers and other parties that are required under Section D of 59A-6-2

NMSA 1978 to make estimated payments of premium tax and health insurance premium surtax to the New Mexico

Office of Superintendent of Insurance that the language of Section D of 59A-6-2 NMSA 1978 was revised effective

July 1,2014. The new language, which is currently in effect, states that the "estimated payments shall be equal to at

least one-fourth of the payment made during the previous calendar year 01' one-fifth of the actual payment due for the

current calendar year, whichever is greater." The Office of Superintendent ofInsurance interprets the statutory phrase

"one-fifth of the actual payment due for the current calendar year" to mean "one-fifth of the actual payment due for

the current calendar quarter" in order to avoid cumulative double-counting of quarterly taxes due as the year

progresses.

The attached 2014 Estimated Quarterly Premium Tax Report displays the required entries.

Any

questions

about

this

Bulletin

should

be

directed

to

Maria

Soto

at

ase

"one-fifth of the actual payment due for the current calendar year" to mean "one-fifth of the actual payment due for

the current calendar quarter" in order to avoid cumulative double-counting of quarterly taxes due as the year

progresses.

The attached 2014 Estimated Quarterly Premium Tax Report displays the required entries.

Any

questions

about

this

Bulletin

should

be

directed

to

Maria

Soto

at

(505)

827-4075

or

at

maria.soto@state.nm.us.

DONE AND ORDERED this L.a,th day of October, 2014.

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JOHN G. FRANCHINI

Superintendent ofInsurance

STATE OF NEW MEXICO

OFFICE OF SUPERINTENDENT OF INSURANCE

Financial Audit Bureau

P.O. Box 1689, Santa Fe, New Mexico, 87504-1689

1120 Paseo De Peralta, Room 433, Santa Fe, New Mexico, 87501

505-827-5781, 505-827-4601 or 1-800-427-5674

2014 Estimated Quarterly Premium Tax Report (effective 3rd quarter of 2014)

Filing Status:

Company Name:

Address:

_____________________________

Name or Address change

(Please note changes)

NM Company Code:

NAIC #:

AMENDED

Reason: __________________

__________________

Contact Person:

Phone:

Email:

Filing Period:

Instructions/Reminders:

 1st Quarter Due April 15th

 2nd Quarter Due July 15th

* Make one check payable to “Office of Superintendent of Insurance or OSI”

3rd Quarter Due Oct. 15th

* Late, non-filing, unsigned and/or incomplete reports will be assessed a

4th Quarter Due Jan. 15th

penalty pursuant to NMSA 1978, Section 59A-6-4.

* New Mexico Premium Tax rate is 3.003%.

* Applicable Credits are transferable between lines of business, with written confirmation.

For each Column enter the following:

1

ce or OSI”

3rd Quarter Due Oct. 15th

* Late, non-filing, unsigned and/or incomplete reports will be assessed a

4th Quarter Due Jan. 15th

penalty pursuant to NMSA 1978, Section 59A-6-4.

* New Mexico Premium Tax rate is 3.003%.

* Applicable Credits are transferable between lines of business, with written confirmation.

For each Column enter the following:

1. 25% of tax due in preceding calendar year

2. 20% of tax due for this quarter

3. Tax credit to be applied

This line is to be used to report ONLY the applicable credit

to be applied.

4. Amount Due (Greater of 1 or 2, minus 3)

All health insurers and plans shall complete the following:

1. 25% of tax due in preceding calendar year

2. 20% of tax due for this quarter

3. Tax credit to be applied

(This line is to be used to report ONLY the applicable credit to be applied)

4. Amount Due (Greater of 1 or 2, minus 3)

Check Number

Check Amount $

Signature of Authorized Preparer

Date

The signature for the Authorized Preparer denotes: 1) The Authorized Preparer is authorized to sign and submit this report; and 2) The

Authorized Preparer confirms the contents of this report are true and correct to the best of the Authorized Preparer’s knowledge.

Form 306: Revised 10-10-14

Life/Health

54

Casualty

54

Property

78

Vehicle

78

Surtax

53

SIGN