Instructions - Office of the Superintendent of Insurance

STATE OF NEW MEXICO
OFFICE OF SUPERINTENDENT OF INSURANCE
Financial Audit Bureau
1120 Paseo de Peralta, Room 433, Santa Fe, New Mexico 87501
P.O. Box 1689, Room 433, Santa Fe, New Mexico 87504
Telephone: 505-827-5781
Toll Free: 1-855-427-5674
Fax: 505-827-4734
INSTRUCTIONS FOR PREMIUM TAX FILINGS
All quarters and final reports (includes zero premium written in New Mexico) must be filed timely by all insurance
companies authorized to transact business in New Mexico.
FAILURE TO COMPLY WITH ANY OF THE INSTRUCTIONS PROVIDED, LATE, NON-FILING, UNSIGNED AND/OR
INCOMPLETE1 REPORTS WILL RESULT IN THE FILING NOT BEING RECOGNIZED AS A TIMELY FILING, AND
PENALTIES WILL BE ASSESSED PURSUANT TO NMSA 1978, SECTION 59A-6-4.
Make all checks payable to the Office of Superintendent of Insurance or OSI. Send a single check per filing.
DO NOT Send a letter of exemption in lieu of filing; no company is exempt regardless of premium.
DO NOT Net lines of business (surtax line is a separate line of business).
DO NOT Send premium tax forms, checks or related documents to any other OSI division or bureau.
DO NOT Combine premium tax payments for multiple companies.
DO NOT Send in all four quarters at one time. Submit each quarter individually according to its respective due date.
DO NOT Send original premium tax forms with refund requests. Refunds must be sent in separately.
DO NOT Round numbers according to NAIC policy. Must follow instructions below:
Rounding:
Beginning July 1, 2014, cents will be rounded to the nearest hundredth as follows: digits 1 through 4 will be rounded down
and digits 5 through 9 will be rounded up. EXAMPLE: $35.452 = $35.45, and $35.487 = $35.49 or penalties will be
assessed, pursuant to statute NMSA 1978, Section 59A-6-4.
FILING FINAL PREMIUM TAX FORMS (INCLUDES SURTAX INFORMATION):
FORM #300—LIFE/HEALTH COMPANIES
FORM #301—CASUALTY AND MISCELLANEOUS COMPANIES
FORM #302—PROPERTY INSURANCE COMPANIES
FORM #303—VEHICLE INSURANCE COMPANIES
The premium tax finals must be postmarked no later than April 15, of every year.
OSI Premium Tax Instructions
Revised 1/12/15
Page 1 of 5
1
See page 5 of these instructions for a complete listing of what must be included in the filing for it to be complete.

Premium Tax Finals must have an enclosed copy of the New Mexico Business Page and Schedule “T” Forms:
-

The final premium tax return must coincide with the New Mexico Business Page and the Schedule “T” from the
NAIC.
Finance and service charges, as reported on annual statements must be included on all premium tax returns.
Information and documents required:
-
Political Subdivisions:
o
-
Return Premiums:
o
-
MUST attach a breakdown for OSI’s review for the allowance of proper credit to be given.
Negative Premium(s):
-
Can ONLY be claimed on a final report,
Can ONLY be claimed for three years from the original calendar year (e.g., if the negative premium began in calendar
year 2010 then the negative premium can ONLY be claimed through calendar year 2013) and,
Can ONLY be claimed, if it is described in a separate sheet as follows (e.g. workman’s compensation, other
liability/occurrence):
o

MUST attach a breakdown for OSI’s review for the allowance of proper credit to be given.
Federally exempt premiums:
o

MUST attach a breakdown for OSI’s review for the allowance of proper credit to be given.
Premiums received from Authorized companies for reinsurance on NM Risks:
o
-
MUST attach a breakdown for OSI’s review for the allowance of proper credit to be given.
Dividends paid/credited to policyholders:
o
-
MUST attach a breakdown for OSI’s review for the allowance of proper credit to be given.
SEE ATTACHED SAMPLE BREAKDOWN SHEET
Medical Insurance Pool and Health Alliance Credits:
-
MUST submit copies of cancelled checks, front and back.
MUST attach a breakdown of MIP 50% and MIP 75%.
MUST attach previous year’s FINAL MIP and HA Assessments.
Credits taken will be accepted on the Final Premium Tax Return ONLY.
MIP and HA credits shall NOT be taken on quarterly reports.
If cancelled check(s) and assessment copies are NOT attached, your company will NOT be given credit for those
amounts.
OSI Premium Tax Instructions
Revised 1/12/2015
Page 2 of 5
Health Insurance Surtax:
-
Please refer to NMSA 1978, Section 59A-6-2(C); NMSA 1978, Section 59A-7-3 and NMSA 1978, Section 59A-18-13.2
for general clarification and definitions for health insurers.
-
The surtax line is NOT to be netted with any other tax due.
-
The final premium tax return must coincide with the New Mexico Business Page and the Schedule “T” from the NAIC.
-
Attach a breakdown of sur taxable amounts.
FILING QUARTERLY PREMIUM TAX FORMS:
FORM #306—STANDARD QUARTERLY
The quarterly premium tax reports must be postmarked no later than the appropriate deadline; that is:
1st quarter due April 15th
2nd quarter due July 15th
3rd quarter due October 15th
4th quarter due January 15th

Enter the applicable data for both line 1 and line 2; pay the greater of the two minus 3.

