§ 26.1-38.1-10 — Credits for assessments paid - Tax offsets

North Dakota § 26.1-38.1-10

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-38.1: Life and Health Insurance Guaranty Association

Text

1. A member insurer may offset against its premium tax liability to this state an
assessment described in section 26.1-38.1-06 to the extent of twenty percent of the
amount of such assessment for each of the five calendar years following the year in
which such assessment was paid. In the event a member insurer should cease doing
business, all uncredited assessments may be credited against its premium tax liability
for the year it ceases doing business.
2. A member insurer that is exempt from taxes referenced in subsection 1 may recoup
that member insurer's assessments by a surcharge on that member insurer's
premiums in a sum reasonably calculated to recoup the assessments over a
reasonable period of time, as approved by the commissioner. Amounts recouped may
not be considered premiums for any other purpose, including the computation of gross
premium tax, the medical loss ratio, or agent commission. If a member insurer collects
excess surcharges, the insurer shall remit the excess amount to the association, and
the excess amount must be applied to reduce future assessments in the appropriate
account.
3. Any sums that are acquired by refund, pursuant to section 26.1-38.1-06, from the
association by member insurers, and which have been offset against premium taxes
as provided in subsection 1, must be paid by the member insurers to this state in such

manner as the tax authorities may require. The association shall notify the
commissioner that such refunds have been made.