§ 26.1-46-08.1 — Purchasing group taxation - Fees

North Dakota § 26.1-46-08.1

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-46: Risk Retention Groups and Purchasing Groups

Text

1. a. Premium taxes and taxes on premiums paid for coverage of risks resident or
located in this state by a purchasing group or any members of the purchasing
group must be:
(1) Imposed at the same rate and subject to the same interest, fines, and
penalties as applicable to premium taxes and taxes on premiums paid for
similar coverage from a similar insurance source by other insureds; and
(2) Paid first by the insurance source, and if not by the source, by the insurance
producer for the purchasing group, and if not by the insurance producer,
then by the purchasing group.
b. To the extent any administrative fee is charged under subsection 2, the fee may
not be considered a premium and is not subject to premium tax.
2. A purchasing group's administrator, manager, or other related party may charge
reasonable fees provided the fees are:
a. For reimbursement of expenses incurred by the administrator, manager, or other
related party in performing its administrative duties for the purchasing group; and
b. Disclosed to all members of the risk purchasing group on a form approved by the
commissioner which states the nature of the administrative duties for which the
fees will be charged along with separate itemization of the amount of fees to be
paid by each member.