287.690. Premium tax on insurance carriers, purpose, rate, how determined--use of funds for employers mutual insurance company, purpose. - Missouri Statutes

Premium tax on insurance carriers, purpose, rate, how determined--useof funds for employers mutual insurance company, purpose.

287.690. 1. Prior to December 31, 1993, for the purpose of providingfor the expense of administering this chapter and for the purpose set out insubsection 2 of this section, every person, partnership, association,corporation, whether organized under the laws of this or any other state orcountry, the state of Missouri, including any of its departments, divisions,agencies, commissions, and boards or any political subdivisions of the statewho self-insure or hold themselves out to be any part self-insured, company,mutual company, the parties to any interindemnity contract, or other plan orscheme, and every other insurance carrier, insuring employers in this stateagainst liability for personal injuries to their employees, or for deathcaused thereby, under this chapter, shall pay, as provided in this chapter,tax upon the net deposits, net premiums or net assessments received, whetherin cash or notes in this state, or on account of business done in this state,for such insurance in this state at the rate of two percent in lieu of allother taxes on such net deposits, net premiums or net assessments, whichamount of taxes shall be assessed and collected as herein provided. BeginningOctober 31, 1993, and every year thereafter, the director of the division ofworkers' compensation shall estimate the amount of revenue required toadminister this chapter and the director shall determine the rate of tax to bepaid in the following calendar year pursuant to this section commencing withthe calendar year beginning on January 1, 1994. If the balance of the fundestimated to be on hand on December thirty-first of the year each tax ratedetermination is made is less than one hundred ten percent of the previousyear's expenses plus any additional revenue required due to new statutoryrequirements given to the division by the general assembly, then the directorshall impose a tax not to exceed two percent in lieu of all other taxes on netdeposits, net premiums or net assessments, rounded up to the nearest one-halfof a percentage point, which amount of taxes shall be assessed and collectedas herein provided. The net premium equivalent for individual self-insuredemployers and any group of political subdivisions of this state qualified toself-insure their liability pursuant to this chapter as authorized by section537.620, RSMo, shall be based on average rate classifications calculated bythe department of insurance, financial institutions and professionalregistration as taken from premium rates filed by the twenty insurancecompanies providing the greatest volume of workers' compensation insurancecoverage in this state. For employers qualified to self-insure theirliability pursuant to this chapter, the rates filed by such group of employersin accordance with subsection 2 of section 287.280 shall be the net premiumequivalent. Every entity required to pay the tax imposed pursuant to thissection and section 287.730 shall be notified by the division of workers'compensation within ten calendar days of the date of the determination of therate of tax to be imposed for the following year. Net premiums, net depositsor net assessments are defined as gross premiums, gross deposits or grossassessments less canceled or returned premiums, premium deposits orassessments and less dividends or savings, actually paid or credited.

2. After January 1, 1994, the director of the division shall make one ormore loans to the Missouri employers mutual insurance company in an amount notto exceed an aggregate amount of five million dollars from the fund maintainedto administer this chapter for start-up funding and initial capitalization ofthe company. The board of the company shall make application to the directorfor the loans, stating the amount to be loaned to the company. The loansshall be for a term of five years and, at the time the application for suchloans is approved by the director, shall bear interest at the annual ratebased on the rate for linked deposit loans as calculated by the statetreasurer pursuant to section 30.758, RSMo.

(RSMo 1939 § 3755, A.L. 1955 p. 590, A.L. 1971 H.B. 321, A.L. 1987 H.B. 564, A.L. 1988 H.B. 1244, A.L. 1993 S.B. 251, A.L. 1994 S.B. 701)

Prior revision: 1929 § 3365

CROSS REFERENCE:

Director of the department of insurance, financial institutions and professional registration or director of revenue may make supplemental assessment, when, RSMo 374.245