Sec. 38a-48. (Formerly Sec. 38-53b). Assessment of payments by domestic insurance companies. Adjustments. Penalty. Interest. Payments credited to Insurance Fund. Allocation of assessments.
Sec. 38a-48. (Formerly Sec. 38-53b). Assessment of payments by domestic insurance companies. Adjustments. Penalty. Interest. Payments credited to Insurance Fund. Allocation of assessments. (a) On or before June thirtieth, annually, the
Commissioner of Revenue Services shall render to the Insurance Commissioner a statement certifying the amount of taxes or charges imposed on each domestic insurance
company or other domestic entity under chapter 207 on business done in this state during
the preceding calendar year; the statement for local domestic insurance companies shall
set forth the amount of taxes and charges before any tax credits allowed as provided in
section 12-202.
(b) On or before July thirty-first, annually, the Insurance Commissioner and the
Office of the Healthcare Advocate shall render to each domestic insurance company or
other domestic entity liable for payment under section 38a-47, (1) a statement which
includes the amount appropriated to the Insurance Department and the Office of the
Healthcare Advocate for the fiscal year beginning July first of the same year, the cost
of fringe benefits for department and office personnel for such year, as estimated by the
Comptroller, and the estimated expenditures on behalf of the department and the office
from the Capital Equipment Purchase Fund pursuant to section 4a-9 for such year, (2)
a statement of the total taxes imposed on all domestic insurance companies and domestic
insurance entities under chapter 207 on business done in this state during the preceding
calendar year, and (3) the proposed assessment against that company or entity, calculated
in accordance with the provisions of subsection (c) of this section, provided that for the
purposes of this calculation the amount appropriated to the Insurance Department and
the Office of the Healthcare Advocate plus the cost of fringe benefits for department
and office personnel and the estimated expenditures on behalf of the department and
the office from the Capital Equipment Purchase Fund pursuant to section 4a-9 shall be
deemed to be the actual expenditures of the department and the office.
(c) (1) The proposed assessments for each domestic insurance company or other
domestic entity shall be calculated by (A) allocating twenty per cent of the amount to
be paid under section 38a-47 among the domestic entities organized under sections 38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
respective shares of the total taxes and charges imposed under chapter 207 on such
entities on business done in this state during the preceding calendar year, and (B) allocating eighty per cent of the amount to be paid under section 38a-47 among all domestic
insurance companies and domestic entities other than those organized under sections
38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, in proportion to their
respective shares of the total taxes and charges imposed under chapter 207 on such
domestic insurance companies and domestic entities on business done in this state during
the preceding calendar year, provided if there are no domestic entities organized under
sections 38a-199 to 38a-209, inclusive, and 38a-214 to 38a-225, inclusive, at the time
of assessment, one hundred per cent of the amount to be paid under section 38a-47 shall
be allocated among such domestic insurance companies and domestic entities.
(2) When the amount any such company or entity is assessed pursuant to this section
exceeds twenty-five per cent of the actual expenditures of the Insurance Department
and the Office of the Healthcare Advocate, such excess amount shall not be paid by
such company or entity but rather shall be assessed against and paid by all other such
companies and entities in proportion to their respective shares of the total taxes and
charges imposed under chapter 207 on business done in this state during the preceding
calendar year, except that for purposes of any assessment made to fund payments to the
Department of Public Health to purchase vaccines, such company or entity shall be
responsible for its share of the costs, notwithstanding whether its assessment exceeds
twenty-five per cent of the actual expenditures of the Insurance Department and the
Office of the Healthcare Advocate. The provisions of this subdivision shall not be applicable to any corporation which has converted to a domestic mutual insurance company
pursuant to section 38a-155 upon the effective date of any public act which amends said
section to modify or remove any restriction on the business such a company may engage
in, for purposes of any assessment due from such company on and after such effective date.
(d) For purposes of calculating the amount of payment under section 38a-47, as
well as the amount of the assessments under this section, the "total taxes imposed on
all domestic insurance companies and other domestic entities under chapter 207" shall
be based upon the amounts shown as payable to the state for the calendar year on the
returns filed with the Commissioner of Revenue Services pursuant to chapter 207; with
respect to calculating the amount of payment and assessment for local domestic insurance companies, the amount used shall be the taxes and charges imposed before any
tax credits allowed as provided in section 12-202.
(e) On or before September thirtieth, annually, for each fiscal year ending prior to
July 1, 1990, the Insurance Commissioner and the Healthcare Advocate, after receiving
any objections to the proposed assessments and making such adjustments as in their
opinion may be indicated, shall assess each such domestic insurance company or other
domestic entity an amount equal to its proposed assessment as so adjusted. Each domestic insurance company or other domestic entity shall pay to the Insurance Commissioner
on or before October thirty-first an amount equal to fifty per cent of its assessment
adjusted to reflect any credit or amount due from the preceding fiscal year as determined
by the commissioner under subsection (g) of this section. Each domestic insurance
company or other domestic entity shall pay to the Insurance Commissioner on or before
the following April thirtieth, the remaining fifty per cent of its assessment.
