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- Alaska Statutes.
- Title 21. Insurance
- Chapter 33. Unauthorized Insurers
- Section 61. Independently Procured Insurance; Premium Tax.
previous: Section 60
. Defense of Action By Unauthorized Insurer. [Repealed, Sec. 2 Ch 234 SLA 1968].
next: Section 65
AS 21.33.061. Independently Procured Insurance; Premium Tax.
- (a) Every insured who procures or causes to be procured or continues or renews insurance with a nonadmitted insurer, or an
insured or self-insurer who so procures or continues excess loss, catastrophe or other insurance, upon a subject of
insurance resident, located, or to be performed in this state, other than insurance lawfully procured through a surplus
lines broker under AS 21.34 shall, within 30 days after the date
the insurance was procured, continued, or renewed, file a report with the director in writing and in a form prescribed
by the director. The report must show the name and address of the insured, name and address of the insurer, the subject
of the insurance, a general description of the coverage, the amount of premium currently charged, and additional
pertinent information required by the director.
- (b) Insurance in a nonadmitted insurer of a subject of insurance 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, is
considered to be insurance procured or continued or renewed in this state within the intent of (a) of this section.
- (c) There is levied upon the obligation, chose in action, or right represented by the premium charged for the insurance, 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. The term "premium" includes all premiums, membership fees, assessments, dues,
and any other consideration for insurance. The insured shall, on or before March 1 following the calendar year in which
the insurance was procured, continued, or renewed, pay the amount of the tax to the director. In event of cancellation
and rewriting of the insurance contract, the additional premium for premium receipts tax purposes is the premium in
excess of the unearned premium of the cancelled insurance contract. If the tax prescribed by this section is not paid
within the time stated, 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 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.
- (d) 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, the tax due shall be computed on that portion of the policy premium that is
attributable to a 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 this 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
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 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.
- (e) [Repealed, Sec. 223 ch 67 SLA 1992].
- (f) The attorney general, upon request of the director, shall proceed in the courts of this or another state or in a
federal court or agency to recover the tax not paid within the time prescribed in this section.
- (g) This section does not apply to insurance of risks of the state or a political subdivision of the state, to insurance
of aircraft primarily engaged in interstate or foreign commerce, to life insurance, to health insurance, or to annuity
- (h) This section does not abrogate or modify, and may not be construed or considered to abrogate or modify, a provision of
or 21.33.042 or another provision of this chapter.
- (i) [Repealed, Sec. 223 ch 67 SLA 1992].
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