For Insurers

Domestic life and disability companies - 2017 premium tax filing instructions

New for 2017

There are no changes from 2016 for the domestic life and disability tax forms.
 

Filing requirements

All life and disability insurance companies licensed in the State of Washington during the calendar year must file an online tax form, as provided by this office, even if no business was actually transacted within Washington during that time. Alternate filing methods are not accepted.

Due date

The completed online form and payment must be received by the Office of Insurance Commissioner on or before March 1 following the end of the calendar year. When the due date falls on a Saturday or Sunday, the form and payment are considered timely if received on the next business day.

Caution  Caution: Do not mail a paper version of the form or any attachments to our office.

Completing your premium tax form

Tax is generally due on all premiums, unless specifically exempted on the tax form. If you have questions, please contact us.

Premiums reported must be on the same basis as required on the Annual Statement.

The tax rate is 2 percent. Calculations will be completed automatically.

Selecting "Print" will print your form exactly as it appears on the screen, even if you have not saved your work.

Clicking the "Save Progress" button does not check for errors.

Remember  Remember: Save your work before moving away from the form; your work is not automatically saved.

Premium Reporting section

Premiums and Annuities as Reported on the Annual Statement

Life and annuity premiums entered in this section should, with few exceptions, match premiums reported for Washington on the corresponding lines of the Life Insurance (state) page filed with the National Association of Insurance Commissioners (NAIC).

Accident and health premiums entered in this section should, with few exceptions, match premiums reported for Washington on the corresponding lines of the Accident and Health Insurance (state) page filed with the NAIC.

Premiums and Annuities - Additional Detail

Premiums reported in this section are not in addition to premiums reported in the previous section; they are a subset of those premiums.

The purpose of breaking out the premiums is to allow us to accurately apply taxes and tax exemptions to the proper premiums. Premiums reported in this section capture detail not available on the Life Insurance Part 1 and Accident and Health Insurance pages of the Annual Statement. These premiums are carried through to the appropriate schedules.

Non-Exchange Premiums

Qualified Life premiums are certain products issued that are exempt or qualified under certain sections of the internal revenue code.

Qualified Life Dividends are from certain products issued that are exempt or qualified under certain sections of the internal revenue code.

Qualified Annuity premiums are certain products issued that are exempt or qualified under certain sections of the internal revenue code.

Qualified Annuity Dividends are from certain products issued that are exempt or qualified under certain sections of the internal revenue code.

Adult Dental premiums entered are used to reduce the taxable premiums on Schedule C.

Qualified Pediatric Dental Kids Only (Non-Exchange) premiums are for informational purposes only.

Qualified Stand-Alone Family Dental - Individual Market premiums are for informational purposes only.

Qualified Stand-Alone Family Dental - Small Group Market premiums are for informational purposes only.

Qualified Stand-Alone Family Dental - Large Group Market premiums entered are used to reduce the taxable premiums on Schedule C.

Non-Qualified Pediatric Dental premiums entered are used to reduce the taxable premiums on Schedule C.

Exchange Premiums

Tax revenue from all WA Exchange premiums is required to be deposited into an account separate from other tax revenue at the state treasury.

Qualified Health Plan premiums reflect plans offered through the WA Exchange and are taxed on Schedule D.

Adult Dental premiums reflect plans offered through the WA Exchange and reduces the taxable premium on Schedule D. In 2016, no stand-alone adult dental plans were offered through the Exchange.

Qualified Pediatric Dental Kids Only premiums reflect plans offered through the WA Exchange and are taxed on Schedule D.

Qualified Stand-Alone Family Dental - Individual Market premiums reflect plans offered through the WA Exchange and are taxed on Schedule D.

Qualified Stand-Alone Family Dental - Small Group Market premiums reflect plans offered through the WA Exchange and are taxed on Schedule D.

Qualified Stand-Alone Family Dental - Large Group Market premiums entered are used to reduce the taxable premiums on Schedule D.

Schedule A - Life Premium Taxes

Most fields on this schedule are populated from the Premium Reporting section of the tax form.

If your company received life premiums from unauthorized areas, report them on this schedule.

If your company received Army and Air Force Exchange Service (AAFES) Group Life premiums, report them on this schedule.

Schedule B - Non-Exchange Accident and Health Taxes

Most fields on this Schedule are populated from the Premium Reporting section of the tax form.

If your company received accident and health premiums from unauthorized areas, report them on this schedule.

If your company received Army and Air Force Exchange Service (AAFES) Group Accidental Death and Dismemberment premiums, report them on this schedule.

The Health Pool Assessment Available is displayed on this schedule. If the credit available would reduce taxable premiums below zero, the excess credit is carried to Schedule C. If there are no premiums reported on Schedule C, the excess credit is carried forward to the next tax year.

Schedule C - Exchange Accident and Health Taxes

All fields on this schedule are populated from the Premium Reporting section of the tax form.

The Health Pool Assessment Available, after being applied in Schedule B, is displayed on this schedule. If the credit available would reduce taxable premiums below zero, the excess credit is carried forward to the next tax year.

Schedule D - Life and Disability Assessment Credits

The assessment credit is pre-populated by the Office of Insurance Commissioner and cannot be edited. The assessment credit is prorated at 20 percent per year for five years, unless the credit balance falls under $1,000.

Example: Your company pays an assessment of $2,000 in calendar year 2014.

Year 1 (2014): Credit of $400 used, balance of $1,600.

Year 2 (2015): Credit of $400 used, balance of $1,200.

Year 3 (2016): Credit of $400 used, balance of $800.

Year 4 (2017): Credit of $800 used, balance of $0.

Schedule E - Filing and Miscellaneous Fees

If your company is no longer active in Washington and this is your final return, enter $0 as the Certificate of Authority Renewal Fee.

Summary

All fields in this section are populated from other areas of the tax form.

2016 premium tax overpayments, if any, will be applied to prepayments due for 2017. Overpayments in excess of prepayments due will be processed as refunds and sent to the attention of the tax contact we have on file.

Declaration and final submission

Review the declaration and, if necessary, update the contact information.

The contact information listed here is the insurance commissioner's only point of contact for premium taxes and regulatory surcharge purposes; please make sure the information is accurate.

Enter the name and title of the officer that has examined the form and declares that to the best of this officer’s knowledge and belief, the information is entirely true, accurate and complete.

Submit your form to the insurance commissioner by clicking "Final Submission."