(f) On or before September first, annually, for each fiscal year ending after July 1,
1990, the Insurance Commissioner and the Healthcare Advocate, after receiving any
objections to the proposed assessments and making such adjustments as in their opinion
may be indicated, shall assess each such domestic insurance company or other domestic
entity an amount equal to its proposed assessment as so adjusted. Each domestic insurance company or other domestic entity shall pay to the Insurance Commissioner (1) on
or before June 30, 1990, and on or before June thirtieth annually thereafter, an estimated
payment against its assessment for the following year equal to twenty-five per cent of
its assessment for the fiscal year ending such June thirtieth, (2) on or before September
thirtieth, annually, twenty-five per cent of its assessment adjusted to reflect any credit
or amount due from the preceding fiscal year as determined by the commissioner under
subsection (g) of this section, and (3) on or before the following December thirty-first
and March thirty-first, annually, each domestic insurance company or other domestic
entity shall pay to the Insurance Commissioner the remaining fifty per cent of its proposed assessment to the department in two equal installments.
(g) Immediately following the close of the fiscal year, the Insurance Commissioner
and the Healthcare Advocate shall recalculate the proposed assessment for each domestic insurance company or other domestic entity in accordance with subsection (c) of this
section using the actual expenditures made by the Insurance Department and the Office
of the Healthcare Advocate during that fiscal year and the actual expenditures made on
behalf of the department and the office from the Capital Equipment Purchase Fund
pursuant to section 4a-9. On or before July thirty-first, the Insurance Commissioner and
the Healthcare Advocate shall render to each such domestic insurance company and
other domestic entity a statement showing the difference between their respective recalculated assessments and the amount they have previously paid. On or before August
thirty-first, the Insurance Commissioner and the Healthcare Advocate, after receiving
any objections to such statements, shall make such adjustments which in their opinion
may be indicated, and shall render an adjusted assessment, if any, to the affected companies.
(h) If any assessment is not paid when due, a penalty of twenty-five dollars shall
be added thereto, and interest at the rate of six per cent per annum shall be paid thereafter
on such assessment and penalty.
(i) The commissioner shall deposit all payments made under this section with the
State Treasurer. On and after June 6, 1991, the moneys so deposited shall be credited
to the Insurance Fund established under section 38a-52a and shall be accounted for as
expenses recovered from insurance companies.
(P.A. 80-482, S. 281, 345, 348; P.A. 82-26, S. 2; P.A. 84-185, S. 1; P.A. 88-326, S. 1, 11; P.A. 89-165, S. 2, 3; P.A.
90-148, S. 26, 34; June Sp. Sess. P.A. 91-14, S. 13, 30; P.A. 92-60, S. 5; June Sp. Sess. P.A. 01-9, S. 67, 131; P.A. 05-102, S. 4; P.A. 06-113, S. 1; P.A. 08-178, S. 3.)
History: P.A. 82-26 amended Subsec. (b) to provide that the comptroller rather than administrative services department
estimate fringe benefit costs for insurance department personnel; P.A. 84-185 amended Subsec. (g) to provide for a $10
penalty on overdue assessments and to provide the interest charges shall accrue on both the assessment and penalty; P.A.
88-326 inserted a new Subsec. (c)(2) concerning assessments which exceed 25% of the expenditures of the insurance
department; P.A. 89-165 amended Subsec. (b)(1) to provide that the statement rendered to each insurance company include
the estimated expenditures on behalf of the department from the capital equipment purchase fund, amended Subsec. (b)(3)
to provide that the proposed assessment against each company be calculated to include such estimated expenditures,
amended Subsec. (f) to provide that when the proposed assessment is recalculated the actual expenditures from such fund
shall be used and deleted Subsec. (i); P.A. 90-148 amended Subsec. (e) to make assessment procedure therein applicable
to state fiscal years ending prior to July 1, 1990, and inserted a new Subsec. (f), with appropriate changes in lettering for
succeeding subsections, applicable to state fiscal years ending after July 1, 1990, providing for assessment procedures
very similar to those in Subsec. (e) except that on June thirtieth annually, first payable June 30, 1990, each domestic
company shall make an estimated payment for the following year, such payment being in addition to payments of 25% of
the company's assessment for the year in each of September, December and March following; Sec. 38-53b transferred to
Sec. 38a-48 in 1991; June Sp. Sess. P.A. 91-14 amended Subsec. (i) to provide that on and after June 6, 1991, moneys
deposited with treasurer shall be credited to insurance fund, rather than general fund; P.A. 92-60 amended Subsec. (c) by
changing the manner of assessment for domestic entities organized under certain sections of the insurance statutes; (Revisor's note: In 1997 in Subsec. (i) the phrase "... the Insurance Fund and established under section 38a-52a ..." was changed
editorially by the Revisors to "... the Insurance Fund established under section 38a-52a and ..." thereby correcting an error
in the codification of June Sp. Sess. P.A. 91-14, S. 13); June Sp. Sess. P.A. 01-9 added provisions re the Office of the
Managed Care Ombudsman in Subsecs. (b), (c), and (e) to (g), effective July 1, 2001; P.A. 05-102 amended Subsecs. (b),
(c), (e), (f) and (g) by renaming the Office of the Managed Care Ombudsman the Office of the Healthcare Advocate and
making technical and conforming changes; P.A. 06-113 amended Subsec. (c)(2) to add exception for purposes of any
assessment made to fund payments to Department of Public Health to purchase vaccines, making company or entity
responsible for its share of costs, notwithstanding whether its assessment exceeds 25% of actual expenditures of Insurance
Department and Office of the Healthcare Advocate, effective July 1, 2006; P.A. 08-178 increased penalty from $10 to $25
in Subsec. (h).
See Sec. 19a-7j re assessment of health and welfare fee on domestic insurers and health care centers doing life or health
insurance business in state.