(a) Charge Levied. Thereis levied on each insurance company an annual charge for the purposes stated insubsection (d) of this section. The charge levied in this section is inaddition to all other fees and taxes. The percentage rate of the charge isestablished pursuant to subsection (b) of this section and is applied to thecompany's premium tax liability for the taxable year. In determining aninsurance company's premium tax liability for a taxable year, the followingshall be disregarded:
(1) Additional taxesimposed by G.S. 105‑228.8.
(2) Repealed by SessionLaws 2008‑134, s. 67(a), as amended by Session Laws 2009‑445, s.44, effective for taxable years beginning on or after January 1, 2008.
(3) Any tax credits forguaranty or solvency fund assessments under G.S. 105‑228.5A or G.S. 97‑133(a).
(4) Any tax creditsallowed under Chapter 105 of the General Statutes other than tax payments madeby or on behalf of the taxpayer.
(b) Rates. The rateof the charge for each taxable year shall be the percentage rate established bythe General Assembly. When the Department prepares its budget request for eachupcoming fiscal year, the Department shall propose a percentage rate of thecharge levied in this section. The Governor shall submit that proposed rate tothe General Assembly each fiscal year. The General Assembly shall set by lawthe percentage rate of the charge levied in this section. The percentage ratemay not exceed the rate necessary to generate funds sufficient to defray theestimated cost of the operations of the Department for each upcoming fiscalyear, including a reasonable margin for a reserve fund. The amount of thereserve may not exceed one‑third of the estimated cost of operating theDepartment for each upcoming fiscal year. In calculating the amount of thereserve, the General Assembly shall consider all relevant factors that mayaffect the cost of operating the Department or a possible unanticipatedincrease or decrease in North Carolina premiums or other charge revenue.
(c) Returns; WhenPayable. The charge levied on each insurance company is payable at the timethe insurance company remits its premium tax. If the insurance company isrequired to remit installment payments of premiums tax under G.S. 105‑228.5for a taxable year, it shall also remit installment payments of the chargelevied in this section for that taxable year at the same time and on the samebasis as the premium tax installment payments. Each installment payment shallbe equal to at least thirty‑three and one‑third percent (33.3%) ofthe insurance company's regulatory charge liability incurred in the immediatelypreceding taxable year.
Every insurance company shall,on or before the date the charge levied in this section is due, file a returnon a form prescribed by the Secretary of Revenue. The return shall state thecompany's total North Carolina premiums or presumed premiums for the taxableyear and shall be accompanied by any supporting documentation that theSecretary of Revenue may by rule require.
(d) Use of Proceeds. TheInsurance Regulatory Fund is created in the State treasury, under the controlof the Office of State Budget and Management. The proceeds of the charge leviedin this section and all fees collected under Articles 69 through 71 of thisChapter and under Articles 9 and 9C of Chapter 143 of the General Statutesshall be credited to the Fund. The Fund shall be placed in an interest‑bearingaccount and any interest or other income derived from the Fund shall be creditedto the Fund. Moneys in the Fund may be spent only pursuant to appropriation bythe General Assembly and in accordance with the line item budget enacted by theGeneral Assembly. The Fund is subject to the provisions of the Executive BudgetAct, except that no unexpended surplus of the Fund shall revert to the GeneralFund. All money credited to the Fund shall be used to reimburse the GeneralFund for the following:
(1) Money appropriatedto the Department of Insurance to pay its expenses incurred in regulating theinsurance industry and other industries in this State.
(2) Money appropriatedto State agencies to pay the expenses incurred in regulating the insuranceindustry, in certifying statewide data processors under Article 11A of Chapter131E of the General Statutes, and in purchasing reports of patient data fromstatewide data processors certified under that Article.
(3) Money appropriatedto the Department of Revenue to pay the expenses incurred in collecting andadministering the taxes on insurance companies levied in Article 8B of Chapter105 of the General Statutes.
