August 7, 1968
[A> UPPERCASE TEXT WITHIN THESE SYMBOLS IS ADDED <A]
Circular Letter # 7
TO ALL EXCESS LINE BROKERS
Chapter 247 Laws of 1968 amended Section 122 of the Insurance Law in part to read as follows:
[A> SECTION 9 <A]
"Every person, firm, association or corporation licensed pursuant to the provisions of this section shall pay to the superintendent a sum equal to three [A> AND ONE FOURTH <A] per cent of the gross premiums charged the insureds by the insurers for insurance procured by such licensee pursuant to such license, less the amount of such premiums returned to such insureds, [A> EXCEPT THAT WITH RESPECT TO INSURANCE PROCURED DURING THE CALENDAR YEAR NINETEEN HUNDRED SIXTY-EIGHT THE RATE SHALL BE THREE PER CENT OF THE GROSS PREMIUMS, LESS PREMIUMS RETURNED, ON INSURANCE PROCURED PRIOR TO JULY FIRST AND THREE AND ONE-FOURTH PER CENT OF THE GROSS PREMIUMS, LESS PREMIUMS RETURNED, ON INSURANCE PROCURED ON AND AFTER SAID DATE. <A] The amount of such payments which represents [A> A SUM EQUAL TO THREE PER CENT <A] of fire insurance premiums shall be distributed by the superintendent as prescribed in section five hundred fifty-four; and the [A> BALANCE <A] thereof shall be paid over by the superintendent to the state treasurer." (Underlined sections are new)
You will note that the effect of this amendment is to increase the tax rate to three and one-fourth per cent on insurance procured on and after July 1, 1968. The provisions of this Chapter are being called to your attention at this time for your information and guidance. The due date of the taxes involved has not been changed and the Tax Report in which the above changes will be reflected will not be due until March 15, 1969.
Kindly acknowledge receipt of this letter.
Very truly yours,
Superintendent of Insurance