Wyo. Code R. 044-0002-38
Effective Date: 06/01/1982 to 12/31/1996
Rule Type: Superceded Rules & Regulations
Reference Number: 044.0002.38.06011982
Effective January 1, 1983
These regulations governing allocation of premium for the purpose of taxation are promulgated pursuant to the authority granted the Insurance Commissioner under the Wyoming Administrative Procedure Act [ s 9-4-101 to 90-4-115] and the Wyoming Insurance Code [ 26-2-110 (a)].
These regulations are intended to provide a uniform standard for reporting direct premium income derived by insurers from or as a result of persons, property, subjects, or risks located, resident, or to be performed in Wyoming, which are insured or covered under policies or contracts covering persons, property, subjects, or risks located or resident in more than one (1) state, so that the State of Wyoming receives the proper amount of tax on such Wyoming premiums.
These regulations apply to each insurer authorized to transact the business of insurance in Wyoming and to each insurer formerly so authorized.
For the purpose of reporting total direct premium income as set forth at W.S. 26-4-103(a), the amount of such premium which shall be reported to the Insurance Commissioner, and upon which tax shall be paid, shall include, as to policies or contracts of insurance covering persons, property, subjects or risks located or resident in more than one (1) state, the amount of premium or consideration allocable to Wyoming as determined in accordance with these regulations.
The amount of premium or consideration for insurance as to persons, property, subjects of risks in Wyoming insured or covered under policies or contracts covering persons, property, subjects, or risks located or resident in more than one (1) state, shall be determined as follows:
a. The result obtained when the percentage derived by dividing the number of Wyoming risks by the whole number or risks under such policy or contract is multiplied by the total direct premium income derived from such policy or contract; or
b. The exact amount of premium or consideration collected from or on behalf of each person, property, subject or risk which is, in fact, located, resident or to be performed in Wyoming.
No method of allocation which fails to recognize the actual locations, residences, or situs of performance as used herein shall be permissible.
These regulations are applicable notwithstanding the fact that the policy or contract of insurance is entered into, or the premiums are paid and received, in a state or states other than Wyoming.
Failure to comply with these regulations constitutes failure to pay required premium taxes as set forth at W.S. 26-4-105 (b).
If any of the applications or provisions of these regulations are held invalid, the invalidity shall not affect other applications or provisions of this regulation which can be given effect without the invalid applications or provisions, and to this end these regulations are severable.
These regulations shall become effective for the tax-year commencing 1 January 1983, which taxes are payable March 1, 1984.