CHAPTER 496
H.P. 1336 - L.D. 1885
An Act to Amend the Insurance Premium Tax for Certain Large Domestic Insurers
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §2513, as amended by PL 1989, c. 556, Pt. B, §5, is further amended by adding at the end a new paragraph to read:
Notwithstanding this section, for tax years commencing on or after January 1, 1997, the tax imposed by this section with respect to premiums on qualified group disability policies written by every insurer, except a large domestic insurer, must be at the rate of 1% and must be at the rate of 2.55% with respect to those premiums written by every large domestic insurer. For the purposes of this section, the term "qualified group disability policies" is limited to group health insurance policies properly reported as such in the insurer's annual statement and whose sole coverage is the full or partial replacement of an individual's income in the event of disability. Policies that contain coverages in addition to replacement of income coverage are considered to solely provide that coverage as long as the premium related to the additional coverages is not more than 10% of the total premium charged. The term "qualified group disability policies" does not include workers' compensation insurance policies, policies that include coverages that are collectively renewable, policies that provide for credit disability insurance or policies that pay benefits only upon the occurrence of hospitalization. For purposes of this section, a "large domestic insurer" is any insurer domiciled in this State with assets in excess of $5,000,000,000 as reported on its annual statement.
Effective September 19, 1997, unless otherwise indicated.
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