(4) Money appropriatedfor the office of Managed Care Patient Assistance Program established underG.S. 143‑730 to pay the actual costs of administering the program.
(5) Money appropriatedto the Department of Insurance for the implementation and administration ofindependent external review procedures required by Part 4 of Article 50 of thisChapter.
(6) Money appropriatedto the Department of Justice to pay its expenses incurred in representing theDepartment of Insurance in its regulation of the insurance industry and otherrelated programs and industries in this State that fall under the jurisdictionof the Department of Insurance.
(7) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withproviding staff support for State boards and commissions, including the NorthCarolina Manufactured Housing Board, State Fire and Rescue Commission, NorthCarolina Building Code Council, North Carolina Code Officials QualificationBoard, Public Officers and Employees Liability Insurance Commission, NorthCarolina Home Inspector Licensure Board, and the Volunteer Safety Workers'Compensation Board.
(8) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withcontinuing education programs under Article 33 of this Chapter and inconnection with the purchase and sale of copies of the North Carolina StateBuilding Code.
(9) Money appropriatedto the Department of Insurance for the regulation of the professional employerorganization industry pursuant to Article 89A of Chapter 58 of the GeneralStatutes.
(e) Definitions. Thefollowing definitions apply in this section:
(1) Repealed by SessionLaws 2003‑284, s. 43.2, effective for taxable years beginning on or afterJanuary 1, 2004.
(2) Insurance company. A company that pays the gross premiums tax levied in G.S. 105‑228.5 andG.S. 105‑228.8.
(3) Insurer. Definedin G.S. 105‑228.3. (1991, c. 689, s. 289; 1991 (Reg. Sess., 1992), c.812, s. 6(e); 1995, c. 360, ss. 1(i), 3(a); c. 517, s. 39(f), (g); 1995 (Reg.Sess., 1996), c. 646, s. 19; c. 747, s. 3; 1997‑443, s. 26.1; 1997‑475,s. 2.2; 1998‑212, s. 29A.7(b); 1999‑413, s. 4; 2000‑140, s.93.1(a); 2001‑424, ss. 12.2(b), 14E.1(a), 34.22(b), 34.22(c); 2001‑489,s. 2(d); 2002‑72, s. 9(a); 2002‑126, s. 15.5; 2002‑144, s. 1;2002‑159, s. 66.5; 2003‑284, ss. 22.2, 43.2; 2004‑124, s.21.1; 2005‑124, s. 7; 2005‑276, s. 38.4(b); 2008‑134, s.67(a); 2009‑445, s. 44.)
(a) Charge Levied. Thereis levied on each insurance company an annual charge for the purposes stated insubsection (d) of this section. The charge levied in this section is inaddition to all other fees and taxes. The percentage rate of the charge isestablished pursuant to subsection (b) of this section and is applied to thecompany's premium tax liability for the taxable year. In determining aninsurance company's premium tax liability for a taxable year, the followingshall be disregarded:
(1) Additional taxesimposed by G.S. 105‑228.8.
(2) Repealed by SessionLaws 2008‑134, s. 67(a), as amended by Session Laws 2009‑445, s.44, effective for taxable years beginning on or after January 1, 2008.
(3) Any tax credits forguaranty or solvency fund assessments under G.S. 105‑228.5A or G.S. 97‑133(a).
(4) Any tax creditsallowed under Chapter 105 of the General Statutes other than tax payments madeby or on behalf of the taxpayer.
