Company Fees, Taxes, Charges, Deposits, and Retaliatory Information

• Estimated Retaliatory Tax Form (PDF)

Company Fees

• Filing charter: $30 [Insurance Law § 9107] (foreign and domestic)
• Filing amendment to charter: $10 [Insurance Law § 9107] (domestic)
• Initial issuance of license: $10 [Insurance Law § 9107] (foreign and domestic)
• Annual renewal of license: none (foreign)
• Certificate of compliance, certificate of valuation, or certificate of deposit: $5 each [Insurance Law § 9107] (foreign and domestic)
• Processing of name: $25 [11 NYCRR 87] (foreign and domestic)

Taxes and Charges

Retaliatory Taxes and Fees: Payable to the Superintendent of Financial Services [Insurance Law §1112]

Insurers domiciled in states wherein New York insurers are charged in the aggregate taxes and fees greater or allowed credits less than those charged in New York, are required to pay to the Superintendent of Financial Services an amount equal to that imposed on New York insurers by laws of such other state.

An estimated payment is required equal to the lesser of 90% of the final amount determined to be due for the second preceding calendar year or 80% of the amount finally determined to be due for the corresponding calendar year. The estimated payment is due on or before December 15 of the corresponding calendar year.

Final calculations are computed by DFS in the manner used by the state of domicile and insurers are billed when applicable.

Franchise Tax: Payable to the New York State Department of Taxation and Finance within two and one half months of the close of the reporting period [Tax Law, Article 33]

Every domestic, foreign or alien insurance corporation, for the privilege of exercising its corporate franchise and doing business in this State, is required to pay a franchise tax computed in accordance with the provisions of Article 33 of the Tax Law as follows:

Life Insurance Corporations

The franchise taxes for life insurance corporations are computed on four bases: 1) an allocated entire net income base, 2) allocated business and investment capital base, 3) allocated net income plus compensation alternative base, and 4) minimum $250 tax base. Added to the highest base is a tax on allocated subsidiary capital. Added to this sum is the tax on gross direct premiums, less return premiums and dividends paid to policyholders, on risks located or resident within the state. Taxable premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, and include premium deposits, assessments, policy fees, membership fees, and every other compensation for such contracts. The tax rate on life premiums is .7%. The tax liability as computed may not be less than 1.5% or more than 2% of taxable premiums. Forms required to be filed along with instructions can be accessed on the New York State Department of Finance and Taxation website.

Non-life Insurance Corporations

The franchise tax for non-life insurance corporations is based solely on gross direct premiums, less return premiums and dividends paid to policyholders, on risks located or resident within the state. Taxable premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, and include premium deposits, assessments, policy fees, membership fees, and every other compensation for such contracts. The tax rate is 1.75% for accident and health premiums and 2.00% for all other non-life premiums. The minimum tax is $250. Forms required to be filed along with instructions can be accessed on the New York State Department of Finance and Taxation website.

A tax credit of 90% of the retaliatory taxes paid other states by domestic insurers is allowed; but this credit may not exceed the amount of the tax under Article 33 and must be claimed in the year it is paid.

MTA Surcharge: Payable to the New York State Department of Taxation and Finance [Tax Law, Article 33]

Every domestic, foreign or alien insurance corporation taxable under Article 33 that does business, employs capital, owns or leases property, or maintains an office in the Metropolitan Commuter Transportation District (includes the counties of New York, Bronx, Queens, Kings, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester), shall annually pay a tax surcharge on taxes imposed under Article 33 after the deduction of any credits otherwise allowable under Article 33 as allocated to such district. Forms required to be filed along with instructions can be accessed on the New York State Department of Finance and Taxation website.

Estimated Franchise Tax: Payable to the New York State Department of Taxation and Finance [Tax Law, Article 33]

If the corporation reasonably expects to owe more than $1,000 in franchise tax after credits estimated payments are required.

Fire Insurance Premium Tax: [Insurance Law §§ 9104 and 9105] Payable to the Superintendent of Financial Services and the cities of New York and Buffalo.

Payable annually on February 15 for foreign mutual insurers and March 1 for foreign stock insurers at the rate of 2% upon the amount of premiums received during the year by the insurer for any insurance against loss or damage by fire upon property situated in New York State. A fire department code/street listing is available on the Department of Financial Services’ website for use in connection with this tax. A credit for this tax is allowed against the tax imposed under Article 33 of the Tax Law.

Security Funds: Funds are maintained to pay claims against insolvent insurance companies as follows:

Workers’ Compensation Security Fund [Workers’ Compensation Law, Article 6A]: Payable quarterly to the Superintendent of Financial Services on May 15, August 15, November 15, and February 15 on direct written premiums less premiums (mutual companies may also deduct dividends) for policies issued to insure payment of compensation pursuant to the Workers’ Compensation Law of New York State.

Public Motor Vehicle Liability Security Fund [Insurance Law § 7601]: Payable quarterly to the Superintendent of Financial Services on May 15, August 15, November 15, and February 15 at the rate of 3% on direct written premiums less dividends on surety bonds and insurance policies written to insure payment of any legal or liability claims or judgments resulting from the operation, maintenance, use or defective construction of a motor vehicle causing: (a) damages for an incident to death or injuries to persons, (b) damages for the incident to injury or destruction of property as provided for by § 370 of the New York State Vehicle and Traffic Law (Indemnity Bonds or Insurance Policies on Vehicles Transporting Passengers for Hire).

Property/Casualty Insurance Security Fund [Insurance Law § 7603]: Payable quarterly to the Superintendent of Financial Services on May 15, August 15, November 15, and February 15 at various rates on direct written premiums less return premiums and less dividends on property/casualty lines of insurance.

Life Insurance Company Guaranty Corporation [Insurance Law § 7709]: Payable to the Life Insurance Company Guaranty Corporation. Assessments on foreign and domestic life insurers.

Additional Assessments:

Department of Motor Vehicles [Vehicle and Traffic Law §§ 317 and 363]: Insurers writing automobile bodily injury insurance are subject to an assessment for the administrative costs related to the Motor Vehicle Financial Security Act and the Motor Vehicle Safety Responsibility Act.

Motor Vehicle Accident Indemnification Corporation [Insurance Law § 5207]: Insurers writing motor vehicle liability insurance are subject to an assessment by the Motor Vehicle Accident Indemnification Corporation related to the operational costs of the corporation.

Workers' Compensation Board [Workers’ Compensation Law §§ 15(8), 25-a, 151, 214, and 228]:  Insurers authorized to transact workers' compensation and employers' liability insurance are subject to assessments by the Workers' Compensation Board for the administrative costs of the Board, Special Disability Fund, Fund for Reopened Cases, and Special Fund for Disability Benefits.

Deposits

Accident and Health only Companies

$200,000. Par, market, and statement values must be on deposit in qualifying securities with home state for protection of all policyholders.  See §§ 1318, 1319, and 4206 of the NYS Insurance Law.

Life Companies

$200,000 for Life and/or Annuities; $200,000 additional if also licensed for Accident and Health. Par, market, and statement values must be on deposit in qualifying securities with home state for protection of all policyholders.  See §§ 1318, 1319, and 4206 of the NYS Insurance Law.

Property/Casualty Companies

$500,000 or minimum capital or surplus, whichever is less, but not less than $400,000 for companies writing two or more types of insurance.

In addition, those insurers who seek to reinsure lines other than those lines which they are licensed to write direct or seek to write direct business outside of the US must have a deposit of $3,000,000.

It is recommended that the company include a cushion (i. e. 20%) in its deposit to allow for fluctuations in the market value of the securities in order to minimize the chances of the market value falling below the required amount.