Senate Bill No. 140–Senator O’Connell

February 8, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Requires insurers to include certain information concerning general premium tax on notices of renewal. (BDR 57-468)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to insurance; requiring insurers to include certain information concerning the general premium tax on notices of renewal sent to insureds; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 680B of NRS is hereby amended by adding thereto

1-2 a new section to read as follows:

1-3 If an insurer includes any portion of the general premium tax which

1-4 the insurer is required to pay pursuant to NRS 680B.027 in the amount

1-5 billed to its insureds for the premium for insurance, the insurer shall

1-6 state separately on each notice of renewal sent to its insureds the portion

1-7 of the premium that is attributable to the general premium tax.

1-8 Sec. 2. NRS 680B.025 is hereby amended to read as follows:

1-9 680B.025 For the purposes of NRS 680B.025 to 680B.039, inclusive

1-10 [:] , and section 1 of this act:

1-11 1. "Total income derived from direct premiums written":

1-12 (a) Does not include premiums written or considerations received from

1-13 life insurance policies or annuity contracts issued in connection with the

1-14 funding of a pension, annuity or profit-sharing plan qualified or exempt

1-15 pursuant to sections 401, 403, 404, 408, 457 or 501 of the United States

1-16 Internal Revenue Code as renumbered from time to time.

1-17 (b) Does not include payments received by an insurer from the Secretary

1-18 of Health and Human Services pursuant to a contract entered into pursuant

1-19 to section 1876 of the Social Security Act , [(] 42 U.S.C. § 1395mm . [).]

2-1 (c) As to title insurance , consists of the total amount charged by the

2-2 company for the sale of policies of title insurance.

2-3 2. Money accepted by a life insurer pursuant to an agreement which

2-4 provides for an accumulation of money to purchase annuities at future dates

2-5 may be considered as "total income derived from direct premiums written"

2-6 either upon receipt or upon the actual application of the money to the

2-7 purchase of annuities, but any interest credited to money accumulated while

2-8 under the latter alternative must also be included in "total income derived

2-9 from direct premiums written," and any money taxed upon receipt,

2-10 including any interest later credited thereto, is not subject to taxation upon

2-11 the purchase of annuities. Each life insurer shall signify on its return

2-12 covering premiums for the calendar year 1971 or for the first calendar year

2-13 it transacts business in this state, whichever is later, its election between

2-14 those two alternatives. Thereafter an insurer shall not change his election

2-15 without the consent of the commissioner. Any such money taxed as "total

2-16 income derived from direct premiums written" is, in the event of

2-17 withdrawal of the money before its actual application to the purchase of

2-18 annuities, eligible to be included as "return premiums" pursuant to the

2-19 provisions of NRS 680B.030.

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