(b) Rates. The rateof the charge for each taxable year shall be the percentage rate established bythe General Assembly. When the Department prepares its budget request for eachupcoming fiscal year, the Department shall propose a percentage rate of thecharge levied in this section. The Governor shall submit that proposed rate tothe General Assembly each fiscal year. The General Assembly shall set by lawthe percentage rate of the charge levied in this section. The percentage ratemay not exceed the rate necessary to generate funds sufficient to defray theestimated cost of the operations of the Department for each upcoming fiscalyear, including a reasonable margin for a reserve fund. The amount of thereserve may not exceed one‑third of the estimated cost of operating theDepartment for each upcoming fiscal year. In calculating the amount of thereserve, the General Assembly shall consider all relevant factors that mayaffect the cost of operating the Department or a possible unanticipatedincrease or decrease in North Carolina premiums or other charge revenue.
(c) Returns; WhenPayable. The charge levied on each insurance company is payable at the timethe insurance company remits its premium tax. If the insurance company isrequired to remit installment payments of premiums tax under G.S. 105‑228.5for a taxable year, it shall also remit installment payments of the chargelevied in this section for that taxable year at the same time and on the samebasis as the premium tax installment payments. Each installment payment shallbe equal to at least thirty‑three and one‑third percent (33.3%) ofthe insurance company's regulatory charge liability incurred in the immediatelypreceding taxable year.
Every insurance company shall,on or before the date the charge levied in this section is due, file a returnon a form prescribed by the Secretary of Revenue. The return shall state thecompany's total North Carolina premiums or presumed premiums for the taxableyear and shall be accompanied by any supporting documentation that theSecretary of Revenue may by rule require.
(d) Use of Proceeds. TheInsurance Regulatory Fund is created in the State treasury, under the controlof the Office of State Budget and Management. The proceeds of the charge leviedin this section and all fees collected under Articles 69 through 71 of thisChapter and under Articles 9 and 9C of Chapter 143 of the General Statutesshall be credited to the Fund. The Fund shall be placed in an interest‑bearingaccount and any interest or other income derived from the Fund shall be creditedto the Fund. Moneys in the Fund may be spent only pursuant to appropriation bythe General Assembly and in accordance with the line item budget enacted by theGeneral Assembly. The Fund is subject to the provisions of the Executive BudgetAct, except that no unexpended surplus of the Fund shall revert to the GeneralFund. All money credited to the Fund shall be used to reimburse the GeneralFund for the following:
(1) Money appropriatedto the Department of Insurance to pay its expenses incurred in regulating theinsurance industry and other industries in this State.
(2) Money appropriatedto State agencies to pay the expenses incurred in regulating the insuranceindustry, in certifying statewide data processors under Article 11A of Chapter131E of the General Statutes, and in purchasing reports of patient data fromstatewide data processors certified under that Article.
(3) Money appropriatedto the Department of Revenue to pay the expenses incurred in collecting andadministering the taxes on insurance companies levied in Article 8B of Chapter105 of the General Statutes.
(4) Money appropriatedfor the office of Managed Care Patient Assistance Program established underG.S. 143‑730 to pay the actual costs of administering the program.
(5) Money appropriatedto the Department of Insurance for the implementation and administration ofindependent external review procedures required by Part 4 of Article 50 of thisChapter.
(6) Money appropriatedto the Department of Justice to pay its expenses incurred in representing theDepartment of Insurance in its regulation of the insurance industry and otherrelated programs and industries in this State that fall under the jurisdictionof the Department of Insurance.
(7) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withproviding staff support for State boards and commissions, including the NorthCarolina Manufactured Housing Board, State Fire and Rescue Commission, NorthCarolina Building Code Council, North Carolina Code Officials QualificationBoard, Public Officers and Employees Liability Insurance Commission, NorthCarolina Home Inspector Licensure Board, and the Volunteer Safety Workers'Compensation Board.
(8) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withcontinuing education programs under Article 33 of this Chapter and inconnection with the purchase and sale of copies of the North Carolina StateBuilding Code.
(9) Money appropriatedto the Department of Insurance for the regulation of the professional employerorganization industry pursuant to Article 89A of Chapter 58 of the GeneralStatutes.
(e) Definitions. Thefollowing definitions apply in this section:
(1) Repealed by SessionLaws 2003‑284, s. 43.2, effective for taxable years beginning on or afterJanuary 1, 2004.
