_______________________________________________
SUBSTITUTE
SENATE BILL 5334
_______________________________________________
AS
AMENDED BY THE HOUSE
Passed
Legislature - 1997 Regular Session
State
of Washington 55th Legislature 1997 Regular Session
By
Read
first time 02/12/97.
Crediting certain insurance premium taxes.
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 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((,)). 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 for an assessment paid
prior to April 1, 1993, or issued for an assessment paid for an insolvent
insurer for which the order of liquidation was entered 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:
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.
Passed the Senate April 19, 1997.
Passed the House April 11, 1997.
Approved by the Governor May
9, 1997.
Filed
in Office of Secretary of State May 9, 1997.
