Thursday, January 12, 2012

Wyoming to Apply State Tax Rate to Gross Premium of Multi-State Policies Through June

The Wyoming Insurance Department has announced that for all multi-state policies, where Wyoming is the home state, with effective dates July 21, 2011 through June 30, 2012, the entire gross premium will be taxed at the Wyoming tax rate of 3 percent.

The announcement was made to provide updated guidance regarding the filing of multi-state policies under the provisions of the Nonadmitted and Reinsurance Reform Act (NRRA). This additional guidance was necessary because the NIMA clearinghouse will not be operational before July 1, 2012.

Effective July 1, 2012, the NIMA premium tax allocation formula will be applied to all multi-state policy transactions. The affidavit at the department website may be used to report both single and multi-state transactions to the Wyoming Insurance Department. The 2011 Surplus Lines annual statement and tax payment is due March 1, 2012. Implementation of the quarterly reporting and tax payment procedures are being deferred until the NIMA Clearinghouse is operational.

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