§ 27-3-38.1. Insurance independently procured — Duty to report and pay tax.
(a) Each insured in this state who procures or continues or renews insurance with an insurer
not licensed to do an insurance business in this state on properties, risks, or exposures
located or to be performed in whole or in part in this state, other than insurance
procured through a surplus lines licensee, shall, within thirty (30) days after the
date the insurance was so procured, continued, or renewed, file a written report with
the tax administrator, upon forms prescribed by the tax administrator, showing the
name and address of the insured or insureds, name and address of the insurer, the
subject of the insurance, a general description of the coverage, the amount of premium
currently charged, and additional pertinent information reasonably requested by the
tax administrator.
(b) Where the insurance covers properties, risks, or exposures located or to be performed
both in and out of this state, the sum payable shall be computed based on: (1) An
amount equal to four percent (4%) on that portion of the gross premiums allocated
to this state pursuant to § 27-3-38.3; plus (2) An amount equal to the portion of the premiums allocated to other states
or territories on the basis of the tax rates and fees applicable to properties, risks,
or exposures located or to be performed outside of this state.
(c) Pursuant to applicable sections of the general laws, the commissioner shall participate
in a multistate surplus lines compact or agreement for the purpose of collecting and
disbursing to reciprocal states any funds collected pursuant to subsection (b)(2)
of this section applicable to other properties, risks, or exposures located or to
be performed outside of this state. To the extent that other states where portions
of the properties, risks, or exposures reside have failed to enter into compact or
reciprocal allocation procedure with this state, the net premium tax collected shall
be retained by this state.
(d) Gross premiums charged for the insurance, less any return premiums, are subject to
a tax at the rate of four percent (4%). At the time of filing the report required
in subsection (a) of this section, the insured shall file with the tax administrator,
in the form that the administrator may prescribe, a return under oath or affirmation
containing information that may be deemed necessary for the determination of the tax
imposed by this section. The insured shall at the same time pay the tax due to the
tax administrator.
(e) If an independently procured policy covers properties, risks, or exposures only partially
located or to be performed in this state, the tax payable by the insured shall be
computed on the portion of the premium properly attributable to the properties, risks,
or exposures located or to be performed in this state in the manner provided in § 27-3-38.3.
(f) This section does not abrogate or modify chapter 16 of this title (Unauthorized Insurance
Business), or any other provision of this title.