Nac: Chapter 680B - Insurance: Fees And Taxes

Link to law: http://www.leg.state.nv.us/nac/NAC-680B.html
Published: 2015

[Rev. 11/22/2013 10:23:42

AM--2013]



[NAC-680B Revised Date: 1-10]

CHAPTER 680B - INSURANCE: FEES AND TAXES

FILING REQUIREMENTS

680B.005         “Commissioner” defined.

680B.010         Submission of form for assessing

fees; time for action by Commissioner.

680B.020         Forms for a new policy.

680B.030         Submitting several types of forms;

form for waiver or other amendment.

680B.040         Filing of rates.

680B.050         Filing to conform to new law.

680B.070         Submission in response to request by

Commissioner.

680B.090         Resubmission of disapproved form;

fees not refundable; credit for overpayment.

680B.095         Fees: Payment by electronic

transfer.

GENERAL TAX ON PREMIUMS

680B.150         Definitions.

680B.160         “Ad valorem credit” defined.

680B.170         “Executive Director” defined.

680B.180         “Fifty percent credit” defined.

680B.190         “Net direct premiums and net direct

considerations written during the preceding calendar quarter” defined.

680B.200         Illustration of proper application

of NRS 680B.032.

680B.210         Application of fifty percent credit

and ad valorem credit against tax imposed for privilege of transacting business

in this State.

680B.220         Application of fifty percent credit

if home office or regional home office in Nevada.

680B.230         Application of ad valorem credit if

home office or regional home office in Nevada.

680B.240         Failure to satisfy requirements for

credits for maintaining home office; payment of deficiency and interest.

680B.250         Credit against tax imposed in succeeding

calendar year.

 

FILING REQUIREMENTS

      NAC 680B.005  “Commissioner” defined.  As used in this chapter,

unless the context otherwise requires, “Commissioner” means the Commissioner of

Insurance.

     (Supplied in codification)

      NAC 680B.010  Submission of form for assessing fees; time for action by Commissioner. (NRS 679B.130)

     1.  An insurer who submits a form for an

insurance policy, rate, rider or endorsement or a broker who submits a

memorandum of open lines insurance or brokers affidavit of surplus lines

insurance to the Commissioner must complete and submit with that form a copy of

the Commissioner’s form for assessing fees or the Commissioner will not

consider the submission to be complete.

     2.  If the form being submitted is one upon

which the Commissioner by law has a limited time to act, the time for the

Commissioner to act does not begin to run until the appropriate filing fee is

paid and the submission is complete.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.020  Forms for a new policy. (NRS 679B.130)  In

submitting the forms for a new policy, an insurer may, for a single filing fee,

include any number of filings of rates and of forms for riders and endorsements

which are necessary to carry out a complete program for the sale of the policy.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.030  Submitting several types of forms; form for waiver or other

amendment. (NRS

679B.130)

     1.  In submitting under one letter of

transmittal several types of forms which amend previously approved policies, an

insurer must pay the appropriate filing fee for each type of form.

     2.  For the purpose of assessing a filing

fee, the form for a waiver or other amendment to a policy is equivalent to a

rider or endorsement.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.040  Filing of rates. (NRS 679B.130)

     1.  In submitting the rates for a policy

previously approved by the Commissioner, an insurer may include any number of

changes to the rates and to the classifications and rules for the rates for a

single filing fee.

     2.  For the purpose of assessing a filing

fee:

     (a) An application which is submitted to the

Commissioner pursuant to NAC 686B.520

for consent to charge an insured a different rate for a specific risk than the

rate previously approved by the Commissioner constitutes the filing of a rate.

