The Florida Department of Revenue (DOR) has published a notice regarding 2010 Florida law changes related to FIGA assessments and premium taxes. According to the notice:
"Amounts recouped from policyholders as a result of a Florida Insurance Guaranty Association assessment under subsection 631.57(3)(a), Florida Statutes (F.S), relating to an insolvency that occurs on or after July 1, 2010, are considered taxable premiums under section 624.509, F. S.. Amounts recouped as a result of a Florida Insurance Guaranty Association emergency assessment under subsection 631.57(3)(e), F.S. are not considered taxable premiums.
"If the taxable recouped amounts are not included in direct written premiums on the insurer’s Annual Statement, the insurer must add the recouped amount in the computation of its taxable premiums. Insurers must maintain records of their recouped assessment amounts and must document the proper amount of premiums subject to insurance premium tax."
The full notice is available at this link: http://dor.myflorida.com/dor/tips/tip10b8-02.html
The 2010 Florida law change in FIGA assessments is available at these links:
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Perry Cone practices insurance, compliance and government law, and provides consulting to in-house counsel, from the Tallahassee office of GrayRobinson. He writes from his perspective as a former general counsel, legal executive, and leader in the Florida insurance industry.
Visit Perry's blog at tallyinslaw.com/
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