(2) Insurance company. A company that pays the gross premiums tax levied in G.S. 105‑228.5 andG.S. 105‑228.8.
(3) Insurer. Definedin G.S. 105‑228.3. (1991, c. 689, s. 289; 1991 (Reg. Sess., 1992), c.812, s. 6(e); 1995, c. 360, ss. 1(i), 3(a); c. 517, s. 39(f), (g); 1995 (Reg.Sess., 1996), c. 646, s. 19; c. 747, s. 3; 1997‑443, s. 26.1; 1997‑475,s. 2.2; 1998‑212, s. 29A.7(b); 1999‑413, s. 4; 2000‑140, s.93.1(a); 2001‑424, ss. 12.2(b), 14E.1(a), 34.22(b), 34.22(c); 2001‑489,s. 2(d); 2002‑72, s. 9(a); 2002‑126, s. 15.5; 2002‑144, s. 1;2002‑159, s. 66.5; 2003‑284, ss. 22.2, 43.2; 2004‑124, s.21.1; 2005‑124, s. 7; 2005‑276, s. 38.4(b); 2008‑134, s.67(a); 2009‑445, s. 44.)
(a) Charge Levied. Thereis levied on each insurance company an annual charge for the purposes stated insubsection (d) of this section. The charge levied in this section is inaddition to all other fees and taxes. The percentage rate of the charge isestablished pursuant to subsection (b) of this section and is applied to thecompany's premium tax liability for the taxable year. In determining aninsurance company's premium tax liability for a taxable year, the followingshall be disregarded:
(1) Additional taxesimposed by G.S. 105‑228.8.
(2) Repealed by SessionLaws 2008‑134, s. 67(a), as amended by Session Laws 2009‑445, s.44, effective for taxable years beginning on or after January 1, 2008.
(3) Any tax credits forguaranty or solvency fund assessments under G.S. 105‑228.5A or G.S. 97‑133(a).
(4) Any tax creditsallowed under Chapter 105 of the General Statutes other than tax payments madeby or on behalf of the taxpayer.
(b) Rates. The rateof the charge for each taxable year shall be the percentage rate established bythe General Assembly. When the Department prepares its budget request for eachupcoming fiscal year, the Department shall propose a percentage rate of thecharge levied in this section. The Governor shall submit that proposed rate tothe General Assembly each fiscal year. The General Assembly shall set by lawthe percentage rate of the charge levied in this section. The percentage ratemay not exceed the rate necessary to generate funds sufficient to defray theestimated cost of the operations of the Department for each upcoming fiscalyear, including a reasonable margin for a reserve fund. The amount of thereserve may not exceed one‑third of the estimated cost of operating theDepartment for each upcoming fiscal year. In calculating the amount of thereserve, the General Assembly shall consider all relevant factors that mayaffect the cost of operating the Department or a possible unanticipatedincrease or decrease in North Carolina premiums or other charge revenue.
(c) Returns; WhenPayable. The charge levied on each insurance company is payable at the timethe insurance company remits its premium tax. If the insurance company isrequired to remit installment payments of premiums tax under G.S. 105‑228.5for a taxable year, it shall also remit installment payments of the chargelevied in this section for that taxable year at the same time and on the samebasis as the premium tax installment payments. Each installment payment shallbe equal to at least thirty‑three and one‑third percent (33.3%) ofthe insurance company's regulatory charge liability incurred in the immediatelypreceding taxable year.
Every insurance company shall,on or before the date the charge levied in this section is due, file a returnon a form prescribed by the Secretary of Revenue. The return shall state thecompany's total North Carolina premiums or presumed premiums for the taxableyear and shall be accompanied by any supporting documentation that theSecretary of Revenue may by rule require.