     (b) Any filing with the Commissioner of schedules

of premiums, dues, fees or other charges pursuant to chapter 686B, 690A, 695B or 695C of NRS is a filing of rates.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84; A

12-15-94; R120-07, 1-30-2008)

      NAC 680B.050  Filing to conform to new law. (NRS 679B.130)  An

insurer may file any number of forms for a single filing fee in order to comply

with a new law requiring changes in coverage if the forms are so identified in

the letter of transmittal that accompanies the submission.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.070  Submission in response to request by Commissioner. (NRS 679B.130)  A

broker, insurer or group of insurers which submits information to the

Commissioner in response to a specific request by him will not be charged a

filing fee even if the information is in the form of a policy, rate or rider,

an endorsement or other amendment to a policy, or an affidavit of surplus lines

insurance or a memorandum of open lines insurance, if the submission is

identified in the letter of transmittal as being made in response to the

Commissioner’s request.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.090  Resubmission of disapproved form; fees not refundable; credit for

overpayment. (NRS

679B.130)

     1.  If the Commissioner disapproves a form

which has been filed by an insurer, any resubmission of that form must be

accompanied by the appropriate fee.

     2.  A fee which is paid to the Commissioner

when a form is filed is not refundable except that the Commissioner will give

an insurer credit against fees assessed in subsequent filings if it has paid

fees in excess of those required by law.

     (Added to NAC by Comm’r of Insurance, eff. 1-19-84)

      NAC 680B.095  Fees: Payment by electronic transfer. (NRS 679B.130, 679B.136)  Any fees

required to be paid for filing forms with the Commissioner may be paid in

accordance with the program adopted by the State Treasurer that provides for

the electronic transfer of money for the payment of money owed.

     (Added to NAC by Comm’r of Insurance by R115-02, eff. 3-18-2003)

GENERAL TAX ON PREMIUMS

      NAC 680B.150  Definitions. (NRS 360.090, 680B.027)  As used

in NAC 680B.150 to 680B.250,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 680B.160 to 680B.190,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.160  “Ad valorem credit” defined. (NRS 360.090, 680B.027)  “Ad

valorem credit” means the credit set forth in paragraph (b) of subsection 1 of NRS 680B.050.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.170  “Executive Director” defined. (NRS 360.090, 680B.027)  “Executive

Director” means the Executive Director of the Department of Taxation.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.180  “Fifty percent credit” defined. (NRS 360.090, 680B.027)  “Fifty

percent credit” means the credit set forth in paragraph (a) of subsection 1 of NRS 680B.050.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.190  “Net direct premiums and net direct considerations written during

the preceding calendar quarter” defined. (NRS 360.090, 680B.027)  “Net

direct premiums and net direct considerations written during the preceding

calendar quarter” means those net direct premiums and net direct considerations

written during the same quarter for which each quarterly report and payment is

due pursuant to the provisions of NRS

680B.032.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.200  Illustration of proper application of NRS

680B.032. (NRS 360.090, 680B.027, 680B.032)  The

following example is given to illustrate the proper application of NRS 680B.032. If an insurer

writes $500,000 of net direct premiums and net direct considerations during the

quarter that runs from January 1 to March 31 of a calendar year and the insurer

is required to file quarterly reports and make quarterly payments pursuant to

the provisions of NRS 680B.032,

the insurer shall file its quarterly report and make its quarterly payment of

taxes on that $500,000 by April 30 of that same calendar year.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.210  Application of fifty percent credit and ad valorem credit against

tax imposed for privilege of transacting business in this State. (NRS 360.090, 680B.027, 680B.050)

     1.  Except as otherwise provided in NAC 680B.240, an insurer who has established to the

satisfaction of the Executive Director that it meets all the requirements set

forth in NRS 680B.050 and 680B.055 may apply:

     (a) The fifty percent credit; and

     (b) The ad valorem credit,

Ê against the

tax imposed by NRS 680B.027.

