Interpretation and application of NMSA 1978 59A-11-3(A) and 59A-12-15

OFFICE of the SUPERINTENDENT of INSURANCE Superintendent ofInsurance John G. Franchini INSURANCE BULLETIN No. 2014-16 October 10, 2014 P.O. Box 1689 1120 Paseo de Peralta Santa Fe, NM 87504-1689 (505) 827-4601 www.OSLstate.nm,lls TO: ALL PARTIES REQUIRED TO FILE PREMIUM TAX RE: ESTIMATED QUARTERLY PREMIUM TAX AND HEALTH INSURANCE SURTAX THE FOLLOWING BULLETIN is issued pursuant to 13.1.2,1 to 13.1.2,10 NMAC. The purpose of this Bulletin is to advise insurers and other parties that are required under Section D of 59A-6-2 NMSA 1978 to make estimated payments of premium tax and health insurance premium surtax to the New Mexico Office of Superintendent of Insurance that the language of Section D of 59A-6-2 NMSA 1978 was revised effective July 1,2014. The new language, which is currently in effect, states that the "estimated payments shall be equal to at least one-fourth of the payment made during the previous calendar year 01' one-fifth of the actual payment due for the current calendar year, whichever is greater." The Office of Superintendent ofInsurance interprets the statutory phrase "one-fifth of the actual payment due for the current calendar year" to mean "one-fifth of the actual payment due for the current calendar quarter" in order to avoid cumulative double-counting of quarterly taxes due as the year progresses. The attached 2014 Estimated Quarterly Premium Tax Report displays the required entries. Any questions about this Bulletin should be directed to Maria Soto at (505) 827-4075 or at maria.soto@state.nm.us. DONE AND ORDERED this L.a,th day of October, 2014. j••'J 'l {,) ,-) ~:~: '.' !. :~) !/) co (') co :r ,,--{ u_ ~ ~X2'$z~, JOHN G. FRANCHINI Superintendent ofInsurance STATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE Financial Audit Bureau P.O. Box 1689, Santa Fe, New Mexico, 87504-1689 1120 Paseo De Peralta, Room 433, Santa Fe, New Mexico, 87501 505-827-5781, 505-827-4601 or 1-800-427-5674 2014 Estimated Quarterly Premium Tax Report (effective 3rd quarter of 2014) Filing Status: Company Name: Address: _____________________________ Name or Address change (Please note changes) NM Company Code: NAIC #: AMENDED Reason: __________________ __________________ Contact Person: Phone: Email: Filing Period: Instructions/Reminders:  1st Quarter Due April 15th  2nd Quarter Due July 15th * Make one check payable to “Office of Superintendent of Insurance or OSI” 3rd Quarter Due Oct. 15th * Late, non-filing, unsigned and/or incomplete reports will be assessed a 4th Quarter Due Jan. 15th penalty pursuant to NMSA 1978, Section 59A-6-4. * New Mexico Premium Tax rate is 3.003%. * Applicable Credits are transferable between lines of business, with written confirmation. For each Column enter the following: 1. 25% of tax due in preceding calendar year 2. 20% of tax due for this quarter 3. Tax credit to be applied This line is to be used to report ONLY the applicable credit to be applied. 4. Amount Due (Greater of 1 or 2, minus 3) All health insurers and plans shall complete the following: 1. 25% of tax due in preceding calendar year 2. 20% of tax due for this quarter 3. Tax credit to be applied (This line is to be used to report ONLY the applicable credit to be applied) 4. Amount Due (Greater of 1 or 2, minus 3) Check Number Check Amount $ Signature of Authorized Preparer Date The signature for the Authorized Preparer denotes: 1) The Authorized Preparer is authorized to sign and submit this report; and 2) The Authorized Preparer confirms the contents of this report are true and correct to the best of the Authorized Preparer’s knowledge. Form 306: Revised 10-10-14 Life/Health 54 Casualty 54 Property 78 Vehicle 78 Surtax 53 SIGN