Applying Credits:
-

25% of preceding year tax due:
-

When applying credit to the quarterly report, please enter the credit amount in row 3.
Credit will be processed in the form it is received on the report. Please make sure you have entered correct amounts to
avoid any penalties and/or underpayments.
Credits are transferable between lines of business.
Transferring credit: Please indicate the use of any credits on the form and/or an attached letter explaining where
and how to use the credits.
Estimated payments shall be equal to at least one-fourth of the payment made during the previous calendar year.
20% of current tax due (see further details below):
-
NMSA 1978, Section 59A-6-2(D) has been amended and is effective as of the 3rd quarter premium tax filings, due
October 15th. Until that time, companies must calculate the premium tax due at 80% of the current tax due.
NOTE: Please DO NOT enter any amounts on the form other than credits to be applied, or tax being paid. (i.e. credit balance,
etc.)
OSI Premium Tax Instructions
Revised 1/12/2015
Page 3 of 5
REFUNDS:

Requirements:
-
Do not attach the original quarter and/or final return with the refund request. They must be submitted
separately.
Refund requests:
-
-
MUST be submitted in writing on the company’s letterhead to the Financial Audit Bureau. The request must identify
the refund, the year the overpayment occurred, line of business and amount of refund requested.
MUST attach copies of cancelled checks (front and back side of the check) and supporting documentation which caused
the overpayment.
MUST include a completed New Mexico W-9 (located on the Financial Audit Bureau webpage).
NOTE: Credits can only be used or refunded for three calendar years from the date of the erroneous payment pursuant to
NMSA 1978, Section 59A-6-5(B).
MAILINGS:
For REGULAR mailing, mail your forms and payments to the following address:
New Mexico Office of the Superintendent of Insurance
Financial Audit Bureau
P.O. Box 1689, Room 433
Santa Fe, NM 87504
For OVERNIGHT mailing, mail your forms and payments to the following address:
New Mexico Office of the Superintendent of Insurance
Financial Audit Bureau
1120 Paseo de Peralta, Room 433
Santa Fe New Mexico 87504
EACH COMPANY IS RESPONSIBLE FOR ENSURING THE CORRECT MAILING ADDRESS,
ROOM NUMBER AND ADDRESEE IS ON THE ENVELOPE, AND ALSO FOR ENSURING THE
FINANCIAL AUDIT BUREAU HAS RECEIVED YOUR PREMIUM TAX FORM AND/OR
PAYMENT. IF YOUR FORM AND/OR PAYMENT IS NOT POSTMARKED BY THE PREMIUM
TAX DUE DATE, YOU MAY INCUR A PENALTY AS PER SECTION 59A-6-4 NMSA 1978.
OSI Premium Tax Instructions
Revised 1/12/2015
Page 4 of 5
Definition of “Complete” Premium Tax Forms:






Every field must be filled in, including but not limited to fields and premium tax form in general that
warrant a “zero”, based on the lines of business for which a company is licensed and/or doing business in
and the facts and circumstances of each company’s Schedule T or premiums written for the quarter being
submitted.
All companies who are licensed to do business but are not doing business must submit a complete premium
tax form each quarter indicating the company has done zero business and does not owe premium taxes.
All forms must be signed by the authorized preparer and/or other authorized persons as indicated on each
premium tax form.
All forms must be dated
All final premium tax forms must be notarized
Other than the information specific to premiums written or tax due in the preceding calendar year, every
form must indicate the following information:
o The filing period
o The company name (as currently licensed to do business in New Mexico)
o The company address specific to premium taxes
o The NM Company code
o The NAIC code
o The contact person for premium taxes
o The contact person’s phone number
o The contact person’s email
o If applicable, indicate if the form is amended and the reason for the amendment
o If applicable, indicate any changes (or anticipated changes) to company or contact person name
and address.
Should you have any questions about the aforementioned information, please contact the Financial Audit Bureau
at (505) 827-5781.
Emphasis added:
PENALTY FOR VIOLATIONS:
Every insurer, nonprofit health care plan, health maintenance organization, prepaid dental plan
or prearranged funeral plan transacting business in New Mexico that fails to file when due any
report for taxation, regardless of whether tax is due, or to pay when due any tax or fees as
required in this article shall be liable to the state for the amount thereof and for penalty of one
thousand dollars ($1,000) for each month or part thereof it has failed to file the report or pay
the tax or fees after demand therefor. Services of process in any action against a person to
recover the tax, fee or penalty may be made upon the superintendent as attorney for service of
process as provided in Section 59A-5-32 NMSA 1978.
OSI Premium Tax Instructions
Revised 1/12/2015
Page 5 of 5
NEGATIVE PREMIUM BREAKDOWN WORKSHEET
POLICY NUMBER
POLICY EFFECTIVE
DATE
XXXXXX
01-01-2014
INSURED NAME
ANNUAL
STATEMENT LINE
NAME
ACCOUNTING DATE
XXXXX
Worker’s Comp
01-01-2014
$1,000.00
TOTAL
Attachment A to Premium tax instructions
DIRECT
PREMIUM
WRITTEN