DRS: AN 99(4), Refund To Member Insurers Of Assessments Paid By Them To Connecticut Life And Health Insurance Guaranty Association

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

This Announcement has been obsoleted by SN 2000(12)

AN 99(4)

Refund To Member Insurers Of Assessments
Paid By Them To Connecticut Life And Health Insurance Guaranty Association


PURPOSE: The purpose of this Announcement is to inform insurers to which the Connecticut Life and Health Insurance Guaranty Association has refunded any portion of an assessment under Conn. Gen. Stat. 38a-866, of their obligation to pay 50% of the portion refunded to the Department of Revenue Services on or before October 15, 1999.


EFFECTIVE DATE: Upon issuance.


STATUTORY AUTHORITY: Conn. Gen. Stat. 38a-858 to 38a-875, inclusive (Connecticut Life and Health Insurance Guaranty Association Act).


BACKGROUND: The Connecticut Life and Health Insurance Guaranty Association ("Association") is an association of insurers created by the Connecticut Life and Health Insurance Guaranty Association Act ("Act") to enable the guaranty of payment of insurance benefits and of continuation of insurance coverage's. The Association provides protection for policy owners, insured's, beneficiaries, annuitants, payees and assignees of life insurance policies, health insurance policies, annuity contracts, and supplemental contracts against failure in the performance of contractual obligations due to the impairment of the insurer issuing such policies or contracts. Members of the Association are subject to assessment to provide funds to carry out the purpose of Act. The board of directors of the Association may refund to member insurers the amount by which the assets of the Association exceed the amount the board finds is necessary to carry out during the coming year the obligations of the Association.


ASSOCIATION REQUIRED TO NOTIFY DEPARTMENT OF REFUND OF ASSESSMENT: The Association is required to notify the Department of Revenue Services whenever any portion of an assessment under Conn. Gen. Stat. 38a-866 has been refunded to insurers. Each insurer which paid an assessment under Conn. Gen. Stat. 38a-866 was permitted to offset 50% of the amount of such assessment against its Connecticut insurance premiums tax liability. Therefore, whenever any portion of the assessment has been refunded to an insurer, the insurer is required under Conn. Gen. Stat. 38a-866(h) to pay to the Department of Revenue Services 50% of any sums which are acquired by refund from the Association pursuant to Conn. Gen. Stat. 38a-866(f), if the insurer had offset assessments paid to the Association against its Connecticut insurance premiums tax liability.


PAYMENT BY MEMBER INSURERS REQUIRED BY OCTOBER 15, 1999: On or about September 1, 1999, the Association refunded a portion of the assessment under Conn. Gen. Stat. 38a-866 to member insurers. Therefore, on or before October 15, 1999, each insurer which offset an assessment paid to the Association against its Connecticut insurance premiums tax liability is required to pay to the Department of Revenue Services 50% of the assessment refunded by the Association. If an insurer did not offset the assessment against its Connecticut insurance premiums tax liability, the insurer must promptly advise the Department of Revenue Services of this fact. If the amount that an insurer is required to pay to the Department of Revenue Services is not paid on or before October 15, 1999, the Department of Revenue Services will bill the insurer for the amount and will assess interest at the rate of 1% per month or fraction thereof (from October 15, 1999 to the date of payment) and a penalty of 10% of the amount due or $50, whichever is greater.

Payment by check or money order made payable to Commissioner of Revenue Services is to be mailed to:

Department of Revenue Services
Attn: Robert Cournoyer
Excise Tax Subdivision, Audit Division
25 Sigourney Street
Hartford, Connecticut 06106-5032


EFFECT ON OTHER DOCUMENTS: None affected.


EFFECT OF THIS DOCUMENT: An Announcement is a document that alerts taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies or practices.


FOR FURTHER INFORMATION ON THIS ANNOUNCEMENT: For further information about this Announcement, please contact Robert Cournoyer at 860-541-3234 (telephone) or 860-541-7698 (fax).


FOR FURTHER INFORMATION ON OTHER MATTERS: Please call the Department of Revenue Services during business hours Monday through Friday:

  • 1-800-382-9463 (toll-free from within Connecticut), or
  • 860-297-5962 (anywhere).

TTY, TDD and Text Telephone users only may transmit inquiries 24 hours a day by calling 860-297-4911.


FORMS AND PUBLICATIONS: Forms and publications are available all day, seven days a week:

  • Internet: preview and download forms and publications from the DRS web site: http://www.ct.gov/drs
  • Telephone: Call 1-800-382-9463 (toll-free from within Connecticut), or 860-297-5962 (anywhere) and select Option 2 from a touch-tone phone.

AN 99(4)
Insurers Refund
Issued 09/13/99