56-12-212 - Right of offset. - Tennessee Statutes

56-12-212. Right of offset.

(a)  (1)  A member insurer may offset against any premium, franchise, excise or income tax liability or liabilities to this state an assessment described in § 56-12-208(h) to the extent of the lesser of:

          (A)  Ten percent (10%) of the amount of such assessment for each of the ten (10) calendar years following the year in which such assessment was paid; or

          (B)  One tenth of one percent (0.10%) of all premiums written in this state by the member insurer for each calendar year until recovery of the assessment or assessments is made.

     (2)  In the event a member insurer ceases doing business in this state, all uncredited assessments may be credited against any premium, franchise, excise, or income tax due for the year it ceases doing business.

(b)  A member insurer may transfer any offset right as described in this section to an affiliated member insurer. As used in this section:

     (1)  “Affiliated member insurer” means an insurance company licensed or holding a certificate of authority to do business in this state that controls, is controlled by, or is under common control with, another member insurer; and

     (2)  “Control” means holding, directly or indirectly, the ownership of, or power to vote, one hundred percent (100%) of the voting stock of another member insurer.

(c)  Any sums that are acquired by refund, pursuant to § 56-12-208(f), from the association by member insurers, and that have theretofore been offset against premium, franchise, excise, or income taxes as provided in subsection (a), shall be paid by such 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.

[Acts 1988, ch. 1032, § 12.]