26.1-38.1-10. Credits for assessments paid - Tax offsets

26.1-38.1-10. Credits for assessments paid - Tax offsets

1. A member insurer may offset against its premium tax liability to this state an

assessment described in section 26.1-38.1-06 to the extent of twenty percent of the

amount of such assessment for each of the five calendar years following the year in

which such assessment was paid. In the event a member insurer should cease doing

business, all uncredited assessments may be credited against its premium tax liability

for the year it ceases doing business.

2. A member insurer that is exempt from taxes referenced in subsection 1 may recoup

that member insurer's assessments by a surcharge on that member insurer's

premiums in a sum reasonably calculated to recoup the assessments over a

reasonable period of time, as approved by the commissioner. Amounts recouped may

not be considered premiums for any other purpose, including the computation of gross

premium tax, the medical loss ratio, or agent commission. If a member insurer collects

excess surcharges, the insurer shall remit the excess amount to the association, and

the excess amount must be applied to reduce future assessments in the appropriate

account.

3. Any sums that are acquired by refund, pursuant to section 26.1-38.1-06, from the

association by member insurers, and which have been offset against premium taxes

as provided in subsection 1, must be paid by the member insurers to this state in such

manner as the tax authorities may require. The association shall notify the

commissioner that such refunds have been made.