CERTIFICATION OF ENROLLMENT

 

          SECOND ENGROSSED SUBSTITUTE HOUSE BILL 1592

 

 

 

 

 

 

 

                        54th Legislature

                    1995 2nd Special Session

Passed by the House May 24, 1995

  Yeas 75   Nays 18

 

 

 

 

Speaker of the

       House of Representatives

 

Passed by the Senate May 25, 1995

  Yeas 34   Nays 13

               CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SECOND ENGROSSED SUBSTITUTE HOUSE BILL 1592 as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

 

President of the Senate

 

                               Chief Clerk

 

 

Approved Place Style On Codes above, and Style Off Codes below.

                                     FILED

          

 

 

Governor of the State of Washington

                        Secretary of State

                       State of Washington


                  _______________________________________________

 

                    SECOND ENGROSSED SUBSTITUTE HOUSE BILL 1592

                  _______________________________________________

 

                   Passed Legislature - 1995 2nd Special Session

 

State of Washington              54th Legislature             1995 Regular Session

 

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Dellwo, Mielke and G. Fisher)

 

Read first time 02/27/95. 

 

Crediting certain insurance premium taxes.



     AN ACT Relating to credit against the premium tax for guaranty association assessments paid by insurers; amending RCW 48.32.145 and 48.32A.090; and declaring an emergency.

 

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 section, 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((,)).  For assessments paid after the effective date of this section, the amount of the credit shall be one-tenth of the aggregate amount of such aggregate assessments paid during such calendar year for each of the ten consecutive calendar years beginning with the calendar year following the calendar year in which such assessments are paid.  For assessments paid prior to April 1, 1993, the amount of the credit shall be one-fifth of the aggregate amount of such aggregate assessments paid 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)) the allowable credit is or becomes less than one thousand dollars, the entire amount ((may be credited)) of the credit may be offset 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 section, 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:

 

     (a) For assessments paid after the effective date of this section:

     100% for the calendar year of issuance;

     90% for the first calendar year after the year of issuance;

     80% for the second calendar year after the year of issuance;

     70% for the third calendar year after the year of issuance;

     60% for the fourth calendar year after the year of issuance;

     50% for the fifth calendar year after the year of issuance;

     40% for the sixth calendar year after the year of issuance;

     30% for the seventh calendar year after the year of issuance;

     20% for the eighth calendar year after the year of issuance;

     10% for the ninth calendar year after the year of issuance; and

     0% for the tenth and subsequent calendar years after the year of issuance; or

     (b) For assessments paid prior to April 1, 1993:

     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 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.

 

     NEW SECTION.  Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

 


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