Connecticut General Statutes 12-202 – Tax on direct premiums of domestic insurance companies. Exception
(a) Each domestic insurance company shall, annually, pay a tax on the total net direct premiums received by such company during the calendar year next preceding from policies written on property or risks located or resident in this state. The rate of tax on all net direct insurance premiums received (1) on or after January 1, 1995, and prior to January 1, 2018, shall be one and three-quarters per cent, and (2) on and after January 1, 2018, shall be one and one-half per cent. The franchise tax imposed under this section on premium income for the privilege of doing business in the state is in addition to the tax imposed under chapter 208. In the case of any local domestic insurance company the admitted assets of which as of the end of an income year do not exceed ninety-five million dollars, eighty per cent of the tax paid by such company under chapter 208 during such income year reduced by any refunds of taxes paid by such company and granted under said chapter within such income year and eighty per cent of the assessment paid by such company under section 38a-48 during such income year shall be allowed as a credit in the determination of the tax under this chapter payable with respect to total net direct premiums received during such income year, provided that these two credits shall not reduce the tax under this chapter to less than zero, and provided further in the case of a local domestic insurance company that is a member of an insurance holding company system, as defined in section 38a-129, these credits shall apply if the total admitted assets of the local domestic insurance company and its affiliates, as defined in said section, do not exceed two hundred fifty million dollars or, in the alternative, in the case of a local domestic insurance company that is a member of an insurance holding company system, these credits shall apply only if total direct written premiums are derived from policies issued or delivered in Connecticut, on risk located in Connecticut and, as of the end of the income year the company and its affiliates have admitted assets minus unpaid losses and loss adjustment expenses that are also discounted for federal and state tax purposes and that for such local domestic insurance company and its affiliates, as defined in section 38a-129, do not exceed two hundred fifty million dollars.
Terms Used In Connecticut General Statutes 12-202
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- company: means any person, partnership, association, company, limited liability company or corporation, except an incorporated municipality. See Connecticut General Statutes 12-1
- Domestic insurance company: means any insurance company chartered by or organized or constituted within or under the laws of this state. See Connecticut General Statutes 12-201
- Insurance company: means any corporation, limited liability company, association, partnership or combination of persons doing any kind or form of insurance business other than a fraternal benefit society, including a receiver, trustee or other fiduciary of any insurance company when the context reasonably permits. See Connecticut General Statutes 12-201
- Local domestic insurance company: means any domestic insurance company more than fifty per cent of the total gross direct premiums of which are received during the calendar year next preceding for insurance on property or risks located or resident in this state. See Connecticut General Statutes 12-201
- Net direct premiums: means gross direct premiums less the following items: (A) Returned premiums, including cancellations, and (B) dividends paid to policyholders on direct business, not including any dividends paid on account of the ownership of stock. See Connecticut General Statutes 12-201
- Received: means "received" or "accrued" construed according to the method of accounting customarily employed by the taxpayers. See Connecticut General Statutes 12-201
- State: means any state, territory or district of the United States. See Connecticut General Statutes 12-201
(b) Notwithstanding the provisions of subsection (a) of this section, the tax shall not apply to surplus lines insurance policies issued by domestic insurance companies designated as surplus lines insurers pursuant to section 38a-271a.