H-2112.1 _______________________________________________
SECOND ENGROSSED SUBSTITUTE HOUSE BILL 1592
_______________________________________________
State of Washington 54th Legislature 1996 Regular Session
By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Dellwo, Mielke and G. Fisher)
Read first time 02/23/95. Referred to Committee on .
AN ACT Relating to credit against the premium tax for guaranty association assessments paid by insurers; and amending RCW 48.32.145 and 48.32A.090.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 48.32.145 and 1993 sp.s. c 25 s 901 are each amended to read as follows:
Every member insurer
that prior to April 1, 1993, or after the effective date of this act,
shall have paid one or more assessments levied pursuant to RCW 48.32.060(1)(c)
shall be entitled to take, as a credit against any premium tax falling due
under RCW 48.14.020, ((one-fifth)) fifteen percent of the aggregate
amount of such aggregate assessments during such calendar year for each of the
five consecutive calendar years beginning with the calendar year following the
calendar year in which such assessments are paid. Whenever an assessment or
uncredited portion of an assessment is or becomes less than one thousand
dollars, seventy-five percent of the entire amount may be credited
against the premium tax at the next time the premium tax is paid.
((This section shall
expire January 1, 1999.))
Sec. 2. RCW 48.32A.090 and 1993 sp.s. c 25 s 902 are each amended to read as follows:
(1) The association shall issue to each insurer paying an assessment under this chapter certificates of contribution, in appropriate form and terms as prescribed or approved by the commissioner, for the amounts so paid into the respective funds. All outstanding certificates against a particular fund shall be of equal dignity and priority without reference to amounts or dates of issue.
(2) An outstanding certificate of contribution issued prior to April 1, 1993, or after the effective date of this act, shall be shown by the insurer in its financial statements as an admitted asset for such amount and period of time as the commissioner may approve. Unless a longer period has been allowed by the commissioner the insurer shall in any event at its option have the right to so show a certificate of contribution as an admitted asset at percentages of original face amount for calendar years as follows:
100% for the calendar year of issuance;
80% for the first calendar year after the year of issuance;
60% for the second calendar year after the year of issuance;
40% for the third calendar year after the year of issuance;
20% for the fourth calendar year after the year of issuance; and
0% for the fifth and subsequent calendar years after the year of issuance.
Notwithstanding the foregoing, if the value of a certificate of contribution is or becomes less than one thousand dollars, the entire amount may be written off by the insurer in that year.
(3) The insurer shall offset seventy-five percent of the amount written off by it in a calendar year under subsection (2) of this section against its premium tax liability to this state accrued with respect to business transacted in such year.
(4) Any sums recovered by the association representing sums which have theretofore been written off by contributing insurers and offset against premium taxes as provided in subsection (3) of this section, shall be paid by the association to the commissioner and then deposited with the state treasurer for credit to the general fund of the state of Washington.
(5) No distribution to stockholders, if any, of a liquidating insurer shall be made unless and until the total amount of assessments levied by the association with respect to such insurer have been fully recovered by the association.
--- END ---