     2.  Such an insurer shall apply these credits

pursuant to the provisions of NAC 680B.220 to 680B.250, inclusive.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.220  Application of fifty percent credit if home office or regional

home office in Nevada. (NRS 360.090, 680B.027, 680B.050)  Except

as otherwise provided in NAC 680B.240, an insurer

who has established to the satisfaction of the Executive Director that the

insurer meets all the requirements set forth in NRS 680B.050 and 680B.055 and wishes to apply the

fifty percent credit shall:

     1.  If the insurer is required to file

quarterly reports and make quarterly payments pursuant to NRS 680B.032, reduce by 50

percent the amount of the tax required to be paid on net direct premiums and

net direct considerations written during the preceding calendar quarter when

the insurer files the quarterly reports and makes the quarterly payments

pursuant to the provisions of NRS

680B.032.

     2.  If the insurer is not required to file

quarterly reports and make quarterly payments pursuant to the provisions of NRS 680B.032, reduce by 50

percent the aggregate amount of the tax required to be paid on net direct

premiums and net direct considerations written during the immediately preceding

calendar year when the insurer files the annual report and makes the annual

payment pursuant to the provisions of NRS 680B.030.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.230  Application of ad valorem credit if home office or regional home

office in Nevada. (NRS 360.090, 680B.027, 680B.050)

     1.  Except as otherwise provided in NAC 680B.240, an insurer who has established to the

satisfaction of the Executive Director that it meets all the requirements set

forth in NRS 680B.050 and 680B.055 and wishes to apply the

ad valorem credit shall reduce the amount of tax the insurer is required to pay

pursuant to NRS 680B.027 by

the amount of the ad valorem credit when the insurer files the annual report

and makes the annual payment pursuant to the provisions of NRS 680B.030.

     2.  An insurer who is required to file

quarterly reports and make quarterly payments pursuant to the provisions of NRS 680B.032 may not reduce the

amount of tax the insurer is required to pay pursuant to NRS 680B.027 by the amount of the

ad valorem credit or any portion of that amount when the insurer files the

quarterly reports and makes the quarterly payments pursuant to the provisions

of NRS 680B.032.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.240  Failure to satisfy requirements for credits for maintaining home

office; payment of deficiency and interest. (NRS 360.090, 680B.027, 680B.050)

     1.  If an insurer fails to satisfy the

requirements of NRS 680B.050

or 680B.055 for the entire

year for which the credits for maintaining a home office in this State are

claimed, the insurer is not entitled to any credit for that entire calendar

year.

     2.  If the Nevada Tax Commission, the

Department of Taxation or a court of competent jurisdiction determines that an

insurer who applied the fifty percent credit when the insurer filed a quarterly

report and made a quarterly payment pursuant to the provisions of NRS 680B.032 has subsequently

failed to satisfy the requirements of NRS 680B.050 or 680B.055 during the same calendar

year in which the insurer made the quarterly payment, the insurer shall remit

to the Department of Taxation:

     (a) The difference between the amount the insurer

set forth as the quarterly payment in the quarterly report filed with the

Department of Taxation and the amount the insurer would have owed for the

quarterly payment if the insurer had not applied the fifty percent credit and

any other amount that the Nevada Tax Commission, the Department of Taxation or

a court of competent jurisdiction determines to be a deficiency; and

     (b) All applicable interest owed for failure to pay

the full amount in a timely manner. Such interest must be based on the

difference between the amount the insurer set forth as the quarterly payment in

the quarterly report filed with the Department of Taxation and the amount the

insurer would have owed for the quarterly payment if the insurer had not

applied the fifty percent credit and any other amount that the Nevada Tax

Commission, the Department of Taxation or a court of competent jurisdiction

determines to be a deficiency.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)

      NAC 680B.250  Credit against tax imposed in succeeding calendar year. (NRS 360.090, 680B.027, 680B.050)  If an

insurer is not entitled to a certain amount of the fifty percent credit or the

ad valorem credit because it would reduce the amount of tax payable to less

than 20 percent of the tax otherwise payable for that year pursuant to the

provisions of NRS 680B.027,

the insurer may not carry forward that amount of either credit for use as a

credit against the tax imposed by NRS

680B.027 in a succeeding calendar year.

     (Added to NAC by Tax Comm’n by R006-98, eff. 11-20-98)
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