(d) Use of Proceeds. TheInsurance Regulatory Fund is created in the State treasury, under the controlof the Office of State Budget and Management. The proceeds of the charge leviedin this section and all fees collected under Articles 69 through 71 of thisChapter and under Articles 9 and 9C of Chapter 143 of the General Statutesshall be credited to the Fund. The Fund shall be placed in an interest‑bearingaccount and any interest or other income derived from the Fund shall be creditedto the Fund. Moneys in the Fund may be spent only pursuant to appropriation bythe General Assembly and in accordance with the line item budget enacted by theGeneral Assembly. The Fund is subject to the provisions of the Executive BudgetAct, except that no unexpended surplus of the Fund shall revert to the GeneralFund. All money credited to the Fund shall be used to reimburse the GeneralFund for the following:
(1) Money appropriatedto the Department of Insurance to pay its expenses incurred in regulating theinsurance industry and other industries in this State.
(2) Money appropriatedto State agencies to pay the expenses incurred in regulating the insuranceindustry, in certifying statewide data processors under Article 11A of Chapter131E of the General Statutes, and in purchasing reports of patient data fromstatewide data processors certified under that Article.
(3) Money appropriatedto the Department of Revenue to pay the expenses incurred in collecting andadministering the taxes on insurance companies levied in Article 8B of Chapter105 of the General Statutes.
(4) Money appropriatedfor the office of Managed Care Patient Assistance Program established underG.S. 143‑730 to pay the actual costs of administering the program.
(5) Money appropriatedto the Department of Insurance for the implementation and administration ofindependent external review procedures required by Part 4 of Article 50 of thisChapter.
(6) Money appropriatedto the Department of Justice to pay its expenses incurred in representing theDepartment of Insurance in its regulation of the insurance industry and otherrelated programs and industries in this State that fall under the jurisdictionof the Department of Insurance.
(7) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withproviding staff support for State boards and commissions, including the NorthCarolina Manufactured Housing Board, State Fire and Rescue Commission, NorthCarolina Building Code Council, North Carolina Code Officials QualificationBoard, Public Officers and Employees Liability Insurance Commission, NorthCarolina Home Inspector Licensure Board, and the Volunteer Safety Workers'Compensation Board.
(8) Money appropriatedto the Department of Insurance to pay its expenses incurred in connection withcontinuing education programs under Article 33 of this Chapter and inconnection with the purchase and sale of copies of the North Carolina StateBuilding Code.
(9) Money appropriatedto the Department of Insurance for the regulation of the professional employerorganization industry pursuant to Article 89A of Chapter 58 of the GeneralStatutes.
(e) Definitions. Thefollowing definitions apply in this section:
(1) Repealed by SessionLaws 2003‑284, s. 43.2, effective for taxable years beginning on or afterJanuary 1, 2004.
(2) Insurance company. A company that pays the gross premiums tax levied in G.S. 105‑228.5 andG.S. 105‑228.8.
(3) Insurer. Definedin G.S. 105‑228.3. (1991, c. 689, s. 289; 1991 (Reg. Sess., 1992), c.812, s. 6(e); 1995, c. 360, ss. 1(i), 3(a); c. 517, s. 39(f), (g); 1995 (Reg.Sess., 1996), c. 646, s. 19; c. 747, s. 3; 1997‑443, s. 26.1; 1997‑475,s. 2.2; 1998‑212, s. 29A.7(b); 1999‑413, s. 4; 2000‑140, s.93.1(a); 2001‑424, ss. 12.2(b), 14E.1(a), 34.22(b), 34.22(c); 2001‑489,s. 2(d); 2002‑72, s. 9(a); 2002‑126, s. 15.5; 2002‑144, s. 1;2002‑159, s. 66.5; 2003‑284, ss. 22.2, 43.2; 2004‑124, s.21.1; 2005‑124, s. 7; 2005‑276, s. 38.4(b); 2008‑134, s.67(a); 2009‑445, s. 44.)
