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- Alaska Statutes.
- Title 21. Insurance
- Chapter 33. Unauthorized Insurers
- Section 55. Unauthorized Insurance Premium Tax.
previous: Section 51
. Reporting of Unauthorized Insurance. [Repealed, Sec. 26 Ch 117 SLA 1984].
next: Section 60
. Defense of Action By Unauthorized Insurer. [Repealed, Sec. 2 Ch 234 SLA 1968].
AS 21.33.055. Unauthorized Insurance Premium Tax.
- (a) Except as to premiums on lawfully procured surplus lines insurance exported under AS 21.34 and premiums on independently procured insurance on which a
tax has been paid under AS 21.33.061
, every nonadmitted insurer shall pay to the director, on or before March 1 following the calendar year in which the
insurance was so effectuated, continued, or renewed, a premium-receipts tax of three percent of gross premiums charged
for the insurance other than wet marine and transportation insurance and a premium-receipts tax of three-fourths of one
percent of gross premiums charged for the wet marine and transportation insurance on subjects resident, located, or to
be performed in this state. The insurance on subjects resident, located, or to be performed in this state procured
through negotiations or an application, in whole or in part occurring or made in or from in or out of this state, or
for which premiums in whole or in part are remitted directly or indirectly from in or out of this state, shall be
considered to be insurance procured or continued or renewed in this state. The term "premium" includes all premiums,
membership fees, assessments, dues, and any other consideration for insurance. The tax paid by the insurer is in lieu
of all insurer taxes and fire department dues. On default of a nonadmitted insurer in the payment of the tax, the
insured shall pay the tax within 30 days of written notice from the director of the default by the nonadmitted insurer.
If the tax prescribed by this section is not paid by the nonadmitted insurer within the time stated or by the insured
within the time stated after notice of default by the nonadmitted insurer, the tax may be increased by
- (1) a late payment fee of $1,000 or 10 percent of the tax due, whichever is greater;
- (2) interest at the rate of one percent a month or part of a month from the date the payment was originally due to the
date paid; and
- (3) a penalty not to exceed $100 a day or 25 percent of the tax due, whichever is greater, from the date the payment was
due to the date paid.
- (b) In determining the amount of premiums taxable in this state, all premiums written, procured, or received in this state
shall be considered written on property or a subject located or resident in this state, except premiums that are
properly allocated or apportioned and reported as taxable premiums of another state. In determining the amount of gross
premiums taxable in this state covering a subject resident, located, or to be performed both inside and outside the
state, the tax due shall be computed on that portion of the policy premium that is attributable to the subject
resident, located, or to be performed in this state and that relates to the kind of insurance being placed as
determined by reference to an allocation schedule as follows:
- (1) if a policy covers more than one classification,
- (A) for any portion of the coverage identified by a classification on the allocation schedule, the tax shall be computed
by using the allocation schedule for the corresponding portion of the premium;
- (B) for any portion of the coverage not identified by a classification on the allocation schedule, the tax shall be
computed by using an alternative equitable method of allocation for the property or subject;
- (C) for any portion of the coverage where the premium is indivisible, the tax shall be computed by using the method of
allocation that pertains to the classification describing the predominant coverage.
- (2) if the information provided is insufficient to substantiate the method of allocation used or if the director
determines that the method is incorrect, the director shall determine the equitable and appropriate amount of tax due
to the state as follows:
- (A) by use of the allocation schedule where the subject is appropriately identified in the schedule;
- (B) where the allocation schedule does not identify a classification appropriate to the coverage, the director may give
acceptance by significant weight to documented evidence of the underwriting bases and other criteria used by the
insurer or may give consideration to other available information to the extent it is sufficient and relevant, including
the percentage of the insured's physical assets in this state, the percentage of the insured's sales in this state, the
percentage of income or resources derived from this state, and the amount of premium tax paid to another jurisdiction
for the policy.
- (c) This section does not apply to insurance of risks of the state or a political subdivision of the state, or to
insurance of aircraft primarily engaged in interstate or foreign commerce.
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